#Agreement#Compromise

In our previous publication the General Management and the Commercial Management reached an agreement about the Annual Budget by the method "Point of Agreement". This means that unless the normal friction in this type of agreement, the parts leave satisfied and motivated. It has been achieved a significant step to generate the necessary confidence and to meet the established objectives.

Therefore, we have a Commercial Strategy approved by agreement with the General Management. The Commercial Strategy will have reflected all commercial sales and marketing actions necessary to meet the objectives set, in addition to relevant personal and material resources to perform all the defined actions.

Recall that "sales are a result of commercial activities we put on place" and therefore we will need people and material resources to materialize the actions defined.

But we go further because the Commercial Management and throughout his department can "little" do if internal processes do not work according to its commitments to customers. Therefore, in the Commercial Strategy should be reflected in a very clear way which requirements are demanded by our customers to make our offer the selected one and which commitments we have acquired for it.

That is, as we saw in our blog "The Strategic Process", the company processes begin and end on the client. To meet the demand properly we need our business run as a selling machine, from the first contact with the customer to close a complete cycle that we define when the client makes the next purchase. Thus a complete cycle passes through the activities of pre - sales, sales and after - sales.

Convert a company in a selling machine is more than having a good number of commercial people prepared and motivated for sale. A company wishing to operate as selling machine should have especially oriented processes to meet commitments to customers. It involves all levels, departments or areas of the company. It involves every one of the people within it.

This is the great agreement that must be included in the Annual Budget. As I said in my previous post there is always a certain number of people in the company (those who do not understand the business) that only look at the Operational Sales Plan unaware that every number that is reflected in it is a consequence of an action that should satisfy the compromise acquired with customers. All members must know the business to a greater or lesser depth but ultimately all employees must understand and in turn engage with the customer.

No more alternatives to be among the best. It is therefore important for me to have a professional Annual Budget and of course it is recommended that it must be agreed between the parts. And I repeat again, agreed does not mean easy or difficult but demanding enough to meet the Corporate Strategy. But in turn, an Annual Budget must be readily complying to avoid creating uncertainty and lack of motivation from the start.

There're budgets detractors labelling them as inaccurate, inflexible, difficult to perform, time consuming, etc. Nothing is further from reality if the company determines exactly what is needed to fulfil its Corporate Strategy. Everything exceeding will give the reason to detractors.