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Examples of KPIs and how to implement them. We evaluate the results of the work of the Kpi department in sales examples

Only 5% of employees in the company work perfectly, about the same number - poorly, and the rest need certain rules of the game. One of these rules is the KPI system. Market experts say that the introduction of KPI in the enterprise allows you to increase profits by 30%. Let's figure out how to achieve these results.

Oleg Izmailov,

Executive Director, Symbol-Avtomatika

    Implementation results and staff motivation in the sales department

Of course, each company has its own experience and methods of doing business, it is likely that they are efficient and progressive, so if you achieve your goals, then nothing needs to be changed. It is also unlikely to be implemented KPI for sales manager in a small enterprise where the number of employees does not exceed 30 people and the manager always has the opportunity to meet with everyone once or twice a month, clarify goals and adjust the ways to achieve them.

Key Performance Indicators(key indicators performance, KPI) is a system that gives the company the opportunity to assess its condition, helps in analyzing the implementation of the strategy, and also allows you to monitor the business activity of employees in real time.

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The implementation of the KPI system will require serious time, emotional and physical effort on the part of managers. Objectively, you will encounter mistakes and miscalculations, with possible demotivation of employees and even layoffs. To carry out changes, the efforts of one leader are not enough; there must be a team of like-minded people ready for change. Therefore, if such a team cannot be formed, then it is not worth starting to change.

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KPI for sales manager

In 2010, the management of our company decided to introduce KPIs in the sales department in order to more predictably receive funds and grow the company. For this, there is an objective need, since the simple question “What sales forecast for the next 2-3 months with a probability of execution of 75% can the commercial department give?” managers could not give an answer even after an hour. All work was unpredictable, and the main task that the company had to solve was to achieve a planned economy.

To understand whether it is necessary to implement a KPI system in, you can apply a simple managerial decision-making scheme - analysis and evaluation of the pros and cons. By pluses we understand the advantages of implementing the system, by minuses we mean the disadvantages. A prerequisite for work at this stage will be the substantiation of the evaluation points, on which the need for the implementation of a particular criterion is built.

If the criterion is important in terms of advantages or disadvantages, then we evaluate it as one point. If the organization has already implemented the processes associated with the benefits, or these benefits are not obvious, then we evaluate them as zero points. We also evaluate the shortcomings as zero points if they are not critical for the organization or they can be compensated.

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Development and implementation of the KPI system

The task of developing and implementing a system of key performance indicators for a company clearly falls under the definition of a project, and in this case, the first step is to form a project team. The process consists of ten successive steps.

The work in the first five stages is based on the principle of cause-and-effect relationships: the achievement of the organization's goal should be a consequence of the achievement of the goal by each employee. In fact, after the fifth stage, we receive a draft KPI of each participant in the process, since these are the results of the work that we want to achieve and which lead to the achievement of corporate goals.

When defining the goals and objectives of each employee, it makes sense to request information from the field on how exactly and with what tools this employee will contribute to the common cause. Such an approach would make it possible to introduce KPIs with less time losses and smooth out the negative reaction of the team to the transition to a new system.

At the next stage, it is necessary to adjust the company's business processes so that they contribute as much as possible to the implementation of the required actions. At the same time, it may turn out that for various internal and external reasons (lack of resources, lack of employees with the necessary level of knowledge and skills, industry development), the required business processes cannot be built or the costs of their implementation will be incommensurable with the result.

In this case, at the sixth stage, we return to the initial goal, correct it, and go through the first five stages again.

The seventh stage is the development of a system of employee motivation. It is important to remember here that remuneration and other tools (bonuses, non-material incentives) should guide each team member to perform actions and solve priority tasks for the company.

At the next stage, when communicating the essence of changes to employees, it is important that most of them are involved in carrying out active changes, otherwise even the best of the developed systems will forever remain on paper.

The last stages are implementation and feedback.

The system can be launched in test mode for two to three months with a gradual transition to full-fledged operation either in the entire company at the same time, or in separate divisions. Of course, in order to maintain the relationship of goals between the various services of the enterprise, it is preferable to start all at once.

