Case Studies:

Quota Allocation Process Redesign for a Top Cybersecurity Solutions Provider

CaptureSituation:
This high tech software and services provider had limited rigor in its quota allocation methodology. It was simplistic, one-size-fits-all approach regardless of segment, channel or sales role. Sales and finance were not timely in landing on a final number causing quotas to roll-out late. Regional sales managers had virtually no input or involvement in the goal-setting process.

Challenge:
Breaking into new territories and countries needed increased consideration about the difficulty level, as well as more marketing support, better on-the-ground presence, and more emphasis on in-country support with fluent-speaking staff. Because a lot of the big accounts are US-based, it becomes much more difficult to achieve goals with the remainder of eligible accounts. The company needed to establish a role specific allocation methodology to drive greater accuracy in quota setting (high historic variability in attainments) and accountability.

Solution:
To provide the best service to this company, the Alexander Group implemented a Modified Fair Share methodology for the regional sales manager role (primary seller). The Modified Fair Share reallocated individual quotas to align with opportunity and increase overall allocated quota. Methodology training was provided and the quota allocation worksheet for the vice president’s use and refinement was completed. The company also replaced the one-size-fits-all approach and increased actual allocated quota. They implemented new quota adjustment factors: established performance factors and weights to effectively adjust individual quotas.

Benefit:
With the assistance of the Alexander Group, the company saw improvements in seller buy-in due to a clear approach. With improved quota roll-out timing, salespeople receive their sales quotas on the first day of the new fiscal year or date of hire. The company also improved quota allocation by seller based on territory potential and historical contribution.

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