1.1. The Regulations on key performance indicators of [name of manager’s position] (hereinafter referred to as the Regulations) were developed in accordance with the legislation of the Russian Federation and [name constituent document organization].

1.2. Terms used in the Regulations:

Performance efficiency is an assessment of an employee’s achievement of set goals and objectives.

Motivation system - forms of material and non-material incentives carried out by the organization in relation to the manager based on the results of performance.

Key Performance Indicators (KPI - Key Performance Indicator) are quantitative indicators that allow you to evaluate the effectiveness of an employee.

Manager's remuneration is the manager's remuneration, consisting of a fixed and variable part.

The constant part of the manager's remuneration is remuneration that does not depend on the performance of the manager and the organization as a whole.

The variation part of a manager's remuneration is a remuneration that depends on the performance of the manager and the organization as a whole.

1.3. Key performance indicators are developed based on an analysis of the organization's strategic goals and objectives.

1.4. An employee's achievement of key performance indicators is assessed at the end of each reporting period. The reporting period is equal to [month, quarter, etc.].

1.5. Regular review and updating of the system of key performance indicators is carried out at least once every 2 years. Monitoring the timely updating of key performance indicators is carried out by [job title].

2. Goals and principles of the motivation system

2.1. The goal of the motivation system is to increase the efficiency of the manager, and as a result, the organization as a whole.

2.2. The set goal is achieved through the creation and implementation of motivation principles:

2.2.1. The principle of complexity

The motivation system is a set of forms and methods of stimulating an employee (material and non-material forms of reward and punishment).

2.2.2. Principle of correspondence

The motivation system applied in accordance with these Regulations directly depends on the performance of the head of the organization for the reporting period.

2.2.3. The principle of openness

The motivation system is open and understandable to the employee; there is a clearly visible relationship between the employee’s performance and the system of rewards and punishments.

2.2.4. Regularity principle

The performance of the head of the organization is assessed on a regular basis, at the end of each reporting period.

2.2.5. Principle of justice

When assessing the effectiveness of a manager’s activities, all circumstances and factors that occurred during the reporting period are taken into account.

2.2.6. The principle of balance

Maintaining a balance between material and non-material forms of encouragement.

3. Motivation system

3.1. The non-material incentive system includes:

Declaration of gratitude;

Awards letters of gratitude, certificates of honor, insignia;

Congratulations on holidays and significant events on behalf of the organization;

Awarding the title of the best in the profession;

Presentation of valuable gifts;

Other forms of non-material incentives.

The decision on non-material incentives is made by [name of position or management body].

3.2. The material incentive system includes constant and variable parts of the manager's remuneration.

3.2.1. The fixed part of remuneration includes the official salary and additional payments and allowances:

The official salary is set employment contract and does not depend on the degree to which the manager achieves his goals and objectives;

Additional payments and bonuses are paid in accordance with the current legislation of the Russian Federation. In addition to the established regulations The manager is paid the following additional allowances: [enter as necessary, for example, for continuous work experience in the organization].

3.2.2. The additional allowances established by these Regulations are calculated: [enter what is needed, for example, as a percentage of official salary. From 5 to 10 years continuous operation- 10%; from 10 to 20 years - 15%; over 20 years - 20% of the manager’s official salary].

3.3. The variable part of the manager's remuneration consists of a bonus.

3.3.1. The size of the manager’s bonus depends on the degree to which the actual KPI values ​​correspond to those planned for a specific billing period.

3.3.2. When calculating the bonus, the following indicators are taken into account: [enter the required one, for example, KPI1 - net profit of the organization, KPI2 - return on sales, KPI3 - labor productivity, KPI4 - sales revenue].

3.3.3. Manager KPI is calculated using the following formulas:

KPI1 = emergency situation - emergency plan / 100%, where

Emergency fact - the organization’s net profit for the billing period,

Emergency plan is the organization’s planned net profit for the billing period.

KPI2 = RPfact - RPplan / 100%, where

RPfact - profitability for the billing period,

RPplan is the profitability of sales planned for the billing period.

KPI3 = PTfact - PTplan / 100%, where

PTfact - labor productivity for the billing period,

PTplan - planned labor productivity in the organization for the billing period.

KPI4 = VP fact - VPplan / 100%, where

VP fact - sales revenue for the billing period,

VPplan - sales revenue planned for the billing period.