But if you decide to start with leadership units and gradually adjust other departments to them, then you need to understand that such an approach can only be implemented in client-oriented companies that offer the client the maximum of what he needs, and not what they can do.

In this case, one should avoid KPI definitions the sales department according to the scheme described above, but at the same time, at the third stage, it is necessary to create the requirements of the commercial service for other divisions of the company according to indicators interconnected with them.

KPI in the sales department: mistakes and pitfalls

Setting unattainable goals. Of course, the goals of the organization must contain a challenge, but unrealistic goals can stall the entire system and even discredit the very idea of ​​​​KPI (the probability of achieving the goal should be at least 70–80%).

Inconsistency between the internal indicators of the employee and the indicators of departments. For example, if a mandatory assortment includes many low-margin products, then the sales manager's indicator of "achieving sales complexity (sales of a certain assortment) of 25% of customers" may conflict with the indicator of "achieving a marginal return on sales of 20% in 2012".

Excessive complication of indicators. It can take a long time to create a perfect KPI, but the development of simple indicators would be much faster. There is always room for improvement in any system.

Too many indicators. It is believed that a person is not able to control the execution of more than seven processes (± 2) at the same time. One may not agree with this, however, during the first implementation of the KPI system, from three to five tasks can be set for an ordinary employee, and from six to eight for a manager.

In the future, when the system is fully operational, the number of tasks can be changed in one direction or another, depending on the specific capabilities of each employee. For example, today in our commercial department, the sales manager has five KPIs: sales volume, new customers (buyers), cross sell (cross-sales) with up sell, search and support of complex projects, holding (organization) of technical seminars.

Development-related performance indicators are missing. The main task of the company's leaders is to ensure its profitability in the long term (unless, of course, the goal is "even a flood after us"). Therefore, there must be KPIs related to both operational and strategic goals. For example, the head of the department has the indicator “establishing friendly informal relations with Y customers”, and the sales manager has the indicator “conducting N training seminars on the product for employees of regular and potential customers”.

Implementation of a system incomprehensible to employees. Most employees are afraid of change and initially see it as the possibility of reducing their own income. Get feedback and remove the main part of the questions before the start of implementation.

The absence of a simple mechanism for calculating the achievement of KPI for an employee. The complexity of calculating KPI can negate the positive effect of the implementation. If an employee cannot independently assess the degree of KPI achievement in real time, the system will not bring the expected result. Today, at the end of the month, each of our employees is sent a KPI plan for the next month.

Thus, he is mentally prepared and tuned in to work, understands and knows what he must achieve. At the initial stage, the plan was sent out in the first days of the current month, and the specialist lost his “setting for the goal”, he needed time to adjust.

Lack of a mechanism to support the KPI system on the part of managers. A decrease in attention from the management will convey to the company's employees the idea that all this is not very necessary, not important. Therefore, it is necessary to soberly assess in advance your readiness for time and material costs at the initial stage, the determination to bring the transformations to the end and support them in the future. Implementation of changes also requires a certain will and firmness. It is impossible to allow the well-known principle "the severity of laws is compensated by the non-obligation of their observance" to be realized.

  • KPI (Key Performance Indicators). How to implement a KPI system in a company

Results and staff motivation

A good KPI system should contain as many built-in automatic incentives as possible that ensure the attention and effort of employees in the right directions.

In our time, the most common and effective tool of motivation is monetary reward.

1. There must be a clear, transparent relationship between the bonus and KPI for the employee. The total amount of the employee's income must be broken down into parts, one of which will be related to the achievement of KPI. It is important to remember here that any system that allows for double interpretation of results will demotivate the team.

2. Bonuses should be associated only with those indicators that the employee can have a direct impact on. It is clear that the increase in the overall level of remuneration in the organization is associated, among other things, with an increase in net profit. And although each employee directly or indirectly affects the change in the company's profit, you still should not associate the secretary's or loader's KPI with the net profit.

