Who's to Blame?: A Bayesian Decomposition of Efficiency in Hierarchical Sales Organizations

Topics:
Competitive Strategy,
Incentives and Compensation
Tags:
Bayesian,
Sales,
Sales Force,
Sales Force Management,
Sales Strategy,
University Of Rochester
Source:
University of Rochester

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Overview: An efficient and effective salesforce provides a firm with a competitive advantage in today's marketplace. An important ingredient in achieving such a salesforce is the ability to measure, evaluate and compare the performance of individual salespeople. Unfortunately, the methods available in the extant marketing and sales literature are ill-suited for such tasks. Further, most methods and metrics used for these purposes fail to account for the impact organizational hierarchy has on productivity. In this paper one develops and implements a methodology that estimates salesforce efficiencies, allocates them to their rightful "Owners" within the hierarchy, and provides a framework via which to evaluate and compare salespeople, territories and sales regions.

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Format: PDF | Size: 411KB | Date: Nov 2004 | Pages: 39

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