KPI = KPI1 + KPI2 + KPI3 + KPI4 / 4

3.3.4. The manager's bonus is calculated as a percentage of the KPI to the official salary:

4. Final provisions

4.1. This regulation comes into force from the moment of approval by [name of position or management body].

4.2. Amendments and additions to this agreement are accepted in cases of changes in the organizational and legal structure of the organization, development strategy or business plan of the organization and come into effect from the moment of approval by [name of position or management body].

Agreed:

[position, initials, surname, signature]

[day month Year]

I am familiar with the regulations: [initials, surname, signature]

[day month Year]

We are opening a new series on the topic of KPIs, started last year1. This time we will consider the main steps of implementing a KPI-based staff motivation system. Let’s focus not on the method as such and general approaches to functionality, but on key indicators that usually fall into the company’s top management chart. Mastering this material will require a certain amount of patience from the reader, because the presentation general principles is always perceived more simply than an analysis of particulars.

Sustainability is progress without impatience.
Nassim Taleb

For top managers, as for all other company employees, there is general rules, but there are rules that apply only to a specific position.

How to direct an employee to

Typically, the general rules for motivating all managers (including top managers) include the following:

• objective analysis and assessment of the position held - the complexity, area and degree of responsibility of the work performed;
• taken into account key functions and the employee’s goals and their share of participation in achieving the goals of other employees;
• no less than three and no more than five are taken into account Employee KPIs according to the main goals of the employee 2;
• business processes in which employees participate and the degree of personnel involvement in the main business process are taken into account.

However, along with the general rules, there are also rules specific to each position, taking into account the individual responsibility of the top manager for the area of ​​activity he heads (process, project) and goals.

Specific rules for the general director (GC) are usually established by the company's shareholders, since the CEO is the spokesman of their interests, the “translator” of strategic desires and intuitive expectations from the business into the language of operational management. Sometimes shareholders determine these specific rules for key top positions, for example for commercial director, financial director, production director.

Typically, shareholders indicate what they would like to see as the final result of the company’s activities, and it is in this regard that certain KPI parameters for top managers are named. Often this sounds very general, for example: “All top managers should participate not only in the profits, but also in the risks of the company” - translated into KPI language, these will most likely be at least two indicators: total profit and by profitability of activities by division. The remaining indicators relate directly to the goal or functionality for which each top manager is responsible.

The CEO has it “easiest” because he is responsible for everything. The duty of the General Director is to ensure the effective functioning of the economic facility entrusted to him. This means that the projections of all goals and processes are reflected in his area of ​​responsibility. Figuratively speaking, the CEO is responsible for everything he does himself and for what his top managers do.

If this is taken literally, the KPI diagram of the CEO will be voluminous and confusing, because it will have to reflect the KPIs of all his deputies, as well as his own indicators, since, despite the popular saying “don’t do anything yourself if you have a good deputy,” An active CEO has to do a lot himself.

To build a scheme of target 2 KPIs for the CEO, you can go one of two ways.

Method 1 (more correct, but also more complex) - building a Strategic Map for the General Director.

The strategic map includes all the goals of the Main Directorate (and usually these are all the goals of the top-level company), distributed across four main perspectives: development, processes, customers and finance 3. In this case, the goals are not arranged in any random order, but in a hierarchy, reflecting the connection (which goal must be achieved earlier in order to move to the next one) and the strength of the connection (the extent to which achieving the previous goal is a necessary and sufficient condition for achieving the next one). An example of a Strategic Map is shown at drawing.

The numbers next to the targets indicate their weight. The goal that includes the maximum number of connections from other goals has a weight of 1, and the remaining goals have a weight proportionally. In the presented figure, the most important, significant financial goal for the State Duma is “to increase the capitalization of the company.” It includes with an equal weight of 0.5 (equal weight is an assumption to simplify the example) two more goals: client “to have at least 70% of the market share in the regions of presence” and process “to provide the necessary resources for development.” The client goal includes three other goals from a process perspective. Their weight is divided proportionally with respect to the weight of 0.5. KPIs developed for each goal with the CS are reweighted in accordance with the weight of the goal, and only those KPIs that receive a weight of at least 0.1 are retained for the final calculation.

The result will be a kind of KPI table that fully takes into account all the nuances, but requires a really advanced enterprise accounting system in order to be able to calculate everything correctly. We will not give all table, since this is quite a voluminous material for example, we will limit ourselves to two goals with the CS and KPIs for them.

The sum of the KPIs does not equal one because for the example we did not use all the goals from the CEO's Strategy Map.

