Headcount Planning

Sales Capacity Planning For Growth and Productivity

Ensure the Right Capacity to Cover the Market for the Right Investment

Organizations often question the required capacity needed to meet growth objectives. M&A, new product launches, market shifts, changes in salesforce structure or regular annual planning require a closer look at market coverage, capacity and sizing.

Alexander Group has experience working with leading companies in rapidly changing business environments to determine the capacity for sales and service roles to achieve growth goals.

Sales Capacity Planning Models

Organizations need to evaluate the capacity required to efficiently serve current customers and reach new markets and customer segments to achieve new or existing growth objectives.

However, organizations can only accomplish this after defining the types of sales and service roles to deploy. Success requires determining the right capacity needed for effective market coverage while generating the best return on that investment.

Several capacity planning models exist to determine the total headcount required to meet your revenue goals. These models include:

  • Workload model: What is the total workload required for each account segment, including the number of in-person visits or phone calls needed to close a deal for new vs. existing customers? What is the selling capacity available, including the number of available hours per seller?
  • Revenue model: What is the total revenue for each account segment? What is your target productivity per seller?
  • Account ratios: What is the market benchmark for accounts per rep by segment? How extensive is the organization’s account list? What is the anticipated growth for each account?
  • New market opportunity: What is the total market opportunity based on external market factors specific to the industry? What is the target for market share growth?
  • Headcount ratios: What is the market benchmark span of control for each service, support and management role? How many sellers are required for each role?

These capacity models address your organization’s unique needs and dynamics but must be chosen carefully to ensure your sales team’s success.

Alexander Group can help determine the appropriate capacity planning model, sizing method and sales headcount required to reach your revenue growth goals.

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