Trinity Finance’s Sales Organization and Sales Approach (G): Performance Management

Trinity Finance’s Sales Organization and Sales Approach (G): Performance Management

After having assessed the extent and scope of engagement with all the relevant stakeholders of Trinity Finance Ltd. (Trinity), the Leadership Team’s (LT) closing agenda was to define and design an effective and efficient sales performance system. The Chief Sales Officer (CSO), along with Chief People’s Officer (CPO) and the Zonal Sales Heads (ZSH) assembled in Trinity’s boardroom on June 23rd 2016 to deliberate on the appropriate sales performance management system and the meeting was presided by the CSO, Sunil Kapoor.

CSO (Sunil Kapoor): Welcome to this meeting, colleagues. Trust all of you must have worked on the brief shared with you earlier regarding institutionalizing an effective sales performance system.

Colleagues (CPO and ZSHs): Yes, Sunil..............

Setting of Sales Targets

CPO: The first point is an analysis of the very process of setting ‘sales targets’.

CSO: Do you all agree that every percentage point share gained by our competitors is a loss to us? Also, how many of you, are aware of the expected CAGR of Indian Financial Services Industry by 2025?

..............................

Steering and Managing Sales Performance

ZSH3: The sales personnel think that they are performing more than enough already by achieving their annual sales targets. Why would they involve themselves in engaging with the customer? How would that benefit the sales personnel and the company?

ZSH1: Is it possible for a Sales Executive, who does the field work with no team to lead, demonstrate leadership skills?

CSO: ........................

Effective Sales Performance

CSO: The third issue in redefining performance management system is to define what constitutes an ‘effective sales performance’.

ZSH1: We even have performance-based monetary incentive schemes to motivate them............

Sales Performance Measurement

CSO: What’s your assessment of the sales performance measurement that’s in place now?

ZSH3: We need to design a monitoring and measurement system to keep a check on all the contributions of the sales personnel. Most importantly, this should correspond with the BASIS model that was presented just a while ago..........

Assignment Questions

I. What is your assessment of ‘setting the right sales target’ process? What would be your recommendation?
II. ZSH3 proposed the BASIS model for effective sales performance at Trinity Finance Limited. What is your assessment of the same?
III.....................

Exhibits

Exhibit I: Effective Sales Performance – BASIS

Exhibit II: PRIME – Model for Effective Performance Management System

Trinity Finance’s Sales Organization and Sales Approach (G): Performance Management

Synopsis

This caselet, seventh and the last in the ‘Trinity Finance’s Sales Organization and Sales Approach’ series, showcases the need for an effective performance management system to enable the organization to change from being an ‘order-fulfilling’ to ‘order-creating and order-fulfilling’ company. The Leadership Team (LT) of Trinity Finance Ltd. (Trinity) identified four key areas – setting right sales targets, steering and managing sales performance, effective sales performance and ideal performance management system. However, by addressing these issues can Trinity meet its organizational mandate of ‘RACE’ (Radical Approach to Customer Engagement).

Prerequisite Conceptual Understanding/Before the Classroom Discussion

The students/participants should be asked to read the following article:

• • “Research Note – The future of Sales Performance Management”, www.imcindia.co.in/files/TheFutureofSales.pdf, May 2013

Case Positioning and Setting

This caselet can be used in MBA Programs for the following course/module:

• • Sales Management – What does an effective sales performance constitute and how an efficient sales performance management system is designed?
• • HRM Course – Performance Management and Appraisal – To motivate and manage the performance of employees and design an efficient performance management system

Assignment Questions

• I. What is your assessment of ‘setting the right sales target’ process? What would be your recommendation?
• II. ZSH3 proposed the BASIS model for effective sales performance at Trinity Finance Limited. What is your assessment of the same?
• III. ............

Preamble to the Case Analysis

This caselet initially helps understand the process of setting sales targets prevalent at Trinity and enables a discussion on a better process of setting sales targets followed by managing sales performance of the sales personnel. In addition, it helps set parameters to measure the sales performance and design an efficient sales performance management system. The caselet analysis was carried out as presented in Exhibit (TN)-I................