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Being capable of planning and so constructing robust plans is a core skill for all managers and as a result it frequently forms a main topic on management training courses. It can be helpful to examine how experienced managers go about planning and data from a poll of 316 businesses does just this. The poll reveals when and the way sales managers from small, medium-sized and large companies from all industries do their sales planning.

When asked when sales planning is started, 54% of all sales managers replied, 'Up to three or more months before the beginning of the new business year.' 37% of managers begin their planning 4 to six months ahead of the new fiscal year. In general, the survey revealed that the larger the company, the lengthier the planning period.

As far as the participation of the field sales staff in the sales planning process is concerned, in only thirteen% of organizations do the sales people simply stick to orders. In 50 percent of the firms questioned the sales force members are actually granted the right to make suggestions when the sales plans were being developed. In 37% they are actually permitted the right to share in choices.

32% of those polled relied on data from the last financial year. 46% of sales managers utilised statistics from the past 2 financial years and 14% utilised information from the past 3 years.

Five desired goals are drivers in sales planning (numerous mentions in the survey). They are: Getting market share (75%). Training of sales people so they act on their very own initiative (74%). Orientation of the sales planning process according to market potential (73%). Motivation of sales force staff (66%). Monitoring of the sales staff's effectiveness (64%).

In addition, sales planning was used to relate the payment of the sales force more closely to the actual sales performance, and also to enhance distribution, and also to track sales expenses. Achievement of the sales revenue objective has clear priority in the planning process (90% of those questioned had this as an intent).

Other desired goals are (numerous mentions in the survey): sales volume objectives (41%), activity goals (37%), contribution goals (30%), and combined goals, e.g. sales revenue and activity goals (26%), market share goals (18%). 9 out of 10 businesses surveyed plan their selling for only one year ahead. Only 1 in twenty of all those managers polled draws up sales plans for 2 or more years forward. Ten% of sales managers who operate with a 1 year plan furthermore create shorter term plans for 1, three or six months.

Sales plans are broken down based on the following criteria (a number of mentions in poll): sales areas (90%), product or service groupings (64%), individual buyers (54%), products and services (31%), A/B/C clients (25%), customer industries (11%). Fifty percent of the sales managers questioned decide plan numbers for individual clients. A quarter differentiate their clients according to the A/B/C classification approach. This can be a sign of the rising importance of key clients for these businesses and is mirrored in the degree of key account management training undertaken regardless of company size.

In those businesses that do produce sales plans for individual customers, use is made of the subsequent information: sales revenue (88%), sales quantity (36%), contribution (29%). Additionally, the following criteria are also crucial for much larger businesses: market share supplied of the customer's purchase quantity (27%), marketing agreements (23%), training activities for staff (19%), listings and exclusive sales [e.g. end-of-year sales] (12% each).

Two thirds of the sales managers polled create their sales plans (61%) on pcs, the remainder use their office computers.

In response to this question "with which functional areas (divisions etc.) do you coordinate your sales planning?" the 316 sales managers questioned replied (several mentions in poll): main board of management (85%), advertising and marketing department (71%), manufacturing department (53%), finance/controlling department (49%), logistics department (25%), materials management (21%), R&D (20%).

In summary, planning is a regular part of the managers function in firms of all sizes. Mastering how to plan is a skill very well worth developing as a manager and a good quality management training course might help you broaden your knowledge.

Richard Stone is the Director for Spearhead Training Limited an organization which specialises in creating and delivering management training and sales training courses to increase business performance. View extra management related articles at http://www.spearhead-training.co.uk

By Richard A Stone
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