“Leadership Challenge
Read “Leadership Challenge: That Sale Was Expensive, I Think” on pages 401-402 and answer the following questions:
You are Barry Jefferson. What do you believe would be important to discuss in a meeting with Grace Hart about the sales costs at Digital Dimension?
What information would you need to know to estimate the cost of making a sales call at the company?
If you were Grace Hart, what questions would you ask Barry Jefferson about implementing a cost analysis
Evaluating performance is more than just deciphering numbers
Explain the difference between performance and effectiveness.
Identify objective measures of salesperson performance, both output and input.
Sample Solution
In a meeting with Grace Hart about the sales costs at Digital Dimension, I would emphasize the importance of understanding our current cost structure, how much we are spending on sales calls and other initiatives, as well as identifying areas of potential savings.
I would begin by asking Grace to provide me with an overview of what has been done in terms of evaluating our current cost structure for sales calls. It is important to understand exactly how many sales calls were made, who was making them and what materials were used in each call. Additionally, it would be beneficial to have data on the success rate of these calls so that we can determine which areas are effective and where resources can be reallocated or reduced.
Next, I would ask Grace to provide detailed data on how much is being spent per sales call across all departments (i.e., marketing team costs, travel expenses related to customer visits). This information will enable us to better estimate what it might cost us if we decided to make changes or add additional services or products into our offering. Furthermore, this information could help us create more accurate budgets for future expenditures.
Finally, I would address issues related to potential savings opportunities that may exist within Digital Dimension’s existing infrastructure and processes; such as streamlining internal communication channels or consolidating resources between teams in order reduce excess costs associated with duplicated efforts and overlapping tasks etc. To do this accurately however, I will need access to additional financial information including estimated overhead costs associated with running multiple offices around the globe (utilities etc.) as well as personnel-related overhead expenditure figures (salary increases due etc.).
Overall, having clear visibility into our current cost structure – both fixed and variable – gives us insights into where money is being allocated so that we can make informed decisions about which areas may present opportunities for improvement without sacrificing quality or customer service standards set by management itself. By getting a thorough understanding of our current situation through careful analysis from all available sources using baseline assumptions combined with regular monitoring over time –we should then be able start optimizing resources thereby improving operational efficiency while reducing overall costs wherever possible..
