Rather than starting over every year with a new sales plan, why not keep one plan going from now on?
Old Way: Traditionally, sales plans were developed and submitted prior to the end of the year. One year I was required to write my plan in July! This was to allow my boss time to write his and his boss time to write hers, etc. These plans are inherently inaccurate because we cannot predict what will be happening a few weeks from now; much less more than a year from now.
New Way: Write a twelve-month plan and then, as each month ends, replace it with a new month a year out. At the end of January, 2008, add a new plan for January, 2009.
Depending on your sales cycle, have some months "Final", later months "Flexible", even later months "Fluid" and, finally, some months "Future". For most organizations, assigning one quarter (three months) to each category is sufficient.
Final months are the ones against which sales performance will be measured. Commissions, bonuses and other forms of recognition are applied based on the individual's performance in this time frame.
Flexible months can be adjusted based on market forces, the economy, competitive activity, etc. These adjustments must be done deliberately and should be backed with facts, empirical data, etc. Adjustments can be made in the incentive and bonus plans based on changes in this set of months.
Fluid months are ones we keep an eye on and adjust based on changes that happen in the Final and Flexible months. Sales leadership may want to begin considering changes in the compensation plan as well as incentive and bonus plans based on what they see happening here.
Future months become increasingly accurate as time passes. Rather than setting a twelve-month plan in place once a year, we stay in practice, resetting the twelfth month at the end of each month.
Let Chuck help you with your 2008 planning. Email or call him today.
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