Prize/bonus = (BFKRP x A + BF KPI2 x B + ....) x D,

where BF is the maximum bonus fund according to the indicator. The share of each KPI in the overall budget is proportional to its weight;

A, B, ... etc. - performance indicators;

D is a stop factor that blocks the payment of a bonus if the minimum threshold values ​​for each indicator are not reached (these may be different “thresholds” for different indicators or a single norm for the company, for example, 80% of the plan). Failure to reach the minimum threshold value adopted by the company for any of the indicators included in the calculation formula blocks (or significantly reduces) the bonus payment. That is, the value of coefficient D varies from 0 to 1.

This method is correct because it allows you to take into account the significance of both goals and KPIs, but it is usually difficult to implement, so it is used when the company does not have a clear understanding of the specific importance of the goals, i.e. it is difficult to prioritize their achievement “head-on” directly, and it is necessary to carefully monitor the connection and conditionality of some goals with others, so as not to miss anything in the final KPI scheme.

If the company clearly understands exactly what goals it is setting for the foreseeable period and in what sequence, then a simpler method can be used to create a KPI scheme for the CEO.

Method 2. Development of a KPI map “head-on”.

When implementing this method, all the goals of the general director are written out, which are indicated to him by the shareholders (most often these are the same profit and profitability), KPIs are determined for them, their weight is expertly assigned (which in total should be equal to 1) and the conditions under which the bonus is paid in full or reduced amount. The strategic map is not being built.

Let's assume that the CEO's goals, as outlined to him by shareholders, are measured by the following KPIs:

• Admission Money(PDS).
• Profit.
• Repeated contracts with clients for the period (in kind or monetary terms).
• Percentage of completing assigned tasks on time (upper level management).

Revenue per company employee (can be broken down by division or separately production personnel and office staff). For each KPI, two threshold values ​​are set: the first - if not achieved, the bonus is not paid for this particular KPI, and the second - if not achieved, the bonus is not paid at all, regardless of the percentage of completion of other KPIs. The formula for calculating the CEO's bonus/bonus thus includes five indicators, each with its own threshold value. Then the table for calculating the CEO's bonus may look like shown in table 2.

The calculation is made on the basis of those planned and actual values ​​that are entered into the table from the company’s accounting system.

The main rules that should be taken into account when linking KPIs to the motivation system for top managers are the following:

1. Indicators must be supported by the accounting system.

2. The CEO's performance must include the performance of other top managers (in essence, the CEO's performance is the company's performance).

There should be no more than five or less than three indicators.

3. The weight of the indicator correlates with the share of the bonus fund allocated to the total bonus.

4. Each indicator has threshold values ​​at which a bonus is not paid for this particular indicator.

A general stop factor of 4 is often introduced - the minimum value for achieving indicators, the failure of which for at least one of the indicators cancels or significantly reduces the total bonus, regardless of the percentage of achievement of other indicators.

Approval of the CEO's performance and bonus scheme is usually carried out by shareholders. The CEO bonus scheme serves as the basis for the future development of bonus schemes for the rest of the company's top managers.

14:29 8.09.2006

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The commercial director is responsible for many things. This includes employee training, employee management, and maintaining good relations with key clients, and

What is the job of a commercial director?

Having worked as a commercial director in many companies, I have a certain point of view on this issue. Imagine that you have climbed the career ladder and received the position of commercial director.

You are invited to various events. You need to meet interesting people. Along with all these pleasant consequences of appointment, you also have certain responsibilities.

For example, you must ensure that the company operates in accordance with the business plan. And, unlike other directors (financial, technical, director of information technology), your success depends on people who are not under your complete control - your success depends on your customers. Unless you're in a monopoly market, customers always have a choice. A real commercial director understands this.

Reference:
In the period from 1996 to 2003, Rick Macy lived in Russia and worked in such companies as Comstar, PeterStar, Kemerovo Mobile connection", "Cosmos TV". He was a member of the board of directors of PeterStar. He was elected Chairman of the Executive Committee of the American Chamber of Commerce in St. Petersburg, Russia. He was among the top three commercial managers in the telecommunications market in Russia in June 2002 and among the twenty best Russian commercial managers in the ranking of the Association of Managers and the Kommersant newspaper. From 2003 to 2005, Rick Macy was responsible for managing Harris Corporation's sales teams in Latin America and the Caribbean. Managed the annual business planning process for the above-mentioned companies and their dealer networks in Russia and abroad. Conducted trainings for the following companies: Rostelecom MMT (Moscow), Severstalmash (Cherepovets), Web Plus (St. Petersburg), Skylink (Moscow).

