Every company that is not an NGO needs to sell to achieve its short/medium/long term goals. However, over time, the manager can get confused when managing business results, and this is due to one factor: the more an organization grows or even retreats, the more complex the management work becomes!

But what do you mean, Renato? Selling is no mystery and a good process can generate scalable results! However, reality persists in not agreeing with our convictions.

When your company starts to expand, it is necessary to choose a single qualification methodology, design processes that are performed in a standard way and also structure scalable training.

And when things also start to go wrong, it is necessary to readjust the entire commercial structure of the company. The similarity in these two scenarios is that there must be a readjustment of the goal.

Furthermore, every enterprise is made up of people, and as we know, not even the universe is as complex as our minds.

That’s why a team of Nova city Islamabad will explain a little how the goal adjustment work is done, but first, we’ll show you the logic that should be used to make it possible to monitor your company’s business results.

Management of commercial results based on indicators

In the past, the commercial area followed, on average, the following indicators:

  • LTV;
  • CAC;
  • New recipes;
  • Sales cycle.

Based on these metrics, commercial managers made decisions such as hiring or firing salespeople, changing the commercial discourse and even modifying the total value of contracts.

And that only happened in well-structured companies. In the case of SMEs, the average was to focus only on the entry of new revenues.

But with the advances that came with the segmentation of the process in Hunters and Closers, many other indicators appeared. They are:

  • MRR;
  • ARR;
  • SQL;
  • MQL;
  • Conversion rates between process steps;
  • Sales cycle by step of the funnel;
  • Among many others.

With this, it became possible to follow each of the stages of the process. In the end, detecting which parts of the funnel were evolving well and which were the bottlenecks in the process became possible.

So, defining what the goal would be became something more analytical than based on feeling.

But, no goal is fixed. It can even be a demotivating factor for the team when it is built in the wrong way or if the market situation changes.

Therefore, it is necessary to know the correct time to redefine the business goal and also the correct way to carry out this change. For anyone managing business results, this job can be quite stressful. Want to know why?

Leading is not ordering

Why scream?

When the team of Capital Smart City is setting a business goal, one of the points that can make it very difficult to align with the team is the perception of whether the goal is achievable or not.

For any company, it is necessary to set clear objectives for employees to believe that it is possible to achieve the expected result.

Therefore, it is no use for the commercial manager to “send” the team to seek some result. If he perceives that the goal is something akin to climbing the Himalayas, the motivation will be reduced and, even reaching satisfactory and possible numbers (within the reality of the case) will become more difficult.

Therefore, in order to be able to lead a commercial team, in addition to being close to prospectors, qualifiers and sellers, it is necessary to work within reality.

People like to follow dreamers, not lunatics.

Changes to the scenario: what is the ideal way to react?

There are several scenarios where the business goal must be readjusted. For those who are managing business results, having a holistic view of their own business and the market is vital in order not to make the wrong decision.

It is necessary to know when to hire when to fire or even readjust the goal, according to the increase or decrease in the team’s productivity. Shall we go deeper?

Economic crisis: when firing or pivoting is the only option

Your company starts the year coming from exponential growth in the previous period. Expectations are high, your entire company is motivated and you, as a manager, know that it is necessary to maintain this growth rate to make that small company a giant in the sector.

So you need to hire multiple prospectors, qualifiers and sales executives to further scale your business.

Read about business functions at:

  • Prospector: The first contact with your client in Outbound
  • SDR: Your Qualification Expert
  • Sales Executive: The Last Step of Outbound

The problem is that, unexpectedly, your market starts to shrink. Its customers, who rely heavily on China’s growth, ended up seeing their cashiers dwindle with the Asian giant’s slowdown.

So what should your company do?

  1. Try to increase your sales by keeping all team members;
  2. Firing new salespeople and sticking to a more conservative strategy.

If your answer is the first option, you need to be aware that there must be a change in your company’s overall strategy. If your target audience stops having money, you need to look for those who have it.

So pivoting or even adjusting prices becomes necessary.

And if your company doesn’t have the option to pivot or even cut prices, since it’s working at the margin of the profit margin, it’s necessary to lay off and cut costs as soon as possible.

