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PERFORMANCE EVALUATION

PERFORMANCE EVALUATION. Introduction Audit Phases Sales Performance Criteria Other Criteria Applying Performance Measures Corrective Actions Summary. Introduction. Factors Affecting Scope and Frequency Degree of Control of Channel Captain Relative Importance of Channel Members

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PERFORMANCE EVALUATION

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  1. PERFORMANCE EVALUATION • Introduction • Audit Phases • Sales Performance Criteria • Other Criteria • Applying Performance Measures • Corrective Actions • Summary

  2. Introduction • Factors Affecting Scope and Frequency • Degree of Control of Channel Captain • Relative Importance of Channel Members • Nature of Product (Complexity, Unit value, etc.) • Day to Day Monitoring Vs. Performance Evaluation • Day to Day Monitoring: • Operational, Routine, Sales Criteria Based • Performance Evaluation • Fundamental, Long Term Based

  3. Phases of Audit • Developing Criteria • Periodic Evaluation Against Criteria • Recommended Corrective Actions

  4. Sales Performance and Other Criteria • Performance Measures (List) • Sales Performance • Of Manufacturer to the Channel Member • Of Channel Member to its Customers • Comparisons of Sales Performance: • As a Historical Time Series • Cross Comparisons with Other Channel Members • Comparison with Predetermined Quota

  5. Other Criteria • Inventory Maintenance • Key Questions • Field Measurement :By Sales Force, By Specialized Firm • Selling Capabilities • Difficulty in Obtaining Sales Records, • Indicators: Number of Salespersons Allocated to the Manufacturer’s Product Line, Technical Knowledge, Interest Attitudes (Should be Measured Proactively, Independently of Sales Data)

  6. Other Criteria Cont’d • Competition • Channel Growth Prospects • Member’s Financial Strength • Member’s Character and Reputation • Quality of Service

  7. Applying Performance Criteria • Separate Performance Evaluations on One or More Criteria • Limited to a Few Criteria, Not Including Overall Performance, Simple and Fast • Multiple Criteria Combined Informally for Overall Performance • Judge Overall Performance, Simple and Flexible • Multiple Criteria Combined Formally for Overall Performance • Creates scale and Index of Overall Performance, Comprehensive

  8. Corrective Actions and Summary • Management Inadequacy, Insufficient Support • Principles in Instituting Corrective Actions: • Institute Information Sharing on Members Needs and Problems • Congruency of Support Programs with Members Needs and Problems • Leadership through Skillful Use of Power • Understanding Constraints of the Interorganizational Setting of the Channel • SUMMARY

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