Aligning The Sales Organization

Make sure that success does not require every rep to be Superman or every manager to be Gandhi.

There are four factors that wholesaler-distributors should consider in designing sales force structure.  The acronym TACH can be used to guide the process of aligning your sales organization.

• Target customer alignment.  The fundamental criterion for any sale organization is how well it meets the needs of the market.  Using an external perspective ensures that your structure is not held hostage to history or internal politics. 
• Accountability for performance. Reward and punishment can only affect behavior if the individual has clear objectives and the means to reach them.  An appropriate organization structure is the best way to ensure that these prerequisites are met, and is thus the foundation of real accountability.  Paying reps on net profitability when they have limited control over warehousing, delivery, installation or project management is a great example of false accountability.
• Cost of coverage.  The sales organization should be designed to provide key services to target segments at the lowest cost possible.  This can often mean hiring more staff so that costly FSRs aren't tied up with customer service and administrative duties.
• Human factors.  This is the reality check on the model.  It may be unrealistic to expect a harried counter sales rep to make effective outbound calls in his or her "spare time," or to have a technical specialist traveling out of his or her home territory 80% of the time.  Make sure that success does not require every rep to be Superman or every manager to be Gandhi.

ACTION POINT:  Align your sales team to the market needs, hold them accountable, provide them the necessary support and recognize reality.