Follow my path: How does a baseball GM measure the performance of his players? Batting average, runs batted in, home runs are the basics, Followed by more esoteric stats such as RISP, OBP, DICE, and GIDP. The masters of the use of statistics in measuring talent have been Epstein of the Boston Red Sox and Brian Cashman of the New York Yankees, Not coincidentally, both among the most successful GM’s. Although some may argue that you need to have an eye for talent, no one can dispute that ultimately it’s the stats that gets a player into the Hall of Fame. Likewise, an organization must be able to accurately measure the performance of its salespeople to retain the Hall of Fame salespeople and cull out the “Mendoza’s”.

In the remodeling business and particularly with regard to remodeling salespeople, we can all agree on the basic measurement statistics: sales volume, gross margin and commissions earned. But are those stats enough to understand what is happening within your sales operation? Is your top salesperson really operating at max? Is your poorest performer really that bad? Which salespeople are maximizing the return on your advertising dollars? Are they the right fit for the sales role? Am I coaching/managing them properly? Might they be better suited in another role in your business?

With any measurement system, accurately capturing data is most critical in providing reliable information. This statement goes way beyond the proverbial “garbage in, garbage out”. It is not enough to just put in “good” information; you have to be assured that you are putting in “all” relevant information, all the time. If your system does not require you to put in all relevant data, than you cannot rely on your statistics. For instance, does your information system require you to capture your client’s information? Does it check to see whether the client even existed in the first place, so you don’t end up with duplicates? Does your information system require that every lead must have a source? Every sit resulted? Every set appointment acknowledged? Track every step an employee took to sell the job?

When you can gather these data points you now can look beyond the “batting averages and home runs”. You can understand that even a high commissioned salesperson can be even more productive. You can see whether some efforts are mediocre or maybe you lowest producer may simply be challenged within selling specific jobs? Can geography play a role? Whatever it may be, when the numbers substantiate what you believe, it’s easy: YOU ATTACK THE ISSUE

Before you round the bases….

Before you choose a CRM Solution, you need to set your Goals with buy-in from all parties involved. When setting a goal, it must be….

• Discrete – Stand-alone and doesn’t depend on other factors
• Quantifiable – Can be reduced to numbers and other specifics
• Action-Based – Specific internal actions that may change and have a major impact on the outcome

Example: ”I want CRM to increase sales” is a poor goal. Saying “I want CRM to help me increase sales-dollar volume by 20 percent in the next 12 months” is quantified and discrete. The action-oriented part might be something like, “I’m going to use CRM to help me increase sales-dollar volume by 20 percent in the next 12 months by doing A, B and C.” Your goals should emphasize outcomes, not process. Increasing the number of sales calls is probably good. Increasing sales volume is much better.

Steps to take:

1. Analysis: Goals don’t exist in a bubble. Understand your current situation…where you are weak and where you are strong
2. Quantify Your Goals: Determine how you will measure your progress
3. Metrics: Understand the measurements used to track your progress

“I have learned and been educated that you can challenge your perceptions and that, if you come across some statistics that, essentially the end game is there. A number of statistics that I’ve learned through people like (Yankees director of quantitative analysis) Mike Fishman that have opened my eyes, that have led me to understand that certain players aren’t necessarily what you perceive them to be. And it’s prevented me from making acquisitions and saving me from losing a certain prospect as well as taking on money that would have been a waste that earlier in my career I would have done.” - Brian Cashman – General Manager, New York Yankees