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Setting the Target, how?

Hi,

I hope you are doing well and are safe/healthy.

I have a question for all the sales directors/VP Sales and I hope I have the right channel for this.

I was always curious about how a sales target is calculated, how the increase in the target is set.

Let me explain. Let's say we have 3 scenarios:

Target is to close 1M in 2020

#1 You underachieve for XYZ reason and finish the year at 900k

#2 Bingo, you finish the year at 1M = 100% of your target

#3 Champion, you deliver 1.5M = 150% of your target.

The company you work for has a 20% growth in 2021.

My question to you Executives Sales 🙂

Are you going to apply the 20% :

Scenario #1 - on my 900k since I underperformed, which will give me a 2021 target 1,080,000?

Scenario #2 - on my 1M (which was my 2020 target), so my 2021 target would be 1.2M?

Scenario #3 - On my super achievement 1.5M, so my next target would be 1.8M?

Do you also calculate target based on region/countries?

If the company has a 20% growth target in 2021, do you simply apply the 20% growth to your region/salespeople or EMEA could get a 30% increase because xy reason and APAC could get a 10% only?

Thank you for your help and for making sure I understand how that works 🙂

enjoy your day

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