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Key Advice for a Sales Network’s Balanced Scorecard

Today, virtually every company relies on different reports and/or balanced scorecards – some more sophisticated than others – to analyze business results, track progress and make decisions,but do we have the right scorecard for our organization? To answer this question, we suggest that you think about the following questions:

Are the indicators you are using gathering the information that is necessary to conduct tracking and follow up activities?
Are the reports that you generate intuitive or do they need information to go along with them?
Is your data always up to date and available to those who need it?
If the answer to any of these questions is “no”, think about how you can improve thosespecific aspects.

A few weeks ago we read a post by Juan Ruiz del Portal (CEO of Overlap Spain) about the Retail Territory Manager vs.the Area Sales Manager, and we concluded that the importance of these roles does not lie solely on the management of territory, but also as a way to add value to each of their channels, their customers and their partners.

The ideal situation brings us to present an integrated balanced scorecard for a sales network, so as to allow us to present or gather information on:

• An analysis of the responsibility and activity planning department: how is my area, what goals do I have and what do I need to do to get the expected results.
• The evolution of results: information relating to the progress and attainment of objectives in such a way as to allow me to make decisions in case of deviations and to redirect any situation.
Professional development: identify strengths and areas for improvement to create development plans that promote the improvement of anindividual’s knowledge, skills, attitudes and impact on results.

The following are 10 tips for creating or updating a balanced scorecard:

1. Define qualitative and quantitative indicators.
2. Establish work processes that will be aligned with the qualitative indicators as well as have impacts on the quantitative indicators.
3. Develop visual and intuitive reports that will serve as a summary along with detailed reports for in depth analysis.
4. Reduce the number of reports that are used.
5. Establish who will be responsible for generating reports and keeping them up todate.
6. Set a schedule for when reports will be updated and released and follow that schedule.
7. Systematize the job of data gathering and analysis as much as possible.
8. Ensure data accuracy.
9. Encourage management engagement through the use of these types of reports.
10. Manage change with the sales team to develop activities aligned with the qualitative and quantitative indicators.

It is critical that the balanced scorecard consolidates information from the activity in a way that adds value and ensures proper follow up to facilitate decision making, so as to promote the impact on results.


An article by Esther Torremocha, Key Account Manager at Overlap Spain.

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