Assuming that a sales organization is available and that production and delivery capacity are not limiting factors, sales effectiveness and sales management are some of the fastest and most cost-effective concrete tools for operations development. Why? They require essentially no investment, can be implemented immediately, and the pay-off is immediate. If we analyze the concept of “sales effectiveness,” we find it is based on two parameters – productivity and value generation.
Productivity reflects the structure, content, and pace of the sales process. Improved productivity helps lower transaction costs, increase competitiveness and, in the long run, raise the value of an operation. In practice, this means that salespeople who carry out many person-to-person interactions probably contribute to high sales productivity – as do sales channels that involve low order-processing costs.