3. The weight of a specific KPI should correspond to the size of the bonus for its achievement. The goals that one employee faces may be of different importance for the company, which must be reflected in the amount of the bonus for achieving a particular KPI. If for achieving one indicator the bonus is 1000 rubles, and another 100 rubles, then the employee is more likely to achieve the first indicator in the first place.

4. The premium must be substantial. Award for specific indicator should be tangible. Otherwise, the achievement of this indicator from month to month will be lame. A significant amount is at least 5% of the employee's income.

For example, by entering the weight of task 1 in terms of sales volume of 20%, we got underfulfillment of the plan, as managers focused on performing another task - conducting technical seminars (as it is easier to complete). It was necessary to make an adjustment and increase the weight of the sales task to 40% to obtain balanced indicators.

1 Each task assigned to an employee has its own weight as a percentage, the sum of the weights of all tasks is 100%. The KPI target is a benchmark for normal work, but overfulfillment is reflected in bonuses. The premium can also be calculated with a reduction factor.

KPIs for Sales Managers

We will summarize the information received and develop KPI for the sales department. As an example, consider a wholesale trading company whose main goals are to increase market share, increase profitability and increase the number of customers. Clarification about the company profile is made to use specific terminology: sales, shipments, outlets.

The table shows options for possible KPIs aimed at achieving one or more goals of the organization. A specific set of KPIs for an employee should cover all the goals set for him, but at the same time not be redundant (an indicator is enough for each goal).

Also, KPIs can be used interchangeably. For example, if the head of the sales department does not have access to information on sales margins, instead of the indicator “increase in the marginal income of each employee of the department by 40%”, you can take the indicator “increase in revenue of each employee of the department by 40%”.

Or for an active sales manager, the indicator “fulfillment of a personal sales plan” is interchangeable with the indicator “ensuring sales growth by 25% compared to the same period last year.”

In conclusion, I would like to remind you once again that the KPI system imposes serious obligations and requires additional emotional and physical efforts and time from the management.

It is naive to believe that KPI after launch will turn into a perpetual motion machine. This is an inertial system, which is constantly affected by the force of friction and to which the leaders are obliged to constantly impart energy. Ready? Then do not hesitate, go for it.

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KPI evaluation of sales managers

Kirill Tikhonov, Director of Small and Medium Business Development Department, Promsvyazbank

Evaluating the work of managers by quality KPIs makes it possible to assess the potential of each individual employee and possible ways to develop his career. We have built our own efficiency determination process, which allows us to accumulate information and make management decisions.

The motivation system for employees who directly interact with customers includes a quality factor - an integral indicator that is calculated according to a certain algorithm as a result of checking the point of sale. It depends on how the manager greeted the client, whether he offered additional services, and so on.

If this ratio falls below the minimum allowable value, for example 90%, the employee's bonus is adjusted. Of course, such an approach motivates in terms of improving the quality of consultations and service.

We also regularly conduct interviews with existing clients, for example, on issues such as their satisfaction with working with us on foreign exchange, lending and other banking products.

Such an assessment gives us the opportunity to identify the strengths and weaknesses of employees, select the necessary training programs for them, and determine the prospects for further development.

Information about the author and company

Oleg Izmailov graduated from the Moscow Engineering Physics Institute; Associate Professor, Lecturer, Candidate of Physical and Mathematical Sciences. He has many years of experience as a commercial director. As Executive Director since 2011.

"Symbol-Automation" founded in 2006. Distributor of global manufacturers of industrial equipment of the Industrial Ethernet standard. Since 2011, it has been one of the top ten global distributors of RuggedCom (Canada, the world leader in network equipment for the energy sector). It has its own brand "Simanitron". Official site - www.s-avt.ru

Promsvyazbank founded in 1995. One of the leading Russian private banks with assets of 611 billion rubles. and own funds (capital) 73.8 billion rubles. as of 07/01/2012, according to IFRS data. The bank's network includes 295 offices. Official site - www.psbank.ru

The key results of the work of sales managers are very dependent on both the style of work and the department in which the employee works.

