Part 5 - Balancing Ambition and Fairness: Effective Strategies for Target Setting and Distribution

Setting targets and distributing them among your team members is a critical aspect of a mid-level sales manager's role. Effective target setting ensures that each team member is motivated and challenged, while fair distribution prevents bias and promotes equity. Let's explore how we can achieve these goals.

Establishing Realistic and Challenging Targets

First step in target setting is to ensure that goals are realistic, and yet stretched enough which needs the team to apply themselves and get that ‘extra’ from the clients. Also important is how this target gets distributed within the team, everyone cannot have same target, but again you cannot have too much gap between targets for different team members.

• Analyze Historical Data: Use historical sales data to set benchmarks. This analysis helps in understanding what is achievable and where to push the boundaries.

• Set SMART Goals: What is SMART; Specific, Measurable, Achievable, Relevant, and Time-bound. Generally, sales targets have these ingredients. Must ensure that teams and individuals have absolute clarity on what is expected of them and in what time period.

• Be Practical: A lot of mid level managers (some National sales heads as well), tend to add an extra 10% to the target they are supposed to achieve while creating targets for the team. A 5-10% at every stage leads to ~ 30-50% extra target for the FLE, making the stretch impossible to achieve, leading to low motivation

Tailoring Targets to Individual Capabilities

Each team member brings different and unique strengths to the table. They have their own set of weakness. Tailoring targets to these individual capabilities ensures that everyone is challenged appropriately. A core need here is to understand team dynamics and know each person and their strength.

• Performance Assessments: Regular assessments are must to understand the strengths and weaknesses of each team member. Tweak the targets that that are ambitious yet attainable. Ensure fairness.

• Personal Development Goals: Align sales targets with personal development goals. For instance, if a team member is looking to improve their closing techniques, set targets that focus on closing deals rather than just generating leads.

• Adjust as Needed: Be flexible and willing to adjust targets based on ongoing performance and changing circumstances. Regular check-ins can help in making timely adjustments.

Ensuring Fair Distribution of Targets

If need for fairness is felt, then it is highest while you are setting targets for the team. Always remind yourself in being fair, you might still be accused by few of being unfair, but that’s okay. Fairness in target distribution prevents bias and promotes a healthy team environment.

• Transparent Criteria: Establish transparent criteria for target distribution. Communicate these criteria clearly to the team to ensure everyone understands the rationale behind their targets.

• Avoiding Favouritism: Be mindful of any potential biases. Ensure that targets are distributed based on performance data and individual potential, not personal preferences or relationships.

• Balance Workloads: Make sure that workloads are balanced. No team member should feel overwhelmed while others are underutilized. Use performance data and market potential to allocate targets equitably.

Monitoring and Adjusting Targets

As you progress through the month or the year, it is important that you continuously monitor the achievements / setbacks and adjust the targets. This is essential so that you do not miss out on the leading market opportunity missed during initial target creation and helps keep the team on track and motivated.

• Regular Check-ins: Schedule regular check-ins to review progress towards targets. These sessions provide an opportunity to address any challenges and adjust targets if necessary.

• Feedback Loop: Create a feedback loop where team members can voice their concerns and suggestions about their targets. This openness can lead to valuable insights and improvements.

• Celebrate Milestones: Recognize team when they hit the target individually or collectively. Recognition and rewards helps boost morale and motivate the team to keep working towards achieving bigger targets.

Endgame

• Realistic and Challenging Targets: Set goals that are achievable yet ambitious.

• Individual Tailoring: Align targets with individual strengths and development goals.

• Fair Distribution: Ensure equitable distribution based on transparent criteria.

• Continuous Monitoring: Regularly review and adjust targets to keep the team motivated.