Comments
We asked readers whether sales growth targets should be ambitious (40 per cent) or practical (10 per cent) keeping in mind the industry projection. Readers say it should be at 20 per cent — acknowledging industry projections and staying relevant, yet encouraging the sales team to grow faster than the market. Edited excerpts:
Plan realistically
The plan for the next year should be to enhance market share as market size in itself may not grow and marketers will confirm that growth in share is not easy. Even 20 per cent growth is almost 100 per cent higher than the previous year and should be considered as the ‘base plan' for qualifying for sales incentives in the current year, with a graded incentive structure for higher growth.
— Krishnan Akhileswaran, Apollo Hospitals
Have realistic targets
Growth targets must have some bearing to an organisation's potential. In other words, they must have realistic targets taking all the endogenous and exogenous variables into consideration. As an individual cannot grow beyond his / her capability, companies / institutions too cannot achieve more than what they are capable of.
— S. Ramakrishnasayee, DAV-BHEL School, Ranipet
Beware of complacence
Setting realistic growth targets shorn off any element of ambition will breed complacency, which is harmful to the human being, organisation, society and even the nation. Linking remuneration with achievable realistic targets over long years in the US has lead to complacency in its population, which has destroyed its corporate houses and development of the economy.
— Kamal Singh Surana, Arcvac Forgecast
Ambitious, not unachievable
When the prediction for growth is 10 per cent next year, setting a 20 per cent target would be ideal. Setting the target at 40 per cent when the prediction for growth is 10 per cent growth will only resign the sales force to failure from the beginning. Whenever we set targets, they have to be slightly beyond reach. Only when people believe that the target is achievable will they make an extra effort to reach it. Targets should be ambitious but not unachievable.
Incentives should only be given if the employees achieve 20 per cent growth.
— Prof. S. N. Soundara Rajan, Saveetha School of Management, Chennai
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.