Let's consider in turn the key divisions in which managers can work, and the KPI for sales managers in each of these divisions. I immediately draw your attention to the fact that building all commercial work with clients within the framework of one department for most businesses will be a fatal mistake. Since in the process of working with clients you have to solve many significantly different tasks, for example, attracting clients, ongoing work with them, strengthening and developing relationships with these clients, in most cases it is more expedient that the structure of your company's commercial divisions consists of several sales departments with different functions and goals of work. Each of these departments must have a dedicated leader, and a professional B2B active sales department must have at least two managers working in a hierarchy. For example, the head of the sales department and his deputy.

Now back to listing the key sales departments and the KPIs of their sales managers.

Key KPIs:

  • KPI for the sales manager of the B2B active sales department;
  • KPI for the sales manager of the sales department on the incoming stream;
  • KPI for the sales manager of the VIP department;
  • KPI for the sales manager for inter-regional sales according to the scheme of traveling teams;
  • KPI for business development manager;
  • Award for team performance of the sales department.

KPI for the sales manager of the B2B active sales department

The key KPIs here can be the number of first or cold calls made to customers during the day. Separately, you can analyze the number and duration of calls, as well as the duration of conversations, how many of these conversations allowed you to enter into negotiations with key persons, and as a result, how many meetings with clients were scheduled from these calls. A separate KPI block is repeated calls and conversations. And also the number of appointments among repeat calls.

Key KPIs at meetings. This is the number of customer questionnaires filled out as a result of meetings with clients, passports of objects or technical assignments, the number of technical assignments agreed and approved with the client, the number of meetings organized and held with leading technical specialists and experts from the seller's companies. Number of exhibited commercial offers contracts and invoices sent to the client, signed contracts and received payments.

On my own behalf, I’ll clarify that the most reasonable thing is to provide the client with contracts, invoices, and, if necessary, commercial offers directly at personal meetings in order to be able to answer all the client’s questions and immediately reach an agreement with him. Or know that you need to adjust your proposals so that such an agreement can be reached in the future.

Conduct an audit

In general, as we can see, the key KPIs for active sales managers are concentrated in two groups: the activity of sales managers and its results, including turnover and simplified gross profit on concluded and paid deals.

KPI for the sales manager of the sales department on the incoming stream

In the case of this department, KPI for sales managers, on the one hand, is similar to those for managers from the previous paragraph, but on the other hand, a system for analyzing the effectiveness of processing the incoming flow and converting or converting incoming calls into transactions must be built .

This analysis is somewhat complicated by the fact that most transactions, especially the more serious and large ones, take time. And it turns out that in one month there is an incoming appeal, and only after a few months or even years this appeal leads to the conclusion of a contract.

In addition, one referral can lead to a chain of sales where the first deal is small, but the next sale will be much larger and more profitable.

Nevertheless, each incoming request should always be processed by a specific employee, and in this way you can track how many such requests got to him, and what part of these requests ended in contracts. Ideally, you will not only be able to see the situation every month, how much you spend on advertising and PR, and how much income you receive from contracts for incoming streams, but you can see the details of sales efficiency, that is, conversions for each individual employee who gets incoming requests, and for each type of goods or services that are significantly different from each other in the assortment of your company, for which requests can be received and transactions can be concluded.

Interestingly, requests can come in on one topic, sometimes not directly related to contracts at all, but as a result of high-quality work with a client, these non-commercial requests lead to very tangible sales and income.

Again, which of your employees converts such requests into sales with an efficiency of 40%, and which - with an efficiency of 5%. And what's the matter? Is it that the employee who converts them into deals with an efficiency of 40% is just lucky? Or maybe he is lucky from month to month? Or maybe you should fire the employee who botches 95% of requests? Or at least not give it incoming requests, but put it on active sales so that he understands the value of customers who already want something, and learn how to turn this desire into closed deals.

