The document discusses the need for life and general insurance companies to conduct comprehensive sales audits of their agency offices. It notes that management needs feedback on the effectiveness of plans and quality of execution. A sales management audit is proposed to assess individual salespeople and managers. Such an audit would examine resources, processes, metrics and culture. Conducting regular sales audits would help management exercise better control over bottom-level activities, drive the corporate agenda based on field feedback, and reduce uncertainties that can hinder planning.

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EVALUATING THE PERFORMANCE OF
THE SALES ORGANIZATION
Case for a comprehensive Sales Audit in the Life and General
Insurance Agency Offices

2. Key Factors
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Introduction
To operate effectively,
management needs feedback on the effectiveness of its
plans and the quality of its execution.

3. Goals &
Objectives
Modify
Compare
Key Factors
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Sales
Plans
Implementing
the Selling
Effort
Sales
Results
(Feedback)
Controlling
the
Selling
Function

4. Key Factors
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Controlling the Selling Function: Feedback
The Sales Management Audit
The sales management audit is
directed at individual sales people and at
branch, district, regional, and other area
managers.

5. Key Factors
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Operational challenges in Managing a Agency sales office

6. Key Factors
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7. Key Factors
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Causes leading to this
• Excessive focus on results for the day ( hunting over
farming)
• Unwarranted sense of urgency in recruitment SM and
advisors leading to dilution of corporate policies
• Lack of structured approach in building pipeline for
new clients
• Lack of quality engagement between agent and the
Branch office
• Ineffective Sales activity tracking and supervision

8. Key Factors
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BCG has defined a six point action agenda for the
life insurers journey ahead:
◊ Fix the agency operating model
◊ Build strategic, long term non agency partnership
◊ Incubate, experiment and develop alternative
channels
◊ Develop a customer centric operating model
◊ Target customer / product white spaces
◊ Go lean — “lean is in”
BCG- Boston Consulting Group

9. The Problem statement of
Sales Management
Key Factors
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The Vicious
cycle

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Limitations of Current Review Mechanism
•MIS throws out loads of data and is left to discretion on interpretation
•Chances of subjective/Biased feedback from hierarchy down the lane
•Reviews focus on data and the agenda gets hijacked by few instances of bad or
good behavior
•Visits by top bosses yield good feedback but is limited by time constraints
•Also visits by top bosses is used as an opportunity to create good will/excitement

11. Key Factors
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12. Management intentions need to be backed in
equal measure by Mid level interventions and
ground level actions.
Key Factors
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Management must be able to exercise better control on the activities at the bottom of the
pyramid and be in a position to drive its agenda after factoring the ground level feedback.

13. SOLUTION
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The Virtuous
cycle

14. Points to Ponder
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•The sales function is the cornerstone of the future success of your business.
• It represents the front line for new business development and planned revenue
generation
•Your sales function performance can make or break the success of your company,
particularly in today’s evolving and demanding competitive marketplace.
What is your confidence level of your sales offices adhering to your corporate guidance on
sales management Practices
How much does your sales plan solely rest on Human execution ? What are the odds of
Potential to fail?
Do you have an acceptable amount confidence in their ability to consistently meet your
company sales goals?
Even if your company is generally doing well, is it possible there are unexplained
inconsistencies between the various members of your sales teams.
Is this uncertainty preventing your company from effectively planning and managing the
production and financial resources of your company?

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Most companies readily institute a comprehensive financial audit to
ensure strict adherence to your company’s targeted financial policies, as
well as to provide an effective system of accountability. An
uncompromising commitment to this practice keeps your company
financially sound and strengthens shareholder confidence. In the same
spirit of insisting on accountability and commitment, why not audit
your sales pipeline management process and hold your sales staff just as
Accountable?

16. Key Factors
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The Sales Performance Audit
Similar to a financial audit, a Sales Performance Audit provides an across the board
assessment of the three crucial area of any sales department:
1)Assessment of the current sales management resources (People),
2)Assessment of the current sales pipeline management process(s) (Process), and
3) Assessment of the current measurement metrics used with the current sales
management process (Performance).
4)The culture of the office that holds the above three together

17. Key Factors
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18. Key Factors
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Sales Audit, your tool for exercising more
control and bridge the Strategy-Execution Gap
S.V.Balaji
iamsvbalaji@gmail.com