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InSights - What you didn't know you didn't know

Applying TQM Techniques To Sales

07-May-15 2:03 PM

Applying TQM Techniques to Sales | Chally Group

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Putting the right sales people in the right sales jobs using measurable, predictable, and actionable
productivity analytics technology.
Six Sigma, the data-driven methodology commonly used to eliminate
defects based on standards, measurements, and repeatable systems
and processes, has provided undeniable cost reductions for
organizations around the world by eliminating waste and improving
productivity. So why hasnt this TQM (Total Quality Management)
concept of measurable and predictable error reduction been applied
to Sales Force Management? TQM requires a system of precise
measures objective and accurate enough for statistical analysis. By
contrast, the measurement of sales force performance typically
involves subjective and overly-general data that proves to be too
fallible to support the level of accuracy that TQM requires.

TQM EVEN HELPED

HOLLYWOOD
Imagine using the 80/20 rule as it now applies, to the
Hollywood mantra of hit-driven economics: the top 20% of films
will make virtually all the profit, subsidizing the loss-making bottom 80%.
In other words, if you could know ahead of time which films would be hits, the economically rational
decision would be to make just 20% as many of them. And, indeed, this is largely what movie rental
and download companies do. Since they do know which films were hits in the box office, they mainly stock
and push just those. As a result, theatrical hits from the past year make up 90% of the transactions.
A measurable and quantifiable Six Sigma-like process has been defined and documented to help address
these error-prone, human aspects of sales management.
The initial requirement is an accurate measure of any individuals skills, competencies, motivational drivers,
work habits, and potential for developing future competencies. The assessment technology must be criterion
validated to be predicatively accurate. It must provide the actuarial data and analysis of sales success and
failure, and identify productivity improvements and/or reduction in unwanted turnover well beyond the
25-65% accuracy most commonly reported. Research suggests that only a Six Sigma or TQM approach can
accomplish the necessary level of quality improvement in the management of intellectual capital. Using a
TQM for sales or Total Quality Sales Management (TQSalesM) requires focusing primarily on identifying
the causes of failure of otherwise qualified sales and service people. This is a counter opposite approach to
the more common identification of the criteria for success as typically seen in job analyses and competency
studies. A TQSalesM approach is capable of establishing a single process that can measure all of the relevant
competencies with an accuracy level robust enough to support substantial quality gains in the management of
a companys most valuable Human assets.
The result is a TQM Sales Talent Audit system an
information repository where organizations have a
complete inventory of strengths and weaknesses for all
employees in every key position. This relational database
can distinguish the job performance potentials for key
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talent located anywhere in the organization.

The causes of failed Talent Management Systems are
many. An effective Six Sigma and TQSalesM approach
can dramatically reduce most of these cause and help
maximize the most common measures for sales force
effectiveness:
Increasing sales goals
Achieving sales goals
Reducing unwanted turnover
Motivating top performers
Putting the right sales in the right sales job
Maximizing your training investment

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