KPI for the sales manager of the VIP department

If we talk about the key KPIs for the sales managers of the VIP program divisions, then the first result of their work is the number of completed VIP questionnaires based on the results of meetings with clients during the VIP program. Working with clients in the same city where the department of this company is located, you can hold 15 personal meetings on the road to the client lasting an hour or more each, and submit the corresponding number of completed VIP questionnaires based on the results of these meetings.

The second key parameter is the number and also the percentage of clients where there are hidden and revealed problems in working with these clients, and also control over the correction of these problems.

The third KPI block is related to additional deals. I remind you that the easiest and most enjoyable thing is to sell to clients with whom you work under the VIP program.

KPI for the sales manager of the inter-regional sales department according to the traveling crews scheme

Usually, the main parameter that needs to be controlled here is the number of days that employees spend traveling to the customer’s territory, in this case, other cities, and the number of meetings scheduled and held with clients each day of such trips.

Conduct an express audit of the sales department on your own according to 23 criteria and identify sales growth points!

Conduct an audit

In general, I would say that for this style of inter-regional sales, key KPIs for sales managers might look like this: they should spend half their working days or more on the field, a good intensity of two-thirds to three-quarters of their working days on the road. If on average each meeting with a client takes an hour, then you need to schedule at least four to six meetings in advance for each day on the road to other cities in order to hold at least 2-4 meetings. If all meetings remain in force, then it is also quite possible to hold six meetings in different parts of the city for an hour or more in a full day. All those who were engaged in active commercial work not only in their city provide such results for months and years. And I myself am no exception.

Plus, one more KPI block, these are also sales results. I note that for management teams that are constantly on the road, a good strong commercial back office is needed, which could bring to a result agreements that are concluded with clients, control sending and receiving required documents, payments and fulfillment of obligations to customers.

KPI for business development manager

Another popular question: what should be the KPI of a sales development manager? It all depends on which department the development manager works in and what functions he has.

If we are talking about attracting new customers, that is, developing a customer base, then the KPI of a sales development manager is the same as the KPI for a sales manager, an employee of the active sales department.

If we are talking about the development of sales with the existing client base, then I would recommend building this work as part of the VIP program, which means that KPIs will be the same as for employees of the VIP program department.

I would also like to note that it makes sense to tie key KPIs based on the results of concluded contracts to the income of a sales manager. More precisely, the sales manager should receive a salary, and in addition to the salary - a commercial percentage, bonuses or rewards from the key results of his work, that is, his own key KPIs.

At the same time, I would advise in business where it is possible not to tie the possibility of discounts on payment to sales managers directly on the turnover of the money attracted by them. It would be much better and more appropriate to tie the salary of a sales manager to such a key KPI as a simplified markup or margin, or gross profit from payments received on transactions concluded by him.

Also, the fact of shipment of this product without the fact of payment does not at all deserve a bonus. On the contrary, if the goods are shipped first, and then there is still no payment from the client at the appointed time, penalty interest may begin to drip daily for late payment by the client.

Sales team performance awards

Finally, it is very important to take into account in the sales manager's payment system not only the achievement of his personal results or key KPIs, but also the results for the department. First of all, this is the implementation of the plan for the department. Thus, in a well-balanced system of remuneration for the sales manager, the merchant receives a salary, interest and bonuses from personal results of work, tied both to a simplified margin or gross profit from payments from his clients, and to the percentage of his personal plan. And plus, he has either a bonus or a multiplier, if the plan for the department is fulfilled. In my practice, I like to use three sales plans per department, minimum, norm and maximum. The higher the level of implementation of the plan can be achieved, the more multiplying factor or bonus each employee of the department receives.

© Konstantin Baksht, CEO Baksht Consulting Group.

The best way to quickly master and implement the technology of building a sales department is to visit K. Baksht's sales management training "Sales System".

KPI (Key Performance Indicators) - "key performance indicators", but more often translated as "key performance indicators". KPI is one of the tools with which you can analyze how effectively the staff works to achieve the company's goals.

