Easy Control of Sales Performance

One of the four functional areas of the management control within the Business Navigation concept is the Business Sales Performance (“BSP”). By means of an easy modelling and evaluation of the business results of sale of product series, groups or individual products it conveniently supports the work of sales directors, sales managers, marketing and sales specialists.

Structure

BSP functional area occupies within the Business Navigation System (BNS) a crucial position. It is based on the Sales Performance (“SP”) module, operating in two modes:
1. The Builder serves to set up the plan of sales performance, its continuous updating and monitoring of results. In this mode one may apply also the operations connected with intuitive methods, based on direct insertion or modification of values or formalized methods (namely, the hierarchic, trend, causal calculations).
2. The Analyser investigates the variances between the plan and the reality, their causes and responsibilities connected therewith. In addition to the basic analyses connected with the variance navigation, the system moreover avails of specialized procedures, such as Paret Analysis, regional analysis, multiple-dimension evaluation of indicators, etc. The application is open and enables pro-actively to add other indicators being significant for the interconnecting planning processes.

Indicators of sales performance are grouped in various dimensions (e.g. that of the “product” and the “customer”), which represent an independent view of the sales issue. They may be moreover expressed in more parallel hierarchies selected on the basis of the selling range of goods structure and the customer and market segmentation.

The planning and analytical process is visualized by the sequence of navigation panels. It is just the connection of these basic building blocks of the whole BNS which makes it possible to capture the specifics of the management control processes in various areas of business (such as fast-moving goods, series production, automotive goods, complex projects, tailor-made production, etc.), while observing at the same time the individual style of management of each company.

BNS BSP benefits

• Creation of sales plans and analyses of results is consistent and provides for easy variants and different planning approaches for different product and customer structuring. Thanks to the integral nature of the methodology the plan may be updated on a continuous basis.
  
• Multiple-dimension planning and reporting of results offers managers an integral and graphic view of the sales performance. They may therefore identify new business opportunities easier.
  
• Continuous, variant and flexible sales plans make it possible effectively to cope with the market uncertainties and to eliminate the risks. The sale may be analysed, planned and controlled so that achievement of the targeted figures is the most probable.
  
• Variations between the sales targets and the achieved reality are monitored automatically, which guarantees that managers are informed of any deviation from the required development trend and navigated to remedial measures in due time.
  
• Thanks to BNS the sales management is transparent and provides a better overview of the customer creditworthiness and effectiveness of sales channels. It enables to work with customer profit and loss accounts. It gives managers the tools by means of which the product portfolio may be developed in a balanced way and the regional expansion controlled accordingly.

Examples of standard planning procedures

• Extrapolation of the past
  
• Conversion of the past
  
• New sales according to the representative
  
• New sales according to the development
  
• Adjustment of revenues
  
• Adjustment of groups
  
• Sales breakdown inside the group
  
• Sales breakdown inside the period
  
• Adjustment of sales price
  
• Adjustment of the overall customer discount

Examples of standard analytical procedures

• Development in time series
  
• Analysis of crucial indicators
  
• Analysis according to customers
  
• Paret Analysis
  
• Multiple-criterion sales analysis
  
• Plan fulfilment in the period
  
• Indices of changes in the period
  
• Analyses of trends
  
• Regional analysis