The commercial director knows the market in which he operates, knows his clients - and especially those who bring in the greatest income, has a good command of the products and services that his company provides, knows his company and his competitors well.

He must also understand financial issues. Ideally, a commercial director should understand the profit and loss statement, cash flow statement and balance sheet of the company. Knowledge of these issues is not mandatory requirement for a commercial director, this is more likely a requirement for a general or financial director. Why then did I talk about financial issues? Because when a commercial director makes a decision on the price of products or services and distribution, he must understand the effect that it will bring to the company and, more importantly, to the founders.

At its core, the role of a commercial director is to protect and grow the company's revenue. Some may argue with me that the commercial director is also responsible for the company’s profit. But, as a rule, many expenses in a company are beyond the control of the commercial director.

For example, several years ago I worked as commercial director of Comstar. In the company, the technical director made the decision on how much money to spend on the organization telephone network that would meet customer requirements. So I think the commercial director is primarily responsible for revenue.

Of course, the commercial director must be able to ensure that the company gets new customers and that these customers are profitable for the company.

Thus, the commercial director may be responsible for making profitable deals, but cannot be responsible for the profitability of the company as a whole. Responsibility for the profitability of the company, in my opinion, lies with the CEO.

This year, in addition to working in the training and consulting company"Academy", I am the General Director of the Yellow Pages company in Russia.

I recently asked our commercial director to name 20 key potential clients, who have not yet concluded a contract with us, but with whom active negotiations are underway. I was very upset that I did not receive an answer to my question.

You may not agree with me, but when I was a commercial director (and I started as a regular sales manager), I believed that a commercial director should be able to meet with key clients and help sales and development managers close large deals and solve problems with key clients . Also, the commercial director must clearly reflect in the sales forecast the time period in which a new major client will appear.

How can a commercial director effectively perform his function of attracting revenue to the company? A big part of the answer is SALES FORECAST! What is a sales forecast? It's not enough to report what you've already sold. It is more important to report what you intend to sell.

Most companies report on what they have already sold. It's quite simple. You look at contracts concluded for a certain period, add up the amounts for these contracts and get revenue for a given period.

However, if you were my sales manager, I would want to know how much you are going to sell in the next month, quarter or next year. This is more difficult to do because you need to get your employees to forecast and qualify leads.

Interestingly, we just went through the sales forecasting process at Yellow Pages. After the first weekly sales forecast, all sales teams exceeded forecasts by an average of 40%. Would you say excellent results? Not really. Either sales agents and managers did not understand the purpose of the sales forecast, or they understood and deliberately included underestimated figures in the forecast.

It happens that Sales Representative I'm almost certain that I will sign a contract with a client at a certain time, but I don't tell my manager about it. Then, when the contract is concluded, he can present himself as a hero. I think this is unprofessional.

Think about it this way. Every month, employees expect the company to pay them wages. And that's reasonable. Likewise, a company expects its sales director to say how much the company will sell in the next month or any other period of time.

I am confident that we at our company will produce more accurate sales forecasts with additional training and appropriate management.

Creating a sales forecast is certainly a complex process. With a written procedure, a little training, Excel and an email program, you can create a reliable sales forecasting system. When I worked as commercial director of the PeterStar company, the accuracy of the sales forecast reached 95%.

Of course, the role of a commercial director in a company largely depends on the size of the business and the type of business in which the company operates. For example, for a short time I worked in a division of the Severstal company. Many of the company's clients were located in different cities. Thus, I had to spend a lot of time traveling to meet clients.

But meetings with clients are very important. Remember that unless you are in a monopoly market, customers always have a choice. A good business manager finds a balance between time spent on the road and time in the office. Don't forget that while you're away from the office, you need a competent substitute you can rely on.

I like that in Russia, when I was a commercial director, I went to the bathhouse with key clients. Very good! This is something that business executives in America will never understand. It's good to work in Russia!

The commercial director is responsible for many things. This includes training employees, managing employees, maintaining good relationships with key clients, and concluding profitable deals.

Also, the commercial director should ensure that sales managers can work without undue interference from other departments that perform a supporting function, such as accounting (just kidding, they also perform an important function). This is certainly an interesting task!