KPI indicators are often used by larger companies (not where the owner, director, seller and loader are the same person), but vice versa when the company has a large number of employees and branches. The use of "kipiai" greatly simplifies the control of the efficiency of all departments of the company. Having key performance indicators, we get the opportunity to manage the process and make changes to it. Set goals for staff and motivate them to achieve them.

Let's look at an example of key performance indicators. You are the owner of a large store household appliances and you have 12 sales managers on your staff. The performance of each manager for a month can be assessed according to the following criteria:

  • what % of the customers the manager interacted with made a purchase;
  • average check clients;
  • fulfillment of the sales plan (for example, the minimum bar for a month is 350,000 rubles, and wage manager will depend on how much% he overfulfills the plan);

If, for example, you need to sell blenders of a certain model, you can set a plan for each manager of at least 5 units, if more, then the seller receives 3% of its value from each “extra” unit. Thus, the goal is achieved to sell a certain product and motivate managers for this. As practice shows, the optimal number of KPI criteria for one employee is from 5 to 8.

2. Types and principles of KPI

Types of key performance indicators:

  • KPI of the result - quantitative and qualitative indicators of the result;
  • Cost KPI - the amount of resource costs;
  • KPI of functioning - how the execution process corresponds to the established algorithm;
  • Performance KPIs are derived indicators that characterize the ratio of the result obtained and the time spent to obtain it;
  • Efficiency KPIs (performance indicators) are derived indicators that characterize the ratio of the result obtained to the cost of resources.

There are principles to follow when developing key performance indicators. The cost of measuring performance indicators should not exceed the managerial benefit from using the indicator. After all, you can't hire a person who will count the number and duration of the manager's calls, the result will not justify the costs. For a more accurate result and the possibility of comparison, the indicators should be measurable and as simple as possible, understood by each unit in the same way, in order to avoid misinformation. And, most importantly, that KPIs are necessary, if we do nothing based on the results of their measurement, then in this case they are meaningless.

3. Pros and Cons of KPIs

Key benefits of the KPI include:

  • fairness, transparency and comparability of results (management and staff see who works and earns how much);
  • adjusting the work of an employee according to a lagging indicator;
  • involvement of personnel in achieving the goals of the enterprise;
  • quality control of the performance of duties.

Despite all positive sides KPI systems - it is not universal. Not all indicators in the work of personnel can be measured quantitatively, and therefore each business has its own ways of assessing efficiency, and finding them will require a lot of time, labor and finances.

4. How to calculate KPI. Example

There is no single formula for calculating KPI, since each company has its own specifics and, therefore, its own “kipiai”. Let's take an example of the calculation of the salary of a sales manager, taking into account his KPI in the Kotelok online store. The rate is 7,000 rubles. + 2% of personal sales (800,000 * 0.02 = 16,000 rubles) + bonus for fulfilling the plan by the number of new customers (2,000 rubles) + bonus for fulfilling the enterprise plan (for example, the plan is 100% completed - 5,000 rubles , by 70% - 3,500 rubles) in our case, by 80% - 4,000 rubles. In total, at the end of the month, the manager will receive a salary of 29,000 rubles. This scoring system motivates managers to sell to existing customers and attract new ones.

5. What is KPI in sales

In the field of sales, the main key performance indicators for the sales manager and the sales department are:

1. Sales volume. The manager is set a plan for a certain period of time (month, quarter, year). For example, in March, the manager must make sales for 1,300,000 rubles.

2. Number of sales. The number of customers who made a purchase (number of receipts).

3. Traffic. The number of customers who have learned about your product are potential buyers. Of course, attracting traffic is the task of marketers, but the seller himself can also influence the flow of customers, for example, using word of mouth.

4. Average check. Implemented to encourage the manager to sell additional goods. For example, purchase a heat-resistant glass plate or baking dish for the oven.

You can develop a KPI system on your own, but this will require a lot of effort and eat more than one dog. Most large companies still prefer to entrust the construction of the Kipiai system to professionals with extensive experience in this field. If you need help implementing KPIs in your company, please contact us, we will be happy to help!

