How can I maximise my team’s billing in tough markets?
Questions I’m frequently asked #2.
If there’s one question I’m asked most frequently, this is it. And my response always includes looking under the bonnet at data, in particular good old key performance indicators.
Before coming up with answers, leaders of all levels, especially line managers, have to be sure of the real situation, including causes of both obstacles and successes. That way, they are in a position to work together with their teams, to uncover the hidden gems of golden opportunity – because nine times out of ten, those will exist, regardless of market conditions.
But KPI data needs to be used consultatively with people, because hard facts and figures are only half the picture. For billing teams, those are important but so are factors such as capability, self-awareness and confidence. And the wider business has a big part to play too.
Now more than ever, more sophisticated (yet simple) evaluation of KPI data is essential.
Consider this:
1. Using both quantitative and qualitative measures works best, but it also needs to be in context.
Measuring WHAT is done, and how well that converts into the OUTCOMES expected, gives a strong indication of the QUALITY applied. And that’s worth looking at, because gaps and room for fine-tuning are strong opportunities just waiting to be discovered! And that applies across the whole business, rather than sales alone.
2. Anything that works in buoyant markets will almost certainly need to be fine-tuned to adapt to tougher markets, or even changed drastically.
Looking at the mindset (or mood) of target audiences, and how it changes in different situations, is so helpful here. This is a business-wide opportunity that can pay dividends, not only for billing teams’ approach, but also for marketing messaging, and at every single customer touch point.
3. When teams are empowered to use KPI data intelligently for themselves, it can be liberating, the very opposite to micro-management.
The days of hundreds of KPIs being hammered home are long gone. Instead, smart team leaders are empowering their people with a little analytical know-how, helping them to understand the key performance levers at their disposal, and how to adjust them to dial up outcomes in ANY market.
A case in point:
A highly capable senior consultant, struggling to meet the billing level of promotion criteria, was presenting as angry and disengaged. The presumed solution was that it was a simple case of “having to do more sales in this tough market”. And it was wrong.
Through consultation, the reality became clear: a complete lack of confidence, unawareness of how to adapt to market conditions, and the previously successful business development approach was no longer working.
The consultant was encouraged to discuss what was happening, sharing examples and relevant KPI data, that was at the time, being used across the business. Those KPIs were quantitative only, and it was clear that this consultant was working harder than ever before, with very little to show for it.
When asked to consider quantitative measures for the first time, pockets of high success, and obstacles, soon became clear. The underlying problem was:
A lot of work was being done on clients with unfillable jobs (caused by a number of factors).
KPIs did not include job fill ratios.
The poor results had come as a shock; continuing with the old approach was failing; and the impact was demotivation, capability and team-wide low morale.
Clearly, asking this consultant to do more of the same was never going to resolve those challenges. The tough market was a factor, but specific causes were identified as: clients struggling to make hiring a priority; and gaps in controlling processes.
The top line solution, decided by the consultant, was to focus more on the right type of quality clients who were ready to hire, find more clients like them, and include conversion ratios to measure performance end to end. This led to laser-focused BD, and much tighter management of processes, which converted opportunities at levels way beyond industry norms for that sector. Results meant the sales criteria was met and promotion happened three months later.
I’ve numerous examples to illustrate this further (for all market conditions). Here are two at top-line:
A high flyer going from hero to zero in billing, before being helped to realise through KPI data that the cause was sector related. Encouragement to look more strategically, and to change focus to a more buoyant part of the same sector, resulted in a natural, easy and successful transition, resulting in exceeding previous high performance.
A founder refused to consider alternative resourcing solutions for a top biller who was at full capacity. When conversion ratios illustrated that 80% potential additional revenue was being lost annually from that one desk alone, a new resourcing model was introduced and billings on that desk increased by 25% quarter on quarter, over two years.
Final thoughts.
There’s more to using KPI data than simply “getting billers to work harder” in tough times. Used well, it can empower, motivate and unite all teams across whole businesses. That’s why smart leaders have these for all operational areas of their businesses, not just for sales.
Whatever you choose to measure, by including relevant conversion ratios, and digging deeper when using them makes all the difference – and that matters, because in this market, making the most of every opportunity is what counts.