How can a commercial director effectively manage the people reporting to him? He gives clear instructions to employees. These guidelines are always linked to the annual business plan. I always start with an organizational chart, an overview of the job descriptions of my subordinates, and a commission structure. Sometimes it is discovered that the employee motivation system is structured in such a way that it is unprofitable for the company. When drawing an organizational chart, I like to place the client at the top and the director at the bottom of the diagram.

I'm a big believer in going through the company. Leave your office. See what employees are doing. Talk to them and you will learn a lot about your business.

Be fair to employees. Make them take risks. Allow them to make mistakes, so they will learn. If a person is engaged commercial activities and at the same time does not make mistakes, in my opinion, this means that he does not take risks. And business is a risk.

What are Key Performance Indicators and why are they important?

What I don’t like in any organization and what I didn’t like at school is the subjective attitude towards people.

Key performance indicators, or KPIs (Key Performance Indicators. - ComDir) allow you to objectively measure the performance of your employees. Former General Electric CEO Jack Welch said, “If you can't measure it, you can't manage it.” Old Jack knew what he was talking about. After all, he started working in the sales department...

When I was the commercial director of PeterStar, the largest alternative fixed-line operator in St. Petersburg, I had a conflict with our chief accountant. One of my best sales managers concluded big deal with the Central Bank of Russia. The company had to pay him a commission. Commissions were based on achieving certain KPIs (number of lines sold per month, income brought into the company per month).

KPIs were clearly stated in job description manager and in the commission scheme. In addition, there was a clear description of how the commission was calculated.

The chief accountant did not want to pay employee Valery his commission. I met with her and calmly showed her the documents describing the necessary KPIs, from which it was clear that Valery had concluded this deal. I asked, “If we don’t pay the commission, what will the other employees think?”

The chief accountant relented and agreed to pay the commission. Valery received his commissions, and PeterStar acquired another profitable client.

Think about KPIs in a different way. Let's say, in accordance with the business plan, the company's revenue should be $10 million. The average amount of one contract is $50 thousand. It is clear that you need to conclude a contract with 200 clients. Then you need to make sure you have a sales team that can close those contracts.

There are many KPIs from which you can choose the ones that are important to you.

The Investment Bank recently published a report indicating that VimpelCom ( trademark Beeline) has 2,800 clients per 1 employee of the company, and MTS has 1,800 clients per 1 employee. These data allow us to say that Beeline operates more efficiently.

However, when I was working for Millicom International Cellular, CEO one of the subsidiaries reduced the number of employees by creating a separate company. Some employees were transferred to new company, and the founders saw a decline in headcount.

Thus, while tracking KPIs, it is necessary to be careful and also review existing KPIs from time to time so that these indicators can be trusted.

Rick Macy

Partner of Academy CJSC, General Director of Yellow Pages in Russia

KPIs and staff motivation. Complete collection practical tools Klochkov Alexey Konstantinovich

4.1.6.1. Position – Commercial Director

KPI – Revenue growth (net) to revenue growth for the same period last year, %.

Calculation formula: (V/Vpg) ? 100% ,

Where IN– revenue (net) for the reporting month; VPG– revenue for the same period last year.

KPI – Average selling price per unit of the company’s products, rub./unit. prod.

Calculation formula: Vfact./Vpr.fact,

Where In fact– actual revenue including VAT for one product item; Vpr.fact– actual sales volume of one product item.

KPI – Fulfillment of gross profit plan, %.

Calculation formula: (GPfact/GPplan) ? 100% = ((R–VC–FC)actual/(R–VC–FC)plan.) ? 100%,

Where R (Revenue)– revenue; GP (Gross profit)- gross profit; VC (Variable Cost)– cost of sales; FC (Fixed Cost)– fixed costs.

KPI – Revenue from new customers, %.

Calculation formula: (In/TI) ? 100%,

Where In (Income new)– income from new consumers; TI (Total Income)– total income.

KPI – Deviation of actual sales growth from planned, %.

Calculation formula: ((Vpr.fact./Vpr.plan.) ? 100%) – 100%,

where Vpr.fact.– actual sales volume; Vpr.plan.– planned sales volume.

KPI – Deviation of the average price from the planned price, %.

Calculation formula: ((Rav./Rplan.) ? 100%) – 100% ,

Where Rsr.– average actual price of the brand; Rplan.– planned price of the brand.

KPI – Share of high-margin products in total sales, dimensionless.

