The RACE? model

This model for Management by Objectives breaks a global, regional and local strategy down into firm activities, development and support at the level of the sales rep. The model is widespread and has been tried and tested globally, and it provides a range of values in organizations where it is implemented. It helps sales staff to plan and execute relevant activities to optimize sales with the highest potential.

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RACE stands for: Results, Activities, Capability and Energy – four aspects of a successful sales job.

Figure: The RACE Model?

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E stands for Energy

We begin explaining the model from the bottom enabler. The E means the energy, the enthusiasm, and the endurance needed to perform. Without sufficient energy and enthusiasm we can never perform at a high level over time. The model helps us to observe our own level of energy so that it doesn’t become too low. It reminds us to take action in time, should our energy start to decrease. It reminds us to have somebody to talk to about our own enthusiasm and energy, and to talk to our staff about it.

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C stands for Capability, including Competence

To execute sales activities with high quality and impact we need the right conditions and competence. With new demands on the activity (as in selling to a new segment, selling a new product or implementing value based selling), the demands on the competence change, new tools are needed as well as additional support. Benchmarking, best practice and sharing of experiences are valuable tools.

The model reminds us that we should continuously develop and that we need to define the sales situations of the future that we need to develop ourselves for. What skills are needed, what knowledge is needed to handle sales situations in the future? What tools and processes have to be implemented to manage these new situations? Without the right competence, capability, tools and support, we will not be able to handle these situations.

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A stands for Activity

Activity is the main leading indicator for future sales results. The model reminds us that we need to consider if we are carrying out the right activities. Are we working in the right direction – selling the right products/solutions to the right customer, segment and contact? Are we putting in enough quantity – number of visits, number of offers, number of customers in the pipeline? Are we working with the right quality and sufficient impact? Quantity, direction, quality are all different aspects of the different activities we do.

All this together: Energy => Competence => Activities are dependent on each other, like a chain of cause and effect. Using the model professionally leads to the desired results short term and long term.

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R stands for Results

R are the sales results we are aiming to reach, such as volumes, margins, product mix and customer mix targets. The R objectives have to be specific enough to make it possible to attach the specific activities needed to reach each objective. Selling to new customers compared to existing clients, or selling a new product compared to reselling an existing product will need very different activities. Hence you must be specific with your objectives to enable the relevant breakdown of activities.

To reach result objectives we need to define activity objectives that will take us where we want to go. To be prepared and able to do these activities, we need to define the competences needed to do the sales job effectively and set competence development objectives accordingly. Finally, we need to assure the energy and enthusiasm to do the sales job.

The results targets should of course be linked to the company’s strategy. If for instance the strategy tells us to increase the percentage of particular products, to focus on a particular segment, or that a certain percentage of sales should come from value based selling deals, we must also have clearly defined objectives for that on all levels: Global, country, team, and sales rep. The strategy is, or should be, linked to the company’s overall goals and vision.

This way, overall goals and the vision, via the strategy, are broken down into concrete goals, and then into specific activities to achieve those goals. Based on these activities, the need for development and support is affected at the sales rep level, with consideration for energy and motivation. Sales staff make and own their own plan, and get suppport to develop and improve performance. This way RACE creates empowerment and improved performance by providing a structure and a systematic approach.