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Activity Management System (AMS)

Also called Activity Based Sales Management System

Traditional management approach

Management within companies usually takes places in two ways: through management by objectives (MBO), and by management by walking (MBW). These are usually not sufficient in real life, though.

Well-defined tasks lead to fulfilling the goals

The AMS answers such questions as „What precisely should we do to sell more?“ Compared to the previously mentioned management systems, AMS offers sales managers information regarding all activities performed (or not) by his sales people.

With this information, he can give well defined tasks to his sales people. These tasks are clear, easily performed and easily measured.

Identification and evaluation of activity

AMS allows correct identification of sales indexes, such as the number of client calls required to set a meeting, and the number of meetings necessary to close a sale. Depending on the type of business, the Activity Related Sales KPIs can become very sophisticated. This information is a very precise tool to measure and influence sales performance.

The heart of AMS is the activity report. It should be simple and practical so that the sales people are not burdened with multiple forms. Formal or incorrect reports do not fulfill their purpose. Activity reports may be in a form of SMS, or an outline format, but never in full sentence structure. Quantity and also quality is recorded.

AMS pinpoints where needed personal skills training is required. A sales manager who is correctly using the AMS will be able to determine which training is necessary and the effectiveness of the training.

Long-lasting impact of a clear system

Activities are the key ingredient for the AMS. When beginning to implement AMS, calculations and transformations of the sales goals towards concrete activities are performed. Then the methodology for achieving the sales goals is set. Based on this concrete information, a good sales manager is able to manage the activities of his sales people.

Results, though, depend also on the ability of the sales managers and the sales people to accept the activity concept and its management. Therefore, it is important that not only data be of good quality, but also that the system is clear and understandable.