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You are here: Home1 / Customer Strategy2 / Sales and Account Management3 / How do you align Sales Director objectives with your board colleagues?
How do you align sales director objectives with the board?

How do you align Sales Director objectives with your board colleagues?

July 14, 2021/in Sales and Account Management /by Gary Lunt
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How do you align Sales Director objectives with your board colleagues?

 

Answers – multiple choice as follows;

  • Shout louder!
  • Give them more objectives than needed …
  • Be smarter with the board objectives

 

Personally, I have seen and experienced all three, but by far the best answer is to have smarter board objectives. And this requires a collaborative approach across peers, and the skilful coordination of the Managing Director. Let me take you through a real life example.

 

After many years of chasing numbers, this company appointed a new MD and there were two priorities –

  1. put in place a strong team of functional specialists
  2. align them with a common goal

In an industry that was highly regulated and extremely competitive, revenue growth was relatively easy to achieve compared to margin – this would be the key to long term success with a short term plan to get the journey started.

 

A Common Goal

The MD achieved this with setting one common goal for each functional director – EBITDA. Not individual, not functional, but company-wide.

 

A Common Approach

The MD then set about the task of how, together, the group could achieve this with one single plan. This signified the need for skilful coordination on the part of the MD, but a massively important element of collaboration by the functional directors.

 

The Sales Approach

The Sales Director was responsible for setting key objectives that set the direction for revenue, distribution points and gross margins. This would be the foundation for establishing the capabilities of the company to supply at a cost to serve that met the overall objective of EBITDA. In this case, the key objective were;

  • Share of Distribution Points
  • Share of Purchasing per Distribution Point
  • Gross Margin per Distribution Point

This was supported with a segmented approach to the customer base, applying the right type of commercial resource to the channels that were served, and those that were strategically better placed to achieve the objectives.

 

Reward & Recognition

In order to reward the right behaviours to achieve the outcomes, a coordinated reward scheme for the sales roles was introduced that recognised performance totally aligned with the company’s objectives. In this case, reward for new business and customer profitability were key.

 

This approach would be successful for many years until an industry shifting event happened which required a change of emphasis from Sales to Procurement – however the approach was just as relevant it just required a strategic shift of focus.

 

So, the big question for you if you are a sales director – are you on your own, or aligned with your colleagues?

 

Does this sound familiar? Talk to Gary Lunt, FMCG Specialist

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Gary Lunt
Gary Lunt
Gary has significant commercial experience gained with FMCG companies such as Diageo, Reckitt Benckiser, GSK, Unilever and Cadburys. He has also held senior positions within the healthcare sector both in the UK (AAH Pharmaceuticals) and in Germany (Celesio AG).
Gary Lunt
Latest posts by Gary Lunt (see all)
  • How do you align Sales Director objectives with your board colleagues? - July 14, 2021
  • How do you identify Customer Centricity in the Foodservice Supply Chain? - May 14, 2021
  • What do you call a FMCG Consultant? Trouble-shooter, Problem Solver and Magician! - April 29, 2021
Tags: B2B Customer Management, Blog, Distributor Management, Distributor Management & Development, FMCG, sales management, Sales Objectives
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