So the second option becomes the most logical. But in all of these two cases, it is necessary to adapt the business goal.

Yes, even for those who have the option to pivot, it doesn’t happen overnight. It is first necessary to validate the idea in the market and this takes some time.

So the target must be adapted at least in the quarter or semester of this change. No team can stay motivated knowing they are looking for the impossible.

Unexpected layoffs and exits: their effects on the company

Every business, regardless of how well the business process is structured, will always depend on human beings.

And people have their anxieties, motivations and so on. Because of this, it doesn’t matter if your company offers the best possible working conditions. If one of your team members wants to take other flights, there is nothing that will hold him back. And that’s when the commercial manager needs to readjust the goal.

In this case, it is not necessary to change the annual goal, but as long as the team member is not replaced or the new hire is not performing the role to the right, the short-term results need to be resized.

And as an efficient commissioning model is tied to the percentage of the target achieved, it is necessary to reduce the monthly target value while the team is working with fewer people.

In the future, the gap to be reached from the target may be diluted over several months, but the important thing is not to discourage the team by asking for results that cannot be delivered.

investment entry

That’s the goal of many startups. Raise investment to be able to scale faster.

It is also at this moment that the goals must be reassessed. With more cash on hand, it is possible to expand the sales team, improve the product and greatly improve customer service.

So the company must envision the speed at which it wants to grow. If the idea is to scale quickly and the product supports a large influx of customers in the base, then the ideal is to already change the short-term goals, bringing in several prospectors, qualifiers and sellers.

In the end, spending the money to grow is something that will undoubtedly please your board and investors (when well spent, of course).

Communication is the key to managing business results

Management of business results and good team communication

One of the best management books for entrepreneurs from all walks of life is called The Hard Things about Hard Things.

In it, Ben Horowitz tells a lot about the dilemmas that a CEO goes through during his career. While reading, we realized that there is no easy path to success.

And for those managing business results, this task is even more difficult, and there are several reasons for this.

In the book, Ben says that bad business culture is marked by the following aspect: bad news travels slowly.

What’s the use of the CRO realizing that the goal can’t be hit and still keeping it, leaving the team in the dark?! It is necessary that as soon as he realizes this aspect, he goes straight to the board and CEO to see what can be done (whether it is hiring more people or adjusting the goal).

What cannot be done is not aligning with the teams the problems that the team has to reach the goal, and this applies to all members.

If there is any new tool that can increase lead generation or even impact the company’s conversion rate, the team must share it with the manager as soon as possible, so that it can be adopted.

When a problem arises on a daily basis, whether it is a misalignment between the SDR team and Sales Executives, the manager must resolve it as quickly as possible and all parties cannot be afraid to communicate what is happening.

Poor communication can mask many aspects, such as a goal that in theory would be easy to beat, but due to internal policy issues, it may be impossible to achieve.

Goal readjustment goes far beyond redefining numbers

One thing we’ve learned from business management is that there is no book or theory that can replace the practical exercise of the job.

Redefining a business goal is relatively simple on paper. But by doing this, the manager is impacting the team’s commission, the motivation of an entire company, in addition to seriously impacting the future prospects of the business.

Ultimately, what matters most when making this kind of decision is the alignment of expectations with everyone involved.

Every member of a company knows that the path to growth is fraught with obstacles. But what they, me, you and almost everyone else on earth don’t like is being left in the dark.

So, remember, any change in aspects that may impact your company’s future, such as readjustment of the commercial goal, must be communicated with the team, and all its side effects must also be presented.

Always take into account market movements such as expansion or recession, possible layoffs or even the need to change your business model when formulating a feasible business goal.

Having a motivated team willing to give blood for your company is what every commercial manager should seek, without exception.

At the end, when a sales process is well structured, a methodology is followed and everyone is well trained, it is the team’s motivation that will make you reach your super goal.

And your company, has it ever readjusted the commercial goal? If you want to share a little of your experience with us, just leave it in the comment, or if not, you can send an email to marketing @outboundmarketing.com.br

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