Who's Your Most Valuable Salesperson? How to Forecast Performance - and then Tailor Training and Incentives

Who's Your Most Valuable Salesperson? How to Forecast Performance - and then Tailor Training and Incentives

Author: 
Kumar, V.
Publisher: 
Harvard Business School Press
Date published: 
2015
Record type: 
Responsibility: 
Sunder, Sarang, jt. author
Leone, Robert P., jt. author
Journal Title: 
Harvard Business Review
Source: 
Harvard Business Review, Vol. 93, No. 4, April 2015, pp. 62-68
Abstract: 

Conventional salesperson appraisals only measure previous performance, which do not predict how an individual will perform in the future. As a result, underperformers may be overvalued and star performers may be undervalued. Firms can use statistical techniques to calculate future value, linking performance with the forms of incentives and training each sales representative has received. Firms should quantify the effects of incentives and training, estimate future profits, and subtract the cost of the incentives and training to obtain a representative's future value. Tailor rewards and instruction based on whether the salesperson is incentive-driven or training-driven. Reallocating incentive and training investments boost future value and have a positive impact on revenue.

Language: 

CITATION: Kumar, V.. Who's Your Most Valuable Salesperson? How to Forecast Performance - and then Tailor Training and Incentives . : Harvard Business School Press , 2015. Harvard Business Review, Vol. 93, No. 4, April 2015, pp. 62-68 - Available at: http://library.au.int/whos-your-most-valuable-salesperson-how-forecast-performance-and-then-tailor-training-and-incentives