Many companies have now been successful in executing Lean Sigma in sales and realizing benefits that have been obvious only in the case of organizational processes and functions.
Additionally, success stories from innovators and industry leaders demonstrate that this methodology is not only effective, but also useful in providing practice guidelines for employing Lean Six Sigma in sales operations.
Selecting a suitable project focus area
Many organizations have no idea how to apply Lean Six Sigma principles and determine the right type of project for sales operations. Based on the experience and best practices of companies like Xerox, Honeywell, Johnson & Johnson, GE, and others, six types of projects mean the productivity of initial projects.
1. Lead generation
2. Sales proposal procedures
3. Dirty predictions
4. Launch of new products
5. Effectiveness and efficiency of the sales force
6. VOC or voice of the customer
These project areas can be classified into two types or categories. The first four project areas are included in Category 1. These project areas are primarily focused on improving sub-processes for or related to field sales. Very often companies find it easy to get started with Category 1 projects as they are easy to map, identify and visualize. Plus, metrics and data based on process performance are easy to collect and classify. The included processes can be repeated consistently.
Although Category 1 projects create improvements in the effectiveness of internal processes, they may not be able to solely produce revolutionary results that they attribute to Lean Six Sigma initiatives. Projects included in Category 2 are far more capable of generating breakthrough results, as they are considerably more challenging and complex when it comes to collecting reliable quantitative data, distinguishing reliable processes, assessing root causes, and employing solutions.
However, since Category 2 projects have a greater impact on sales processes directly and on the field sales force, they generate resolutions and improvements that make growth marginal and revenues sustainable and significant.
Sales Force Efficiency and Effectiveness Projects (SFE & E)
Companies with sales forces that draw on numerous customers and mean standard products and services are appropriate contenders for Sales Force Effectiveness and Efficiency (SFE & E) projects. These companies typically deal with hospital products and medical devices, pharmaceuticals, information technology, and financial services.
Although the sales representatives who work for these companies have roughly the same customers and market opportunities in terms of competition, products to sell, local territories, etc., there is a considerable difference in how each works and bottom line. representative.
In Six Sigma parlance, if a considerable amount of process variation is eradicated, it will result in a revolutionary improvement in revenue.
Customer Voice Projects
Voices of the Customer (VOC) projects tend to be favorable for companies that have a strong customer segment and market. These companies operate in industries such as automotive, appliances and aerospace, and have a small consultative sales force, which is systematized around a few key accounts. The projects aim at the dynamic penetration of the market or the participation of the clients by identifying the requirements of each client.
These requirements could include a measurable standard of products, relationships, and quality of service that a vendor must meet in order to continue working with an account holder. Certainly, meeting these requirements is not sufficient to ensure continued growth in customer engagement and sales, particularly in light of the fact that competitors on the same account could similarly attempt to increase customer engagement.
Lastly, Lean Six Sigma in sales projects should focus on increasing profitability by running from the top line of business, rather than cutting expenses. As profits grow, so will cost-revenue ratios and sales force productivity.