Revenue is not a measure of sales performance

It seems obvious that revenue is a measure of the value generated by your sales department. But, in most industrial businesses, this is not even vaguely correct! Monthly revenue receipts are actually a better indicator of the performance of Operations than they are of Sales. Revenue comes from transactions. But where do transactions come from? Well, most transactions emerge from commercial relationships—not directly from the efforts of salespeople.

Salespeople are responsible for winning commercial relationships (accounts as we call them). But, once an account is established, most transactions are programmatic. Salespeople are not—and should not be—involved with them.

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