KPI is a performance indicator that allows you to objectively evaluate the effectiveness of the actions performed. This system is used to evaluate various indicators (the activities of the entire company, individual structures, specific specialists). It performs not only the functions of control, but also stimulates labor activity. Often, a pay system is built on the basis of KPI. This is a method of forming a variable part of the salary.

KPI Key Performance Indicators: Examples in Excel

Stimulating factor in the system KPI motivation- monetary reward. It can be received by the employee who completed the task assigned to him. The amount of bonus / bonus depends on the result of a particular employee in the reporting period. The amount of remuneration may be fixed or expressed as a percentage of salary.

Each enterprise determines key performance indicators and the weight of each individually. The data depends on the tasks of the company. For example:

  1. The goal is to provide a product sales plan in the amount of 500,000 rubles per month. The key indicator is the sales plan. Measurement system: actual sales amount / planned sales amount.
  2. The goal is to increase the amount of shipment in the period by 20%. The key indicator is the average shipment amount. Measuring system: actual average shipment / planned average shipment.
  3. The goal is to increase the number of customers by 15% in a certain region. The key indicator is the number of customers in the enterprise database. Measurement system: actual number of clients / planned number of clients.

The company also determines the spread of the coefficient (weights) independently. For example:

  1. Implementation of the plan less than 80% is unacceptable.
  2. Implementation of the plan 100% - coefficient 0.45.
  3. Implementation of the plan 100-115% - a coefficient of 0.005 for every 5%.
  4. No errors - coefficient 0.15.
  5. There were no remarks in the reporting period - coefficient 0.15.

This is just a possible option for determining motivational coefficients.

The key point in measuring KPI is the ratio of the actual indicator to the planned one. Almost always, an employee's salary consists of a salary (fixed part) and a bonus (variable / variable part). The motivational factor influences the formation of the variable.

Let's assume that the ratio of the fixed and variable parts in the salary is 50 × 50. Key performance indicators and the weight of each of them:

We accept the following values ​​of the coefficients (the same for indicator 1 and indicator 2):


KPI table in Excel:


Explanations:


This is a sample KPI table in Excel. Each enterprise makes its own (taking into account the peculiarities of the work and the bonus system).



KPI Matrix and Example in Excel

To evaluate employees on key performance indicators, a matrix, or agreement on goals, is drawn up. The general form looks like this:


  1. Key indicators are the criteria by which the work of the personnel is evaluated. They are different for each position.
  2. Weights are numbers in the range from 0 to 1, the total sum of which is 1. They reflect the priorities of each key indicator, taking into account the company's objectives.
  3. Base - the allowed minimum value of the indicator. Below the baseline - no result.
  4. The norm is the planned level. What an employee must do. Below - the employee did not cope with his duties.
  5. A goal is a value to aim for. Above the norm, which allows to improve the results.
  6. Fact - the actual results of the work.
  7. The KPI index shows the level of the result in relation to the norm.

Formula for calculating kpi:

KPI index = ((Fact - Base) / (Norm - Base)) * 100%.

An example of filling out a matrix for an office manager:


The performance coefficient is the sum of the products of indices and weights. Employee performance evaluation is visually shown using conditional formatting.

KPI (Key Performance Indicators) - key performance indicators. KPI in sales helps to determine the quality of work not only of each employee, but of the company as a whole. It is KPI that should be the only measure of the cost of labor and an indicator of the effectiveness of each branch / department / division / working group.

Knowing what KPIs we want to achieve from sales managers in general, we can manage the entire sales process: make changes to the marketing funnel, influence efficiency and improve the staff motivation system.

Performance indicators should be measurable, simple and equally understandable to all, whose result will be determined by a specific indicator.

Main types of KPI

  • KPI of the result - quantitative and qualitative indicators of the result
  • Cost KPI - the amount of resource costs
  • KPI of functioning - how the established processes are observed
  • Performance KPI - the ratio of invested resources to the final result

The calculation of KPI should be justified by the benefits of its measurements. These indicators should really influence the sales process and depend on the actions of specific people.

