We talk a lot about why dynamic books is a better and more equitable territory design model. But of course it's not all sunshine and rainbows - there are potential challenges with a dynamic books approach.
So let's talk about some of the main challenges and how you can address them.
First, what is dynamic books?
Dynamic book management, or dynamic books, is a modern territory design model that dynamically distributes accounts to sales reps based on account fit and intent and rep capacity, using replacing a traditional geographic-based territory model or a wild west no-territories model. Unlike a more traditional model, dynamic books ensures balanced books, focused sellers, and full total addressable market (TAM) coverage.
With the help of automation, a dynamic books model eliminates the need for manual effort in distributing accounts and territory planning. This modern approach addresses the limitations of a traditional static territory model, including missed opportunities in your addressable market, attainment imbalances between reps, and painful, inadequate planning. Because of this, dynamic books results in more higher potential accounts being worked more often, and sales reps all having an equal shot at hitting quota.
There's a lot more about dynamic books here.
What are some of the potential challenges of moving to a dynamic books model?
There are a few potential challenges sales teams should consider before making the move to a new dynamic books territory model.
Change management
Implementing a dynamic book model may require significant changes to a company's sales strategy and processes, which can be disruptive and challenging to manage. Some teams handle change better than others, so this could be one of the bigger challenges you face when implementing dynamic books.
We know that all effective change management requires communication and collaboration. To address this challenge with dynamic books, get your team involved early. This includes clearly communicating the benefits of the new approach and how these benefits will directly impact sellers, providing training and support to help your team adjust to the new system, and soliciting feedback from your team to identify and address any concerns or issues that arise.
Be prepared to check in frequently, and adjust as you go. Monitor and evaluate progress. This includes tracking metrics, gathering feedback from employees, and making adjustments as needed. More on metrics in a minute.
Sales rep resistance
With dynamic books, reps may be worried that they won't feel as connected to their accounts as they do with a static territory. Reps may feel like they're just working a list of accounts and not building relationships with them over time. They may worry they'll lose access to what they consider their best accounts.
To address sales rep resistance, it's important to involve your team in the transition process from the outset. Highlight the benefits of a dynamic books approach - that reps can now return accounts they can't work, that rep books will be smaller with better accounts, giving them more time with each account, and that they should be more likely to hit quota with better books. This should be a more fair and equitable division of accounts.
You can also show them how they can develop the same kinds of deep relationships with accounts in this approach, and the only difference here is they may be working a different list of accounts. In fact, with a dynamic books approach, they should have more time to build even closer relationships with accounts because they'll be focusing on fewer, higher potential accounts.
Coaching reps on how to work their new, dynamic books of business will be essential to success. You may need to retrain sellers on how to fully work an account so they can keep it in a use-it-or-lose-it model. (Gradient Works Account Coverage can help here, with rep-level metrics on how they're working their books.)
Complexity
Dynamic books may seem like they're more complex than static territories, especially when it comes to managing changes to accounts and book assignments. And it's true - companies will likely need to invest in technology and processes to manage dynamic books effectively.
Well, that's an easy one to address - you'll want to invest in the right kind of technology to help you manage this approach. It's extremely difficult and time-consuming to do dynamic books manually. Happily, that's why Gradient Works exists! Gradient Works automates the full dynamic books process, which will save you manual time and effort, and ensure reps are always working the right accounts.
Data management
Managing and maintaining accurate data is crucial for dynamic books to work effectively. If CRM data is incomplete, inconsistent or inaccurate, it can lead to issues with account distribution and assignments.
However, data hygiene issues have always plagued territory design. If you have bad data, you can't effectively distribute accounts to work. So in that sense, dynamic books won't be any different from any other territory model.
The good news is, dynamic books can lead to improved data quality in your CRM. By moving accounts more dynamically through prospecting cycles and returning accounts with data quality issues, you'll actually improve overall data quality over time. Accounts won't sit stale and untouched, and your ops team will be able to update account data on a more consistent basis.
Performance tracking
Sales teams may need to develop new metrics for evaluating rep performance, which can take time to establish and refine.
Establish clear performance metrics and KPIs that align with your sales goals and objectives. This includes setting goals for each sales rep, providing regular feedback and coaching, and measuring performance against these metrics. It's also important to establish a culture of accountability and recognition, where high performers are rewarded and low performers are held accountable.
Incentivize the rep behaviors you want to see, and track those specific actions. Don't just measure activity, but measure outcomes. There are some great examples of how to track rep productivity here. You'll need to pay attention to how reps work their assigned accounts, in particular.
Just like with any sales process, there will be challenges to implementing dynamic books. But if you anticipate some of the bigger ones and come up with a plan to address them, you'll be in good shape. And of course, we're always here to help!
