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How to Design a High-Impact Sales Review Process
With so much riding on the performance of your salespeople, you need to be methodical in your leadership approach.
Best Practice Sales Performance Review Structure
Delivering a Rewarding Sales Review Experience
Now that you have a strong sales performance review track to run on, the next critical step is delivering a powerful review experience for your people.
The way you make that happen is by creating an open environment of sharing. During the review meeting, you can afford to dig deeper to address gap areas that have only been lightly touched on during the normal course of business due to time limitations.
Compensation Plan Renewal needs to be a Separate Focus
Contrary to what most people think, sales performance reviews should not involve discussion around compensation increases or adjustments. In fact, your compensation plan renewal process should be an entirely separate focus area for you as a sales leader. It should also be a separate discussion between you and your salespeople.
That said, referring to performance-based comp plan accelerators during the goal-setting aspect of the sales performance review is an impacting linkage. Our sales coach role calls for us to not only strive to achieve company revenue objectives but also guide the achievement of our sellers’ personal goals.
When it comes to high performers, their personal goals almost always involve their desire to blow the doors off their quota minimums!
Applying focus on your sellers’ personal goals and career objectives is a critical aspect of the review process given its tie to employee retention. This is more important than ever as we live through periods of limited workforce availability.
If reviewing your sales comp plan is currently at the top of your list, check out a previous blog I wrote called, How to Drive The Right Sales Behavior With Your Compensation Plan. I suspect you’ll find some helpful design guidance in there.
Ongoing Sales Coaching is The Difference Maker
Done properly, your salesperson should come out of their performance review having created an action plan for the next relevant time period. Depending on the improvement areas identified, it could be a short-term monthly plan or something that spans over the next quarter or longer.
Based on how you see your salesperson progressing, you may recommend a book for them to read or find a training course that will help them conquer “Will-Do” or “Can-Do” struggle areas. Maybe shadowing another salesperson would be helpful or implementing a sales mentor program.
Whatever your approach, your role as a coach is to continually check in on progress during routine 1-to-1 meetings and serve as a support agent.
In the event a shortcoming cannot be overcome, and employee separation is necessary, it should not come as a surprise to the employee because you provided clear awareness of what was needed to change and a plan to get there.
Key Takeaways for Sales Performance Reviews
Dan Mahony
President
I am part of a national group of Senior Sales Leaders who collaborate to share insights like the examples shown in this article. We formed because of our shared passion to help business leaders exponentially grow their revenue.