KPI in sales: 7 main landmarks

KPI in sales: calculation of indicators

You must realize that great results come from small efforts made systematically and in large numbers. So it is with deals. A lot depends on how many calls are made on a daily basis, meetings are held, commercial offers are sent, invoices are issued, etc.

That is why the number of all these daily actions must be calculated in advance, communicated to managers and adapted for the KPI system in the sales of a particular company. It is quite obvious that it is clearly not enough to control only what happens at the input (), and then at the output (payment).

How to calculate performance indicators?

1. Collect data: the share of profit in revenue, the value of the average check, from application to payment, conversion rates between stages.

2. Analyze the results of previous periods, calculate the potential return on planned marketing campaigns, take into account seasonality and other external factors in order to correctly predict profit. After all, it is this figure that determines the indicators of daily activity for a full-fledged KPI system in sales.

3. As soon as you figure out the profit, proceed to simple mathematical calculations. And the first thing you get is revenue. It is easy to calculate when you know the forecast profit and its share in the turnover.

4. Revenue calculated? Now let's understand how many payments must go through to close it. This is where we need the average check indicator. Let's divide the amount of revenue by it: the number of successful transactions = revenue / average check.

6. After that, by intermediate conversion between stages, you will be able to find out total actions that the department will have to perform for the entire planning period in order to achieve the planned profit.

8. Redistribute the load among employees depending on their personal conversion.

9. Compare the obtained results with the labor standards of the industry (we give them below). If what you got is within those standards, then it means you were realistic.

10. We introduce some of the most "influential" indicators of daily activity as key performance indicators.

What are the labor standards?

Let's give some guidelines. From them, like a litmus test, you can check how realistic you were in your forecasts and requirements. The number of meetings and calls varies from segment to segment and depends on whether your salespeople combine these 2 types of activity.

Number of meetings

  • 25 meetings in the FMCG sector
  • 8 meetings in retail
  • 2 B2B meetings provided there are no calls
  • 1 meeting in B2B if there are calls

Number of calls

  • 250 calls in retail
  • 150 calls in the mass market
  • 100 calls to B2B, SMB sector
  • 50 calls to B2B, medium and large business sector
  • 15 calls per day with appointments

If you use the information above, you can set your own performance metrics: average check, traffic for the marketing department, daily activity of managers, conversion from lead to deal, etc.

KPI in sales: implementation in business

Such innovations in the company need to be implemented only when you have created a transparent and understandable system for evaluating KPI in sales. Otherwise, you may encounter stiff resistance from managers to work according to the new rules, up to and including refusal to work and dismissal.

It is necessary to convey to subordinates the benefits of such implementations. Managers must clearly understand how they will be measured, and what exactly they themselves can do to influence these indicators.

The seller should directly influence the KPI. For example, if you set a KPI for a company profit manager, then this is unlikely to somehow motivate an employee to work better.

Simply because the seller is not physically able to influence this indicator. After all, KPI for profit is influenced by many factors that do not depend on the manager. For example, the margin or the quality of the built marketing funnel.

But, for example, the amount of revenue or the average check is quite understandable KPI, which depends on the efficiency of the seller.

Why implement KPIs:

  • Employee motivation
  • Creation of a transparent system for evaluating results and remuneration
  • Involvement of managers in achieving company goals
  • Quality control of sales processes

KPI in sales: motivation system

In companies, there are two ways to stimulate staff: material () and intangible

But such a tactic would be wrong. After all, the company has the task of selling the entire range, developing and expanding the client base, working to order (more high price). Therefore, it will be correct to establish key performance indicators that will help to solve the listed tasks. It could be:

  • Sale of a certain range of goods
  • Increase in the number of clients
  • Increase in the average check
  • goods on order.

You will get even more ideas and examples on this topic on ours.

We've covered the main KPIs that your managers should be judged against. Review your standards for assessing the quality of work and the system of employee motivation. Implement the necessary changes in your business.