The Customer-Centric Performance Measurement Model: Three Indicators of Success

Effective performance management centers around a planning process. We have seen different approaches to the planning process work effectively in different companies. Increasingly, we see companies redefining their planning process to focus first on customers. Many of these processes, however, particularly as applied to the sales organization, often go right to specific measures—volume, gross profit, new accounts opened, and other tactical yardsticks—thereby skipping over what we believe is a strategic framework for thinking about measurement as it applies to sales. Figure 5-2 suggests a customer-centered approach to measurement that is ultimately useful in selecting ...

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