Here's the copy Flynn sent me. Press play to see what I think of it.

"11-Your stats are worthless

The collecting of stats for measuring performance is a frequently discussed subject.

Managers are constantly asking what stats should I collect and how do I know if they're good.

I suggest you take a different approach, and here's why

Rep 1 made 74 calls, Rep 2 made 39 calls, who did better?

Either pick you made could be wrong.

Why, because you don't know what the calls produced.

So let's add some data and try again.

Rep 1's 74 calls produced $4400 in revenue, while Rep 2's 39 calls produced $8630.

So who did better?

Ah, you changed your mind; it appears Rep 2 is the better salesperson.

Sorry, wrong again

Rep 2's $8630 in sales was from two existing clients who reorder every year at this time. This means that Rep 1's calls actually were more valuable.

The point of this little exercise is to show that stats without context don't say much.

You can only compare stats when you understand what created them. They must also measure the same thing.

If you compare two reps call numbers, one who made prospecting calls, another who made follow-up calls, you will not have a stat or measurement of any value.

You must compare apples to apples or you get mixed fruit, not apples.

Measuring Your Team Stats

First Step: Determine the primary result you wish to achieve.

In most cases, this is probably a sale, so this is the primary statistic.

Second Step: Determine the key results that produce the primary

These might be the following: calls, emails/letters/faxes, presentations, demos, referrals.

Since each of the above is a necessary step in achieving the primary results, you must measure them too.

Third Step: Brake the types activities up into individual groups

For example:

If you are measuring calls, measure each type (prospecting, follow-up, referral, closing etc.), so you can compare like stats to each other.

Forth Step:

Before comparing the various stats, make sure you remove anomalies or biases. An unusual sale, a weak territory, a strong territory, and a new rep are all things that may change the stats.

You must account for them in your comparisons or forecasts.

Fifth Step:

When comparing various types of contact by method or prospect, listen to or review the communication for quality.

In order for your stats to be of value you must also know that a higher or lower number is the result of an equal quality effort. You need a "quality score for each rep as well.

With this data, it is possible to use the stats effectively. Here's a simple example.

Rep 1--40 prospecting calls-2 prospects

Rep 2--60 prospecting calls-6 prospects

Rep 3--80 prospecting calls-6 prospects

If we analyze these stats, we see that Rep 2 got more prospects per call than Reps 1 and 3. We see that Rep 3 was the most productive and Rep 1 the least by quite some margin.

Typically, you won't have the results of these calls immediately, and without them, the numbers may fool you.

However, if you listen to the calls, you can quickly determine the quality of each reps prospects.

This may tell you Rep 1 did the best job, as Reps 2 and 3's prospects are not qualified and likely won't result in sales.

Or it may tell you that Rep 3 is blowing through calls and missing opportunities that Rep 2 is not. Rep 2's better quality prospects are due to a couple of extra steps Rep 3 is not taking.

All of the above is information you cannot determine without listening to the calls and accessing the quality of the effort.

Without a quality score and direct comparison of the same activity, your stats will be worthless."

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