Quotas and Target Setting - Project Details / Task List
Tag: quotas-targets
Total Hours: 30h
Structure: Single Milestone (<=50h)
Milestone: Quotas and Target Setting
Description: A strategic planning project that establishes data-driven sales quotas and performance targets for individual sellers and teams by blending top-down revenue goals with bottom-up capacity analysis, territory potential, and historical performance data.
Task List: (Quotas and Target Setting) 1. Assessment & Model Building
Contains: Parts 1-2
| Task | Est | Description |
|---|---|---|
| 1. Pull and Analyze Historical Sales Data | 2h | Extract 12-24 months of CRM sales data to establish baseline performance metrics and identify patterns. End state: Comprehensive data set ready for quota modeling with documented performance trends by rep and territory. • Export closed-won deals from CRM for past 12-24 months including deal size, close date, and rep assignment • Calculate key metrics by rep: win rate, average deal size, sales cycle length, and total bookings • Segment data by territory to identify regional performance variations • Document conversion rates at each pipeline stage (opportunity-to-close rates) • Flag any data quality issues (missing rep assignments, incomplete territory tags) for cleanup |
| 2. Document Top-Down Revenue Targets and Constraints | 1.5h | Interview executive stakeholders to capture approved revenue targets and any known constraints for the quota period. End state: Clear documentation of company-level ARR goals and strategic priorities that quotas must support. • Schedule kickoff meeting with VP of Sales and CRO to capture annual/quarterly revenue targets • Document growth expectations (percentage increase vs. prior period) • Identify any planned territory or market changes that affect quota allocation • Confirm approved headcount plan including new hire start dates • Capture any executive constraints (e.g., minimum quota floors, maximum territory sizes) |
| 3. Audit Current Quota Methodology | 2h | Evaluate the existing quota-setting process to identify gaps and improvement opportunities. End state: Gap analysis documenting what works, what doesn't, and recommended methodology changes. • Review current quota documentation and historical quota files • Identify how quotas were previously set (top-down only, bottom-up, or blended) • Assess whether territory weighting was applied and if methodology was transparent • Interview 2-3 reps on pain points with current quotas (fairness, attainability, clarity) • Document gaps: arbitrary increases, missing ramp schedules, territory imbalances |
| 4. Calculate Territory Weighting Factors | 2.5h | Develop weighting factors that ensure equivalent opportunity across territories regardless of market size or maturity. End state: Territory scoring model with documented weights based on account density, market potential, and historical performance. • Define weighting criteria: account density, market maturity, competitive intensity, historical win rates • Score each territory on a 1-5 scale for each criterion • Calculate composite territory weight (e.g., Manhattan territory = 1.3x, rural territory = 0.7x) • Validate weights with sales leadership to ensure they reflect reality on the ground • Document the methodology for transparency during rollout |
| 5. Build the Blended Quota Model | 3.5h | Create the core quota allocation spreadsheet combining top-down targets with bottom-up capacity analysis. End state: Working quota model showing individual rep quotas with supporting calculations. • Start with top-down revenue target and work down to rep-level allocation • Apply territory weighting factors to adjust for market potential differences • Build bottom-up validation using historical performance and capacity (pipeline coverage × win rate) • Reconcile top-down and bottom-up to create blended quota per rep • Include quota breakdown by revenue type if needed (new business, expansion, renewal) |
| 6. Create Role and Segment Variations | 2.5h | Segment quotas appropriately for different sales roles, motions, and market segments. End state: Quota model reflects role-specific targets (AE vs SDR vs AM) and segment-specific realities (SMB vs Enterprise). • Define quota approach for each role type: AE (bookings), SDR (pipeline/meetings), AM (expansion/renewal) • Adjust quotas for segment differences (SMB shorter cycles and smaller deals vs. Enterprise) • Apply product-based weighting if reps carry multiple products (e.g., 60% core, 25% add-ons, 15% services) • Validate that quota-to-OTE ratio falls within target range (typically 4-6x for B2B SaaS field sales) • Document any exceptions and the rationale behind them |
