Performance evaluation of the head of the sales department
Posted: Mon Jan 20, 2025 10:10 am
It is important to objectively evaluate the work of the head of the sales department. If, for example, his KPI is evaluated in the same way as his subordinates, then such indicators as:
Number of calls that resulted in an appointment.
Number of doctor database meetings held.
Number of completed questionnaires.
The disadvantage of this approach is obvious. It considers the activity of the manager as an ordinary salesman, but not as a manager. Meetings with key clients who will bring the company good profits are rare. There are always few such clients, so there is little point in taking into account the number of calls and questionnaires in this case. There is a high probability that the manager will be underestimated, his output may decrease, and he will start looking for moral and material satisfaction in another company.
Another approach takes into account a number of indicators that will allow one to evaluate his work as a manager:
Fulfillment of set plans by the department as a whole and by each employee in particular.
Increasing the customer base.
Growth rates of product sales.
Rhythm of work is the uniformity of the plan’s implementation over a certain period of time.
The presence of accounts receivable, measures taken to reduce it.
Reliability and relevance of the provided reports.
Work on personnel selection.
Number of staff training events.
To provide material incentives to the manager, you can use the well-known scheme for calculating bonuses:
If the plan is fulfilled by less than 80%, the department head and managers receive only an official salary.
If the plan is completed by 80-100%, an increasing coefficient is applied.
If the plan is fulfilled over 100%, payments can increase several times, depending on the result.
Often, maximum restrictions on bonuses are used against deliberate underestimation of planned figures. The bonus system should develop together with the situation on the market and in the company, key standards should be regularly reviewed: the level of sales in recent months, prices in the company and competitors, expansion or reduction of the offered assortment.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
Frequently Asked Questions About Head of Sales
The head of the sales department in a commercial structure is a key position with a wide range of tasks and responsibilities. This requires good professional skills and excellent personal qualities.
How is it different from a sales director?
The Sales Director, in addition to managing all of the company's sales, develops a general sales strategy, defining goals and priorities, building appropriate relationships with key clients, conducting market and competitor analysis, and managing sales through various channels and partners.
How much should a sales manager be paid?
An owner who wants to ensure high profitability of his company highly values the work of an effective manager. Specific amounts vary greatly from region to region, but it should be a payment several times higher than the average in a given area. The payment system takes into account the overall performance of the department. A good sales manager will ensure significant growth for your business and justify all your investments.
How to increase the efficiency of a sales manager?
It is worth analyzing its functionality and, if possible, unloading it by delegating some of the responsibilities to other employees. This depends on the capabilities of the enterprise. If it is a small business or a startup with 1-5 employees, then the manager most often does everything on his own. If the department has 6-10 employees or more, then you can assign a deputy to the manager or delegate some of his tasks to sales managers. It is advisable to automate work processes as much as possible.
A competent approach to selecting a candidate will ensure increased activity in the department and, as a result, the company’s profit.
Author of the article
Dmitry Svistunov
Number of calls that resulted in an appointment.
Number of doctor database meetings held.
Number of completed questionnaires.
The disadvantage of this approach is obvious. It considers the activity of the manager as an ordinary salesman, but not as a manager. Meetings with key clients who will bring the company good profits are rare. There are always few such clients, so there is little point in taking into account the number of calls and questionnaires in this case. There is a high probability that the manager will be underestimated, his output may decrease, and he will start looking for moral and material satisfaction in another company.
Another approach takes into account a number of indicators that will allow one to evaluate his work as a manager:
Fulfillment of set plans by the department as a whole and by each employee in particular.
Increasing the customer base.
Growth rates of product sales.
Rhythm of work is the uniformity of the plan’s implementation over a certain period of time.
The presence of accounts receivable, measures taken to reduce it.
Reliability and relevance of the provided reports.
Work on personnel selection.
Number of staff training events.
To provide material incentives to the manager, you can use the well-known scheme for calculating bonuses:
If the plan is fulfilled by less than 80%, the department head and managers receive only an official salary.
If the plan is completed by 80-100%, an increasing coefficient is applied.
If the plan is fulfilled over 100%, payments can increase several times, depending on the result.
Often, maximum restrictions on bonuses are used against deliberate underestimation of planned figures. The bonus system should develop together with the situation on the market and in the company, key standards should be regularly reviewed: the level of sales in recent months, prices in the company and competitors, expansion or reduction of the offered assortment.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
Frequently Asked Questions About Head of Sales
The head of the sales department in a commercial structure is a key position with a wide range of tasks and responsibilities. This requires good professional skills and excellent personal qualities.
How is it different from a sales director?
The Sales Director, in addition to managing all of the company's sales, develops a general sales strategy, defining goals and priorities, building appropriate relationships with key clients, conducting market and competitor analysis, and managing sales through various channels and partners.
How much should a sales manager be paid?
An owner who wants to ensure high profitability of his company highly values the work of an effective manager. Specific amounts vary greatly from region to region, but it should be a payment several times higher than the average in a given area. The payment system takes into account the overall performance of the department. A good sales manager will ensure significant growth for your business and justify all your investments.
How to increase the efficiency of a sales manager?
It is worth analyzing its functionality and, if possible, unloading it by delegating some of the responsibilities to other employees. This depends on the capabilities of the enterprise. If it is a small business or a startup with 1-5 employees, then the manager most often does everything on his own. If the department has 6-10 employees or more, then you can assign a deputy to the manager or delegate some of his tasks to sales managers. It is advisable to automate work processes as much as possible.
A competent approach to selecting a candidate will ensure increased activity in the department and, as a result, the company’s profit.
Author of the article
Dmitry Svistunov