ABSTRACT
This chapter discusses the objectives in the process of evaluating sales organization effectiveness. The discussion on how benchmarking and Six Sigma can be used to improve sales organization effectiveness is discussed. It also discuss how sales, cost, profitability, and productivity analyses can be conducted to evaluate sales organization effectiveness. The analysis begins with total sales for the sales organization and proceeds through each successively lower level in the sales organization. Sales and cost data can be combined in various ways to produce evaluations of sales organization profitability for different organizational levels of different types of sales. This chapter covers three types of profitability analysis: income statement analysis, activity-based costing, and return on assets managed analysis. There is no easy way to evaluate the effectiveness of a sales organization. So it recommends to perform separate analyses of sales, costs, profitability, and productivity to assess different aspects of sales organization effectiveness.
