Your sales volume is off target and trending the wrong way. The challenge is figuring out how to reverse it and whether you are asking the right questions.
Sales performance is one of the most written-about topics in business, yet many executives still struggle when their teams fall short.
The Problem with the Typical Response
Your sales team did not grow revenues as expected last month or last quarter. Or worse, revenues declined. The typical reaction is to restructure the team, appoint a new sales manager, or hire an outside sales training firm in the hope of a turnaround.
Yet months later, results often look much the same. The only difference is a reshuffled team or new faces in familiar roles.
You replaced the head of sales, perhaps some of the sales personnel as well, and it did not reverse the declining revenue trend. At this point, all you know is that your top line did not improve, and your first attempt to fix the problem through team changes was unsuccessful. Either the wrong solution was chosen, or the right one was executed poorly. The pressing problem remains.
A Better Approach: Four-Level Sales Diagnostic
Most companies jump straight to blaming sales leadership without understanding what truly caused the decline. A more effective approach is to work through four levels of questions systematically, starting with the most fundamental and moving on to sales-specific issues only after ruling out other potential causes.
Level 1: Validate the Problem
Before assuming failure, confirm you are measuring performance correctly and understand what has changed. Many sales “problems” are actually measurement problems.
- How was performance evaluated?
- Was it measured against a specific sales goal? If so, how was that goal set?
- Was it based on year-over-year growth, quarter-over-quarter growth, or another benchmark?
- When the targets were set, what support was put in place to reach them?
- Has anything changed since then that could have influenced the results? This could include changes in the sales team, as well as shifts in other areas of the company that have a direct impact on sales.
- Was underperformance spread evenly across the team or concentrated among a few?
- What percentage of salespeople missed their targets?
- For those who missed, were their results atypical compared to prior performance? What reasons did they provide?
If your measurement is sound and you understand the distribution of the problem, move to Level 2.
Level 2: External Forces
Most companies skip this level and blame internal teams when market conditions have shifted. Before assuming internal failure, validate whether external factors explain the performance gap.
- Is demand for your products or services unchanged, growing, or declining?
- Has the competition changed? Did they introduce new products or solutions that compete with yours?
- Have they increased advertising or updated their go-to-market strategy in a way that affects your position?
- Were there logistical challenges that slowed delivery of your products or services?
- What was the financial impact? If that impact mirrors the sales shortfall, the real issue may be logistical rather than sales-driven.
If external factors are stable, move to Level 3.
Level 3: Internal Operations
Sales rarely operate in isolation. Changes in marketing, product, pricing, or customer service often explain sales shortfalls better than sales execution itself.
- If your sales team relies on marketing demand generation, did the number, quality, or timing of qualified leads change during the last period?
- How many leads did the team receive compared with the prior quarter or year? And were those leads of similar quality?
- Is your pricing competitive and aligned with your target market?
- Has the quality of your products or services changed?
- Were new products introduced or existing ones modified?
- Was the sales team trained on the changes, and was the effectiveness of that training confirmed?
- Is the team kept informed about market shifts? Is training or coaching available to help them adapt effectively?
- How is your customer service performing? How is their performance measured, and what feedback are customers providing?
- Has your Net Promoter Score changed?
- How is company culture? Could it have been affected by a recent event?
If internal operations are functioning well, then move to Level 4.
Level 4: Sales Team Execution
Only after ruling out measurement issues, external factors, and internal operations should you focus on sales-specific execution. This is where most companies start, but, unless there is an obvious issue, it should be your last step.
- Is the right sales leadership in place, and are they attracting and hiring the right people?
- Does leadership foster a meritocratic culture?
- Do you have the right sales strategy and process? When were they last reviewed or audited?
- Are your revenues cyclical?
- Did compensation or recognition change? If so, how was that received?
- How are team dynamics? Is toxicity allowed?
- Are strong performers recognized and rewarded? Is coaching provided to those who are behind?
- Do you praise in public and coach in private?
How to Use This Framework
Work through the levels sequentially. Start with Level 1 to validate your problem. If the measurement is sound, move to Level 2 to rule out external factors. Progress to the next level only once you have eliminated or addressed all issues in the current one.
Most sales problems are found in Levels 2 and 3, rather than Level 4. By working systematically, you avoid the costly mistake of changing sales leadership when the real issue lies elsewhere.
Conclusion
When sales performance falls short, the instinct is often to focus on the sales team and its leadership. Sometimes that is the right call.
But sales never happen in a vacuum. Businesses succeed or fail as teams, and performance must be judged within the broader context of operations, markets, and culture.
The real challenge is not just fixing what is visible, but asking the deeper questions that uncover what truly drives results.