A few years ago, I wrote this article on capacity planning with an approach that capitalized on regional management buy-in to pave the path to achievement. Since then I’ve had several requests from Sales leaders to expand and improve the model as most of them are in small start-ups without the availability of a resident Excel master.
The expansion of this model includes a breakout of monthly quotas, instead of just quarterly, and independent ramp parameters by role since, for example, the new hire ramp for an Account Executive is likely to be longer than for an Inside Sales Rep.
Given the data in this model calculated at a monthly level, even if you only assign quotas on a quarterly basis, this model will produce slightly more accurate quotas as well as provide monthly targets for intra-quarter productivity benchmarking by management.
All of the spreadsheet wizardry aside, the real benefit in this approach is giving your regional sales managers actual control over the allocation of targets for their team members, thus increasing their own buy-in to their quota.
If you are interested in optimizing the effectiveness of your quotas I recommend you read the original article and download the latest model to check it out! As always, any comments or suggestions to further improve it are welcome!