A company is built of people. From person to person, company risk tolerance varies greatly. It runs the total gamut from the person that is so risk-averse that they go into anxiety every time they leave home, all the way to the person that will dive headfirst and go all in on any deal.
The people with these greatly varying risk tolerances are located at all levels of a company—from owners, to executives, to sales managers, to salespeople. Much of the time the bigger risk-takers are lower down the management ladder and are held in check by upper management. For example you might have a salesperson that makes promises upon which the company cannot deliver. Ultimately, in most companies, that salesperson would be disciplined or fired due to the high number of refunds or even lawsuits (if it is a high-ticket item), and violations of company policy about what can and cannot be promised to a prospect.
Sustainability, Risk and Volkswagen
In normal conditions, especially in companies with greater longevity, owners and executives have an understanding that there is a balance between risk and sustainability. Company and product sustainability is directly related to the risks involved with the sale, the product itself and the customer.
It occasionally happens, though, that company management and even owners lose sight of the fact that risk and sustainability are related, and go completely overboard with risk. A fantastic case in point comes right out of today’s headlines—that of German auto maker Volkswagen. VW is now embroiled in scandal for programming their engines to fabricate emissions results. It is evident that company management didn’t consider the risk-versus-reward of such a move and somehow thought “it was all worth it.” Now everyone else can see—even if VW management cannot—that the risk was certainly not worth it. The company, or at least a portion of it, has had its reputation trashed, has been greatly devalued, and has had all of its employees put at risk.
Even It Out
In order for a company to operate smoothly and sustainably, there must be a thorough understanding from the bottom to the top of the risk that is to be taken in deals and with company resources. Owners, management and employees must all have an equal understanding of—and agreement with—that risk.
In that sales is the primary revenue source for a company, a great portion of that risk understanding must occur with sales. Salespeople, sales management, upper management and owners must share the same view of opportunity risk being taken.
Company Risk and Pipeliner CRM
Pipeliner was created so that all levels of a company can share this insight. Through instant intelligence visualized, its intuitive design, and its use of leading and lagging indicators, Pipeliner creates the most accurate picture possible of risk factors as they relate to leads and opportunities.
Risk can then be properly evaluated for:
• Individual opportunities
• individual reps
• sales units or individual territories
• the sales force
• the company as a whole
Pipeliner allows you to evaluate opportunity risk like no other CRM.
Find out for yourself and take a free trial today!