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Sales Capacity Planning vs. Legacy Planning

Another Interesting Case Study to Read
Past Sales Practices Blocked the Future

When the principles of lean are applied to the sales organisation, the results can be outstanding
For those involved in manufacturing environments, capacity planning is the core of production efficiencies. When a similar methodology is applied to sales organisations, the results can be immediate upturns in sales revenue. Often the difference from perception, legacy planning, to reality, capacity planning,  can be drastic and in the case of this well-established business. After analysis through a sales improvement review, it became apparent that what the business was capable of delivering was in stark contrast to what it delivered.
Results

  • Cash profit increase on realignment of budgets/quota: $32,000,000
  • Increased performance capacity of 34 per cent, equating to a 2.2 per cent increase in EBIT

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