In the Classroom II
Assessing the Impact of Sales Force Strategy

The sales force may seem to defy careful analysis. It depends upon relationships between people that sometimes only pay off over long periods — yet most considerations of investments and strategic actions are made in limited timeframes. It also requires tradeoffs among a complex mix of investments that often have uncertain payoffs.

The Leading the Effective Sales Force program helps sales force leaders take a more rigorous approach to these challenges. The program provides tools for assessing sales force allocations as well as a simulation that helps managers see the long-term impact of their sales force decisions and investments.

An assessment tool for sales force allocation strategy, which had been spreadsheet-based, will be offered for the first time on a web-based platform. This allows users to interact through a series of questions to determine the most profitable way to allocate their resources. This analytical tool, and computer-assisted data collection methods, will help participants to improve sales force structure, deployment, and performance without increasing head count or budgets.

The program, which is expanding from 4 to 5 days with the December 2005 session, will also be adding a new simulation. By allowing participants to experience multiple rounds of competition — and see the results of their decisions — the simulation helps managers assess the impact of their strategies over the long-term.

"The simulation gives people a deeper understanding of the relationship side of sales," said Deb Giffen, program director. "If you go for a quick hit or short-term gains, how does that affect your lifetime customer value? Sales force leaders often have to make tradeoffs between making their numbers for the quarter or building solid relationships with their customers. The simulation lets them see the effects of their strategies — the payoffs now and in the future — so they can make wiser decisions."

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