Transforming the QBR Process

If you work in sales or are part of the commercial team, you have probably participated in the quarterly business review process.?

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In this article we will cover:

• Rearview vs Windshield Metrics
• The role of the salesperson and the sales manager in the QBR process?
• The future of the QBR

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The Traditional Process - Salesperson

In many sales organizations, the quarterly business review meeting or quarterly business planning meeting is typically one that happens between a salesperson and their manager at the beginning of a quarter or at the end of a quarter.?

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The salesperson will typically build a slide deck or work from an existing formatted deck (sometimes with pre-populated data) which could include:

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"Rearview Mirror" Metrics (lagging indicators - what has already happened that you can no longer control)

• Previous quarter quantitative results vs goal (key performance indicators)
• Previous quarter qualitative results (non-metric-based successes)
• Progress on previous quarter key strategic initiatives which align to the strategic goals of the organization

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"Windshield" Metrics (leading indicators - what you are going to do in the coming quarter to achieve your goals)

• Current pipeline
• Current territory trends for key performance indicators measured in quarter over quarter or year over year results
• End of quarter/end of year forecast?
• Strategic initiatives aligned to strategic goals within the organization

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As with any metric, a question that should be asked is "what are you really trying to measure".? If you are focused on revenue, do you only want to know how you will finish that quarter or do you want to know what strategies are in place to ensure continued success?? If the organization knows what the best salespeople are doing to build their pipelines, you may be able to replicate this success through a targeted training program.

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Examples of lagging indicators for a medical device business might be:

• Revenue
• Market Share
• Implants/Installs
• Customer Retention Rates

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Examples of leading indicators for a medical device business might be:

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• Sales Pipeline Stage:?Number of prospects in advanced stages of the sales funnel.
• Product Trials:?Number of ongoing product trials or evaluations with potential clients/end users.?
• Market Penetration:?Increase in the number of new accounts, healthcare facilities or physicians.
• Customer Inquiries:?Volume of inquiries or requests for information about new devices through trade show, digital or sales rep requests.
• Training Attendance:?Number of healthcare professionals attending training sessions on products.
• Demo Requests:?Number of requests for product demonstrations, in-services or sample product.

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The Traditional Process - Manager

All of the process above is the same for the sales manager with a few key additions.?

Salesperson Business Review and Planning :? The sales manager first must hold conversations with all of the quota carrying members of their team to assess the health of the overall regional/area business and provide coaching/thought partnership to help the territory achieve their quota.? Once this is done, they can then create their regional/area QBR for presentation to leadership.

The sales manager may also hold a quarterly business review meeting for their team in which each salesperson presents their QBR slide deck to the region.? This is a great way to get feedback from peers on approach and leverage the diversity of experience of the group.?

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Manager QBR Preparation for Leadership:? The sales manager will present their final deck where they will highlight the successes of their team and share where they see challenges on each team that may affect the ability of the territory to achieve their goal.? The manager will usually show the territory's plan to overcome the obstacle or to make up the potential loss elsewhere.? The manager will also outline a contingency plan for this showing how they can make up this revenue through overachievement in other territories.?

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Optional Addition - Team Metrics and Performance Review:? The sales manager's QBR may also include a section on their team.? For some organizations, this review asks the manager to stack rank their team based on overall proficiency in their role.? Others could ask the manager to assign a metric like a letter grade to the performance of those on their team.

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This metric is not a static measure, but instead measures the success of the salesperson in several areas.? These areas could include goal attainment, KPI achievement, sales ability, problem solving, business acumen, administrative, attention to detail, teamwork and professional development.

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This slide will typically be presented to the manager's manager (the second line leader) and possibly the manager above them (third line leader).? The best leaders will read through these decks at minimum and will often provide notes or feedback to be passed down.?

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Optional Addition - Manager Development:? The sales manager may also include a slide in which they discuss their areas for development and what they are doing to improve in these areas.?

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A Note to Salespeople:? The better a salesperson prepares their manager to represent them in the QBR session, the better they will be represented to the leadership team.? Your manager is your emissary to the corporate office and leadership team.? Clarity of thought, strategic approach, problem solving, and quantifiable success metrics highlight the salesperson's sales prowess and leadership capabilities.?? The better they understand your business plan and strategic approach, the better they can share your skill set and successes.

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The Future of the QBR

The evolution of data and data platforms is transforming the traditional approach to Quarterly Business Reviews (QBRs) and business planning. Many organizations are shifting from slide deck-based presentations to QBRs delivered directly through their CRM systems, such as Salesforce, HubSpot, Dynamics, or PowerBI. This transition to a platform-based approach not only creates a unified and consistent presentation but also enhances visibility and reduces the administrative burden on both salespeople and sales managers.

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One significant advantage of utilizing these platforms is the ability to track and measure progress on initiatives in real time throughout the quarter. Traditionally, the QBR and its companion, the business plan, are developed at the start of a quarter and often remain "in a drawer" until the next review. While the initial creation of these documents involves thorough strategic thinking, this approach captures only part of the value.

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As Andy Grove, former CEO of Intel, famously said, "reports are more a medium of self-discipline than a way to communicate information." Integrating the QBR and business plan into your CRM system enables continuous updates and visibility of progress throughout the quarter, embodying this principle of self-discipline. It combines deep strategic planning with actionable execution.

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By incorporating the QBR and business planning into CRM systems, organizations can facilitate real-time updates and foster ongoing strategic thinking. However, this approach hinges on the quality of data entered into the system. The accuracy and depth of the insights derived will reflect the quality of the information inputted. When salespeople and managers fully embrace this method, they can reduce administrative burdens, improve clarity on business outcomes, achieve better resource allocation and overall success.

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?Conclusion

The Quarterly Business Review (QBR) is a critical process for both salespeople and managers, offering a structured way to assess past performance and plan for future success. By examining both?lagging indicators?(such as revenue, market share, implants/installs, and retention rates) and?leading indicators?(like sales pipeline stages, product trials, and customer inquiries), organizations can gain a holistic view of their performance and set actionable goals.

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For salespeople, the QBR traditionally involves reflecting on past metrics and strategizing for the upcoming quarter. This includes analyzing results against goals and planning initiatives based on current trends and forecasts. Managers, on the other hand, play a crucial role in evaluating their team's performance, providing coaching, and presenting a comprehensive review to higher leadership, often including detailed assessments and performance rankings.

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Looking ahead, the future of QBRs is being shaped by advancements in CRM and data platforms. These tools are transforming the traditional slide deck approach, making it easier to track progress in real-time and reducing administrative burdens. By integrating QBRs into CRM systems, organizations can ensure that both salespeople and managers are continually updated on their initiatives and performance, fostering better strategic thinking and more effective resource allocation.

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As the landscape of business reviews evolves, embracing these modern approaches will not only streamline processes but also enhance overall organizational agility and success.

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