Calculation formula: Vopv/Vop,

Where Vopv– sales volume of high-margin products; Vop– total sales volume.

author Perzia Valentin

Commercial launch The last “torment”. The product is brought to perfection, production begins, and the first responses from customers are received. Please note that the appearance of a product on the shelves does not mean that we have done everything correctly. The transition to mass production can

From the book KPI and staff motivation. A complete collection of practical tools author Klochkov Alexey Konstantinovich

4.1.1.1. Position – General Director KPI – Amount EVA (Economic Value Added), thousand rubles. Calculation formula: EVA = NOPAT(adj)–WACC ? CE(adj), where NOPAT (Net Operating Proft After Taxes) is net operating profit after taxes, adjusted for changes in equity equivalents; WACC

From book Financial management. Crib author Zagorodnikov S.V.

4.1.6.1. Position – Commercial Director KPI – Revenue growth (net) to revenue growth for the same period last year, %. Calculation formula: (V/Vpg) ? 100%, where B – revenue (net) for the reporting month; Vpg – revenue for the same period last year. KPI – Average selling price

From the book Supermarket. Your super job and your super career author Maslennikov Roman Mikhailovich

4.2.3.1. Position – General Director KPI – Planned turnover growth rate, dimensionless. Calculation formula: Onp/Opp, where Onp is the company’s turnover in the current period; Opp – the company’s turnover for the past

From the book Portrait of a Manager. Trade specialists author Melnikov Ilya

4.3.2.1. Position – Commercial Director KPI – Planning accuracy, %. Calculation formula: (Kfact./Kplan.) ? 100%, where Kfact. – number of actual adjustments; Kplan. – planned number of possible adjustments. KPI – Number of plan adjustments, pcs. Calculation formula: Npp –

From the book Ruthless Management. Real laws of personnel management author Parabellum Andrey Alekseevich

4.3.3.1. Position – Financial Director KPI Return on assets (RA (Return of Assets)) of non-current assets, dimensionless. Calculation formula: R/NCA, where R (Revenue) – sales revenue; NCA (Non-Current Assets) – average value non-current assets. KPI Accounts receivable level, rub. Calculation formula:

From the book Advertising. Principles and Practice author Wells William

4.3.7.1. Position – Director of Production KPI Average cost per ton of products, thousand rubles. Calculation formula: St/Nt, where St – average cost of manufactured products, which is calculated based on the full cost; Nт – quantity of manufactured products (in

From the book MBA in 10 days. The most important programs from the world's leading business schools author Silbiger Stephen

51 COMMERCIAL LOAN Commercial (company) loan is lending provided by the participants in the production and sale of goods (work, services) in the form of deferment, installment payment, advance payment for goods (work, services) or

From the author's book

Director - I myself, our venerable master John, have not eaten since yesterday. And I love meat too! - That's why you're the director. But I can’t live without meat! Vsevolod Ivanov, “Adventures of a Fakir” When a business is just starting and gradually grows, these are the most wonderful moments for it. Which,

From the author's book

Commercial agent K job responsibilities commercial agent include: 1. Participation in the work of establishing the necessary business contacts between buyers and sellers of goods, including technical and other products (equipment, raw materials, semi-finished products, etc.), and

From the author's book

Commercial Director The commercial director performs operational, advisory, coordination and financial work, including administrative and economic management of the enterprise as a whole or its main structural divisions.

From the author's book

Executive Director vs commercial director What is the principle of separation of powers? There must be at least two power points. This could be a commercial director and an executive. The commercial one understands sales and does not know where the goods come from.

The head of sales is the hope and support of the team, main example for imitation. No matter how excellent a specialist he is, he still needs to control his work. For motivation, you can use the same method as for ordinary businessmen - the introduction of KPI indicators.

KPI of the head of the sales department - what is it?

Head's salary commercial division, like his subordinates, consists of a salary (a smaller part, you don’t have to use it) and a bonus based on the results of work. The amount that will be added to the salary depends on the implementation of the plan. The utility coefficient of a senior manager corresponds to a number of characteristics.

KPI for the head of the sales department is transparent and understandable

To calculate the value, do not invent cumbersome formulas. “Tie” it to the amount the boss received from clients per month, the number of meetings with the conclusion of a deal, or the number of new clients during the period. A percentage that is understandable in calculation is more convenient to use in management. And the head of the department is already busy working to unravel the meaning of the formulas composed by the manager. Everyone benefits from simplicity.

