Saturday, July 27, 2024

The Essential Battle: Why Departments Must Clash for Sales Success

 There are multiple departments at work to push sales forward. In any sales-driven organization, you always have the Marketing team generating leads via digital and non-digital campaigns. The Pre-Sales team typically warms up the call, qualifies the lead, and then passes it on to the Sales team, which further engages the lead and converts it into an actual customer. Depending on the company or process, this lead may further go to a CRM or Delivery team to ensure services or products are delivered to the client.

Why is it important for any organization that these departments always challenge each other to boost sales? The reason is simple: if all these departments become hand in glove and do not fight—mind you, I don’t mean they should literally punch each other—if there are no arguments on outcomes, productivity, and targets for each department, it's grossly harmful for the business. These departments are interdependent for target achievement, so without healthy friction, arguments, competition, or challenges between them, the business won’t move forward.

In my experience with multiple companies, I’ve found one thing in common: if these departments are all hand in glove and don’t challenge each other, the company’s sales figures don’t meet industry averages. There’s always something wrong when I evaluate the sales. On the other hand, where all these departments continuously challenge each other and have healthy fights over performance and numbers—as everyone’s output impacts the performance of others—I’ve seen those organizations have healthy sales, and their processes are well optimized, pushing sales forward.

It’s the management's job to always ensure that each department’s KPIs impact the KPIs of others in the chain. This ensures that each department keeps challenging the others on which it depends for optimization and better output. Successful organizations do this by incorporating incentives divided into two halves: one for individual performance and another for overall sales achievement. This ensures that each department has a sufficient interest in the output of others.

For example, the Pre-Sales team that qualifies leads should get an incentive for the number of leads they qualify from the leads received—that’s their individual KPI. They should also get an incentive for the sales, ensuring that the Pre-Sales team will continuously monitor the lead progress and keep the Sales team on its toes. Similarly, once the Sales team converts a lead into a customer, they should get an incentive. They should also be incentivized once the product or service is delivered to the customer on time by the CRM team, ensuring that the CRM team is also in check. This kind of incentive strategy always ensures that each department in Sales challenges each other, promoting growth in sales numbers.

Now, imagine a scenario where all these departments have no complaints against each other and are conveniently working towards protecting each other, shifting the blame for underperformance on external factors. In such an environment, the management or the company is the loser. In professionally driven companies, data is shared openly with all stakeholders, questioning is allowed by appropriate persons at appropriate forums to bring accountability, performance is key, and hence in such organizations, sales thrive. 

Picture this: A sales department where everyone gets along like a harmonious choir. Sounds ideal, right? But wait, have you ever seen a choir sell a million-dollar product? Exactly. You need a bit of rock and roll, a touch of jazz, and maybe even some country twang to get those sales numbers singing. When departments challenge each other, it’s like a good jam session—everyone’s playing their part, and the result is music to the ears of the shareholders.

So, the next time your marketing team and sales team are at each other’s throats over lead quality, just remember, it’s not a disaster—it’s a duet. And who doesn’t love a good duet?

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