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AE & SDR Performance Guide "Run the Business"

AE & SDR Performance Guide "Run the Business"

Account Executive/SDR Performance Guide

Run the Business

Last Updated: 2/23/2023

    

 

 

Overview

The best working relationships and environments exist when we have full clarity on what we are committed to. This guide provides performance standards for Account Executives/SDRs in quota bearing roles, including both inputs and outputs that are measurements of overall progress and success. 

Goal

To make it clear what minimum standards look like, what mitigation measures will be taken, when performance improvement plans will be implemented, and remove ambiguity from performance reviews.

Background

Account executives are paid a combination of salary plus commissions, based on their OTE (on target earning) plan. Employment as a salaried employee is contingent on the expectation to meet minimum standards of performance, where commissions are paid through goal attainment. This is detailed in our Employee Handbook as follows:

 

“All employees are expected to meet performance and conduct standards in their areas, and to follow Dandy policies and procedures. Generally, at Dandy’s sole discretion, any employee who demonstrates unsatisfactory performance should be counseled or warned in order to provide that employee with an opportunity to improve. Dandy’s response to misconduct, however, may require immediate termination without prior counseling or warning.

Note that as an “at will” employer, employees may be terminated at any time without process. The following procedures may be utilized at the discretion of the Company.

Dandy’s progressive disciplinary process, when utilized, may occur as follows:

 

  1. Performance standards that are clear, specific and measurable are to be communicated to employees.

  2. If an employee’s performance against the standards is unacceptable, that employee is to be counseled by supervisory recommendations for improvement.

  3. If improvement is not evidenced or has not yet reached an acceptable level, the employee in question may be warned in writing.

  4. If improvement is not evidenced following written warning, then the employee in question is subject to additional disciplinary action up to and including termination.”

 

Performance Standards

As a sales team member, our number one priority is to proactively source and build an outbound pipeline, which we then convert to revenue. Each team member has an individual quota and is responsible for understanding sales pipeline management, which will create a pathway for attainment of their individual quota. While some may find the ability to close more revenue with less pipeline, we provide the following as minimum standards for 

pipeline performance:

  1. At least twenty new opportunities sourced and created in Hubspot per week

*AND/OR

  1. 4X pipeline coverage to quota per month (if monthly quota is $50K, pipeline standard = $200K per month = $50K per week)

 

While pipeline represents the necessary input towards success, booked revenue represents the output, which is the lagging indicator of performance. We offer the following guidance for 

revenue performance:

  1. At least $100K revenue generated per month (sales order, PO, or other approved)

*AND/OR

  1. At least $300K revenue generated per quarter (minimum standard)

*Not all weeks and quarters are equal, which is why we leave room for “AND/OR” as we evaluate performance as equitably as possible 

 

The business counts on us to provide reliable forecasting for predictable revenue. We offer the following guidance for 

forecasting accuracy:

  1. 90 day rolling forecast (into subsequent quarters) provided weekly in Hubspot

  2. Current forecast within 30% margin by first month of quarter, 20% by second month of quarter, 15% by final month of quarter (margin= 10% up or 5% down)

*AND/OR

  1. One deal less than forecasted / three deals more than forecasted

 *Not all weeks and quarters are equal, which is why we leave room for “AND/OR” as we evaluate performance as equitably as possible 

 

Mitigation/ Performance Improvement 

 

At any time the above minimum standards are not met, your responsibility is to create a “gap to goal” review with your manager. In this review, you will share relevant Account Plans, collaboration with SDR, and prospecting strategies in order to build appropriate pipeline and convert subsequent revenue. Upon that review, your manager may elect to implement a formal Performance Improvement Plan with time bound elements, or may use regular 1:1 planning documentation to monitor progress. In either case, if performance has not met the minimum standards in a time period deemed appropriate by your manager and no pathway forward is visible, further disciplinary action may be taken, up to and including termination. In general, we tolerate bad weeks and rough months, but start to implement mitigation plans when entire quarters pass without improved production. Most performance improvement goals with your manager will include monthly metrics for improvement. We commit to providing coaching and timelines to correct the challenges or gaps prior to formal discipline.

Additional Standards

CEO Of Your Territory

We count on each AE/SDR to lead out and take ownership of their book of business.. This includes strategic account planning, target prospect identification, lead generation strategies, and hosting regular meetings with necessary cross-functional team members to support revenue growth and business development as needed. It is the responsibility of the AE/SDR to set recurring meetings and provide the key metrics and performance indicators for your business portfolio (SQL’s needed, pipeline needed, daily/weekly activity metrics, coverage to quota) to ensure progress is being made and all team members are mutually accountable to the success. We will provide a “Rep and Cadence Guide” in the coming weeks to serve as a template for success that you may leverage to improve your collaboration. 

 

Critical Selling Seasons

In addition to the attendance and PTO policies outlined in our Employee Handbook, sales team members are asked to refrain from taking time off during the final 7 business days of each month. This is a critical window for finalizing revenue bookings that have a direct impact on the team member, but also the entire business. If you must be absent during the end of quarter, please create and share a plan with your manager to ensure coverage of your open deals, inbound leads, accurate and timely forecast submissions and SDR planning meetings at least 2 weeks in advance of your absence.