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  • December 15, 2015
  • Article
  • Harvard Business Review (website)

Don't Turn Your Sales Team Loose Without a Strategy

By: Frank V. Cespedes and Steve Thompson
  • Format:Electronic
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Abstract

When formulating a strategy, markets and segments are typically important categories. But only customers buy. Hence, for most firms, de facto strategy and much resource allocation are the aggregate result of the deals their salespeople close. However, few firms clarify their deal selection criteria, and most sales compensation plans (about 70%, according to surveys) incentivize volume independent of the type of sale or cost-to-serve different customers. This is ineffective deal management and, to avoid this, some firms establish a Strategic Deal Profile. This article focuses on an example that illustrates what a Strategic Deal Profile is, why it is important, and the issues involved in making such a Profile part of actual selling behaviors and performance management practices.

Keywords

Strategy; Salesforce Management

Citation

Cespedes, Frank V., and Steve Thompson. "Don't Turn Your Sales Team Loose Without a Strategy." Harvard Business Review (website) (December 15, 2015).
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About The Author

Frank V. Cespedes

Entrepreneurial Management
→More Publications

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  • How Managers Can Build a Culture of Experimentation By: Frank V. Cespedes and Neil Hoyne
  • Avoid a One-Size-Fits-All Approach to Sales Coaching By: Frank V. Cespedes
  • Improving Sales Hiring By: Frank V. Cespedes
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