Span of Control: Sales

Span of Control: Sales

KPI Details

Span of Control: Sales measures the efficient distribution of management and staff-level employees within the organization's Sales function (i.e., organizational design). While a high value for this metric is preferred (i.e., numerous sales representatives are reporting to each individual sales manager), an excessively high span of control may indicate that managers are spread thin (i.e., too many direct reports), which may adversely impact work quality, service levels and productivity. A low span of control may indicate that the organization is spending money on an unnecessary number of management positions.

KPI Definition

The average number of sales representatives reporting to each manager working within the Sales function.

KPI Best Practices

• Frequent and effective communications between managers and employees
• Hire self-motivated employees that work well in teams to minimize supervision needed from managers
• Implement career paths for advancement to reduce turnover and increase employee motivation

KPI Calculation Instructions Span of Control: Sales?

Two values are used to calculate this KPI: (1) the total number of sales representatives within the Sales function, and (2) the number of managers (i.e., employees in any management position, no matter how junior or senior) within the Sales function over the same period of time. Do not include sales support/administrative employees in this calculation. An employee is considered to be in a management role if they supervise a designated area, team, or process within the organization, and they oversee any number of subordinate employees. Count both full-time and part-time sales representatives in this calculation.

KPI Formula :

Number of Sales Representatives / Number of Sales Managers