Why is sales productivity difficult to improve?
The improvement of sales productivity has a huge impact on the value of a company to its investors. While many know how important sales productivity is, few companies know how to make this improvement happen.
Some companies issue higher quotas or lower budgets or apply new CRM software and training to improve productivity. While initiatives like these do generate productivity, it is not sustainable. Instead, the primary reason companies cannot continuously improve their sales productivity has to do with how the company manages their sales and marketing.
Because sales and marketing activities follow processes, almost all of them have the potential for improved efficiency and/or effectiveness. Through process improvements such as Six Sigma, companies can improve all of their processes and productivity.
What is Six Sigma?
Six Sigma is an overarching quality management philosophy that is applicable in businesses and industries across all domains. Six Sigma reduces variability and waste in the business as well as assists in increasing productivity. At the core of the philosophy, Six Sigma is developed around the notion that eliminating unwanted variation from the standard mean will result in more efficient, leaner, and productive processes. Additionally, Lean Six Sigma is a management tool that blends the best of Six Sigma principles with Lean Management practices. Similarly, both practices aim to reduce waste and maximize return on investment (ROI).
How will Six Sigma help my business?
The overall philosophy and developed models associated with Six Sigma can benefit your business in many ways. Here are a few ways in which your business processes can be more efficient and effective.
Six Sigma’s DMAIC model is a way for companies to use data to improve, optimize, and stabilize business processes. DMAIC stands for Define, Measure, Analyze, Improve, and Control. The DMAIC model, helps guide people through measuring current performance, finding the critical few obstacles to process improvement and then addressing them. The model can be applied to any situation and can help you find the root cause to your problem and help you embed a permanent solution.
Six Sigma also seeks to reduce waste, which in sales and marketing can include opportunities which don’t convert into sales, plans which fail due to poor definition and/or execution, or abandoned new projects or plans. Six Sigma will give organizations the skills to identify these “future failure” before they invest too much time and money.
Non-process centric market development programs merely react to market variances with a “just in time” mentality, giving rise to unexplained variables and missed targets. Employing controls, measures, and means of analyzing key performance indicators (KPIs) is the only way in which to achieve market development excellence. VizQuest implements this methodology in our proprietary revenue factory. Increasing process yields and minimizing waste, with the concept of continuous improvement in mind, are concepts that all companies should be cognizant of, and something we pride ourselves in implementing as central tenets of our methodology. To learn more about how VizQuest implements Six Sigma, read more here!