When I get calls from prospective clients, they often tell me about one or more salespeople who are failing to achieve quota.
When they tell me that, they expect to get a reaction from me. What they get instead is a question: “How did you come up with the quota?”
The usual response is a deafening silence, because they don’t know how it was derived.
In some cases, the quota was developed based on executive whim, i.e., “I think he can do 20 percent more this year than last year.”
In other cases, it’s a result of budget division. “We need to grow by a million dollars. We have five people on the team, so each one will have a $200,000 quota.”
What I rarely hear is that they have a science to their quota-setting strategy. You can follow these steps to remedy that situation…