Tuesday, February 21, 2012

Sales Program using the risk type and new APQC Business Process

Answering a question about the best way to describe a sales program to ensure management support by highlighting the system relationships.  

All parts of the system; with the components in the system that enable the system.  

A simple way to understand your program using a generic way to define the companies risk or strategy.

Components that make up system

  1. Make and Model of a Car or Vehicle 
  2. Supplier traveling South to build the vehicle
  3. Feedback loops through engineering and marketing who developed the supply and demand. 
  4. Exit criteria for South bound movement to Northbound supply.  
  5. Drivers the demand; acquiring the ready vehicle as part of the revenue stream (driver enters the highway traveling North).  
The approach and guidelines you are using to ensure all components and relationships have been holistically included in the program.     
  1. Fast Lane - Is the program targeting moving current inventory to make room for a maturing new line?  
  2. Middle Lane - Are you targeting a maturing offer to move into the fast lane?  
  3. Slow Lane - Does your program promote the right skills for every new offer or competitive advantage?  
The structure is designed in a way to promote the systems objectives.

Transparency and Accountability measures.  
Did the program meet and retain the correct lanes of travel based on the industry definition?
Did the supply meet the demand and therefore the model was fair? 

When a gap exist in a balancing loop you have a plan to adapt to the gap.

Balancing loops 
  1. Current state
  2. Desired outcome or condition
  3. Gap between these two
  4. How you are responding to the gap

We can assume that traveling South entails the parts of the system that your program relies on and this should include the way you've developed the sales plan and the sales forecast.

Feedback Loops
You are working with your partners in engineering and marketing to ensure the forecast will have a feedback loop into any improvements. 

Objectives of the program; fairness, recognize high performance, provide transparency, hold people accountable.

Assume you are promoting a make and model of a car; you are targeting ALL drivers and you are going to measure the effectiveness based on the car entering the highway.  

Group Editing Link

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APQC Business Process Framework

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1 comment:

  1. A maturity type enables a company to aggregate their risk into 3 types.

    High - Slow Lane
    Medium - Middle Lane
    Low - Fast Lane

    As shown in the map above-a high technology company has innovation or new emerging technology solutions in the slow lane. Different resource requirements, different revenue treatment and many chances to enter and exit the highway without slowing down the middle or fast lane.

    Many chances to start new or exit one for a new combined with other technologies.

    I would also use this lane fast tracked to the middle lane to integrate acquisitions.

    Preventing disasters resulting from an acquisition integration nightmare.


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