| 7. Build Ramp Schedules for New Hires | 2h | Create explicit ramp schedules showing quota expectations for new hires at 30/60/90 days. End state: Ramp schedule table included in quota model with prorated quotas for all planned new hires. • Define ramp timeline based on average time-to-productivity (typically 3-6 months for B2B SaaS) • Create milestone expectations: Month 1 (25% quota), Month 2 (50%), Month 3 (75%), Month 4+ (100%) • Apply ramp schedules to each planned new hire based on start date • Calculate impact on team quota coverage (ramping reps contribute partial quota) • Document how mid-period hires will be handled for quota adjustments |
Task List: (Quotas and Target Setting) 2. Validation & Launch
Contains: Parts 3-4
| Task | Est | Description |
|---|---|---|
| 8. Back-Test Against Historical Data | 2h | Validate the proposed quota model by testing it against historical performance to confirm achievability. End state: Back-test analysis showing what percentage of reps would have hit quota under the new methodology. • Apply proposed quotas to prior period actual results (12-24 months) • Calculate attainment rate: target is 70-80% of reps hitting quota • Identify any reps who would have been significantly over or under quota • Adjust model if back-test shows unrealistic attainment (too high = sandbagging, too low = demotivating) • Document back-test results as evidence for methodology defensibility |
| 9. Conduct Scenario Analysis | 2h | Stress-test the model against different business scenarios to ensure robustness. End state: Scenario analysis showing quota implications under best-case, expected, and worst-case conditions. • Model best-case scenario: 20% upside on pipeline coverage • Model worst-case scenario: 20% downside on win rates or deal sizes • Assess impact on company revenue if attainment rates vary by +/- 10% • Identify high-risk territories or reps where quota may be most sensitive • Prepare talking points for leadership review meeting |
| 10. Obtain Stakeholder Approval | 1.5h | Present the quota model to sales leadership for review, feedback, and final approval. End state: Approved quota allocation with sign-off from VP of Sales/CRO. • Schedule quota review meeting with VP of Sales and RevOps leadership • Walk through methodology: data sources, weighting factors, ramp schedules • Present back-test results and scenario analysis as validation • Capture feedback and iterate on specific rep/territory allocations if needed • Obtain formal sign-off before proceeding to CRM configuration |
| 11. Configure CRM Quota Tracking | 3h | Set up quota data in CRM and build real-time attainment dashboards. End state: CRM reflects individual quotas with live attainment tracking visible to reps and managers. • Create custom quota fields in CRM (Salesforce or HubSpot) for annual and period quotas • Load approved quota values for each rep/territory • Build quota attainment dashboard showing: current bookings, quota, attainment %, gap to quota • Configure visual indicators (red/yellow/green) for at-risk, on-track, and exceeding reps • Test dashboard with sample data to ensure calculations are correct |
| 12. Conduct Quota Rollout Meeting | 1.5h | Present quotas to sales leadership and managers before broader communication to reps. End state: Leadership aligned and prepared to communicate quotas to their teams. • Schedule rollout meeting with sales managers and VP of Sales • Walk through the methodology, data sources, and individual allocations • Explain territory weighting logic and ramp schedules for new hires • Provide managers with talking points for rep-level conversations • Address questions and document any concerns for follow-up |
| 13. Communicate Quotas to Sales Team | 1.5h | Roll out quotas to individual reps with clear explanation of methodology and expectations. End state: Every rep understands their quota, how it was calculated, and where to track progress. • Create quota communication package explaining methodology and rationale • Distribute individual quota letters or emails with rep-specific targets • Host Q&A session (live or async) to address rep questions • Provide access to CRM dashboard for self-service attainment tracking • Document FAQs for ongoing reference |
| 14. Establish Review Cadence and Hand Off | 2.5h | Set up quarterly review process and transfer ownership to client RevOps. End state: Client self-sufficient with scheduled reviews and documentation for future quota cycles. • Schedule quarterly quota review meetings (RevOps + Sales Leadership) • Define triggers for mid-period quota adjustments (territory changes, market shifts) • Deliver documentation package: quota model spreadsheet, methodology runbook, CRM config notes • Transfer admin access and ownership to client RevOps • Schedule 30-day check-in to assess early attainment patterns |
Summary
- Total Task Lists: 2 (consolidated from 4 Parts)
- Total Tasks: 14 (one per Step)
- Total Hours: 30h
- Generated from: playbook_quotas-and-target-setting.md
- Generated on: 2025-12-31