Before creating a KPI for a sales manager, you need to fix the main goals of the organization, finally form the company's strategy. Based on the data obtained, you can create an algorithm for developing an individual KPI system suitable for a specific case. Step by step, it may look like this:
Step 1: Setting the KPI calculation period
This is the period in which managers must meet their targets while working according to the planned schedule. It is at the end of this period that bonuses are paid to those who have particularly distinguished themselves. For example, the billing period is 35 days.
Step 2: Determining the percentage of KPIs in the salary structure
Let's imagine that before how does botim work the innovations, the company had a 100% (60,000 rubles) salary. Now the amount of cash payment consists of 50% (30,000 rubles) of the salary and 50% (30,000 rubles) of the KPI. The easiest way to implement such a system is to announce a new motivational scheme to newcomers. Those who have been working in the company for a long time need a special approach when announcing these introductory figures.
Algorithm for developing a KPI system for a sales manager
Step 3: Defining the key manager functionality
It is necessary to determine what exactly in the manager's activities helps the company to get rich. Most often, we are talking about specific sales of the company's products or services. This will be the key functionality of the employee.
Step 4: Setting Key Performance Indicators for Bonuses
These should be no more than three indicators that can be calculated and can change in one direction or another due to the direct actions of the manager. It is very important that in this situation you cannot rely on the experience of other companies. The indicators should be key exclusively for your company.
For example:
volume of sales of goods by the manager in rubles;
sales volume of product by manager A (the product with the highest margin and the largest share in total sales);
special task: shipping new clients.
The formulation of indicators is very important. It is necessary to abandon "not". For example, "not to reduce the volume of sales of goods" is a bad statement of key indicators. It is necessary to stimulate the employee to work actively, to achieve the result, and not to hold on and avoid something.
Step 5: Setting specific values for indicators
In other words, it is necessary to determine the proportion of indicators from the main volume of the KPI bonus.
For example:
the volume of sales of goods by the manager in rubles is 60%;
sales volume of product A – 30%;
special task – 10%.
If we translate this into the ruble equivalent, then it turns out that with a general KPI of 30,000, the sales volume in rubles is 18,000, the sales volume of product A is 9,000, and the special task is 3,000.
Setting specific values for indicators