How to do territory design in less than 2 weeks, without the fighting
More selling, less crying
Territory design can be ugly, and I am discussing more than just the formatting.
The revenue lifeblood of most tech firms depends upon the sales that can be generated.
People want to make money to survive, which is a core need. Salespeople are no different, as they want to hit their bonuses.
If they are presented with a sales territory where they do not feel they can hit their bonus, regardless of how well planned, they are not going to be happy with YOU.
Let's make this process smoother for the salespeople and us - the more analytical techies crunching the numbers.
Data Gathering: The Techy Way to Avoid Wild Guesses
I once sat in a giant conference room with a handful of senior executives to discuss the planning of next year's Marketing targets. To my horror, they were calling out numbers like spaghetti hitting a wall, with no real quantitative backing, no historical trend, and no regard for how many people would be allocated to make the targets. I watched with a pit in my stomach, but I was there to observe only.
They assumed sales would continue to increase with an expansion of the current campaigns within the set geographic areas. However, a few other data people and I saw our models projecting a downward trend due to headwinds.
Sure enough, we did not meet the spaghetti targets that year. Our sales teams were demoralized. Despite the area they had to sell into having "HUGE POTENTIAL GROWTH!" that's all it was - potential. Even our top salespeople could also crack it with the outside changes in the market.
The same meeting next year was greeted with less excitement. I was still an observer, but our more data-focused Marketing people had a larger voice at the table.
The lesson here is to know the data and not social illusions. Social illusions are the idea that a specific territory or campaign is going to be profitable forever without its trajectory changing.
Gather the data, but also focus on the mind and heart. More about that further on down.
Rallying the Troops: Key Stakeholders and How Not to Annoy Them
Last spring, I sat in a session at the RevOpsAF conference, listening to Kevin Davis, the CEO and Co-founder of BoogieBoard, talk about the arduous process of territory planning. Other than that, his program was an excellent solution. A key takeaway was that time is the enemy.
Delaying releasing territories is a big mistake. You do not want the process to drag on for months; you want it done in a matter of days.
Think about it - for those of us in a more technical role (non-sales), would you want to sit at your desk all day and be unable to code or crunch numbers? Wouldn't you feel miserable after a while, especially if you were losing out on your salary? Yes! Congrats - you now feel empathy for what these folks are feeling.
Get going and rally the troops. Corner the sales leaders if you have to. Do not reflect on meetings. Get declined? Reschedule immediately? No response? Ask for one. Rally the decision makers.
How do you avoid annoying them? Frame it in the best interest of their team morale, so they won't be miserable sitting around.
Get the ground rules and exceptions out in the open early. Do not have these delayed rules and exceptions, but move early. Do not delay
From what I could see in the demo, a program like BoogieBoard is an excellent tool. Note: This is not a sponsorship; I am just speaking from my impression. Regardless of the tool you are using, though, rally the troops early. If you are not in a rush to get information to complete the territory model, you will also annoy them less.
Communication 101: Rolling Out Changes Without Riots
Years ago, I proudly presented a territory plan in a small conference room of a Doubletree hotel. My manager and I awaited the applause, but there was none.
Although the territory plan was technically numerically balanced, our sales team should have considered it balanced.
You see, territory design is about equity, not equality. Be empathetic here - it is not just the landscape of territory you are rolling out here but a potential change to someone's livelihood.
Yes, data is important. As mentioned earlier, you want to avoid taking the throw spaghetti at a wall approach. But you do have to account for the nuance.
One rep had a "balanced" ARR he could reach, but that was because 1/4th of it was from one account. One rep had a territory with lots of potential, but he half-joked he would "never see his wife," the amount he would need to fly to cover the territory.
Self-awareness, a key pillar of emotional intelligence here, is important. Be aware that you are a technical, logical person and that you like data. Be aware that your recipients do to some extent, but at the end of the day, they want to ensure that they can make a living. Balance the territories appropriately.
The Final Word: Designing Territories Without Losing Friends
My most recent territory design plan was done in just under 2 weeks, successfully, without much fanfare. How? I learned from my past mistakes an applied the key lessons here.
I gathered the data needed. I started early, so as to not burn bridges and pester people later. I talked to a variety of stakeholders and leaders early to figure out their priorities. I got the exceptions documented early to minimize changes late in the game. I unfortunately did not have BoogieBoard to work with, but I did leverage decent Excel model. I focused on equity vs. equality. Not everyone's territory ARR potential had to be exactly the same!
Remember, territory planning can be done without the ugliness. Learn from my past mistakes, do the opposite, and get moving! I did.
✅ What I’ve been Analyzing this week (reading, watching, listening, etc.)
📖 I finished reading Emotional Intelligence: Why It Can Matter More Than IQ
📺 I watched a clip from the BoogieBoard Tiki Bar to find out more about the underlying current of what motivates people
✍️ I commented on a post by Leihua Ye, PhD on the Tech Valley Substack, about the blurred line between being a nerd and techy
Want more on Empathy and Emotional Intelligence to Elevate your career? 📈
I empower💪tech people to elevate their empathy, to accelerate their careers
Thank you for sharing such an insightful article on territory design! I found the concept fascinating, as it was new to me. I can definitely relate to your observations about the marketing team often being overly optimistic. In my previous work developing campaigns and landing pages alongside marketing, I experienced firsthand how that optimism could lead to unmet targets and frustration. It’s a great reminder of the importance of grounding our strategies in data.