KPI for the head of the sales department - commensurate with the team

A leading employee does not force people to work hard, but sets an example with his own achievements. The implementing part of the company has common goals, and, therefore, the tools for achieving them are the same. General system appraisals make the boss closer to his subordinates.

By the way, how effective is your sales department? I suggest you check, for this I will leave you the self-diagnosis questionnaires of the sales department. Use it!

Get profiles

KPI of the head of the sales department (example) - the number of calls that resulted in a meeting with the client. In this case, the value applies to both managers and the leading merchant. But the number of calls per month for the latter will be higher. This is your best employee, isn't it? What distinguishes him from ordinary businessmen is his experience and professionalism, so the minimum results should be higher. The coefficient allows an ordinary employee to understand the difference in his results and his superior colleague. The manager sees what indicators to achieve in order to ensure an income similar to management. And the guru of the unit is trying not only to earn money, but also to confirm the status of a professional.

The leader's KPI corresponds to the company's strategy

The best people in an organization do not solve typical problems. Yes, the sales manager makes phone calls, but he assigns himself the most “difficult” tasks. If it is important for a company to attract new customers, an experienced employee will solve the problem. The development of the VIP division will also fall on the shoulders of the leading merchant. Taking into account the company's goals for the future, a performance measurement system is determined.

Achievability of the indicator

Even a manager with ten years of experience is not a superman. No matter how high your employee achieves, the numbers for motivation must be real. Determine motivation based on business experience. The simplest way: take the average result (for example, 10 meetings per month that resulted in a contract), increase it to the maximum achieved in the department (for example, 15 meetings). As a result, we get the number that each employee strives for. At the same time, for the boss the number increases again (for example, to 20). You can “draw” any number, but if you want 200 successful meetings a month, even the best businessman will not be able to fulfill your desire.

KPI of the head of the sales department (example for different departments)

Large companies create several sales divisions. One operates on the incoming flow, the other is engaged in active sales through the “cold” base, the third works with VIP clients. The head of each element of the company will have its own coefficient, depending on the functionality of the employees. The value will be the number of calls with an appointment, the number of personal meetings, the amount of funds paid, the number of questionnaires filled out by counterparties. It is possible to unify the motivation system for leading managers of all departments if all values ​​are converted into monetary values. But this measure is not suitable for every business. Motivation measures are developed individually for management tasks.

In the personnel management system, not a single efficiency coefficient is used, but their system. The more complex and varied the functionality of a merchant, the more indicators are created. But you shouldn't get carried away.

Motivation must also take into account complex work patterns. For example, an incoming call from a client results in a signed contract and payment six months after the first contact.

Link to Personnel Results

Personal profit is important for a guru, but team profit is even more important. The income of a leading businessman depends on the achievements of the team so much that his own achievements are perceived as a contribution to the common cause. KPIs are “linked” to the team’s performance. This helps motivate both the boss and his team.

Another important point– constancy. The first manager strives not only to achieve the key value with his team, but also to repeat it month after month. It's even better if actual sales levels increase over time. Stable growth is paid accordingly.

The income of a sales department manager might look like this:

Money received when completing own plan; Award for achievement of KPI level by subordinate managers; Payment "for consistency".

Moreover, all values ​​for determining efficiency are transparent and comparable. The first point of this chain can be the permanent - salary - part. You shouldn’t give it more than 30%. The greater the variable part of income, determined by efficiency, the more subordinates will strive to attract a new client and fulfill the plan.

Indicators are not everything

The introduction of a motivation system using KPIs solves many difficulties with managing and controlling subordinates. It is quite possible to calculate the number of successful transactions and profits per month per manager. Not everything is measurable, even in a work environment. For example, creating a system for measuring authority is problematic. But this factor cannot be ignored, because the authority of a superior colleague determines the outcome of the work.

Ability to make decisions in difficult situations, the ability to direct the development of subordinates in the right direction, the willingness to demonstrate by example how to work with difficult stages of implementation - qualities that a leading employee possesses. It is difficult to “drive” such concepts into the system due to their immeasurability.

But do not forget that a true professional with leadership qualities and the ability to manage people, will show excellent results month after month in a measurable “field”. After all, it is impossible to bring stable profits to a company without the classic qualities of a sales guru.

© Konstantin Baksht, General Director of "Baksht Consulting Group".

The best way to quickly master and implement the technology of building a sales department is to attend K. Baksht’s training on sales management “Sales System”.

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