Territory potential

Current revenue in the territory, plus the gap at norm across its accounts, plus the universe accounts not yet buying valued at the segment norm and discounted by a stated realisation factor. Quota is set as a share of it, and territory potentials sum to the company's.

DefinitionCurrent revenue in the territory, plus the gap at norm across its accounts, plus the universe accounts not yet buying valued at the segment norm and discounted by a stated realisation factor. Quota is set as a share of it, and territory potentials sum to the company's.

Made of accounts

A market-size figure names no account. Potential from the ledger and the universe file is a list a rep can visit.

Same revenue, different potential

Two territories at $4m can differ threefold in potential, and equal quotas would be unfair to one and unchallenging to the other.

How it is computed

Current revenue in the territory, plus the gap at norm across its existing accounts, plus universe accounts not yet sold to at a realisation factor.

Example

A territory sells $4.8 million, has $1.1 million of gap at existing accounts and $3.0 million of universe value at a 15 percent factor: potential of $6.35 million.

Where it goes wrong

Potential taken as last year's sales. Territories are then sized by history and the under-worked ones stay that way.

Articles that use this term

Territory, capacity and quota planning

Five checks before you sign off a new territory map

Five checks a sales leader runs on a proposed territory design before it goes live, all from the ledger, the customer master and the universe file: potential balance across territories, load balance in weighted accounts, account continuity with the current owners, travel or cluster sanity where it applies, and the quota identity that the new map's quotas sum to the company's. Each with the test, the tolerance and the failure it catches.

16 Sept 20263 min read Territory, capacity and quota planning

Quota setting from potential: three methods compared, and the identity each must pass

Three ways to set territory quotas, top-down allocation by last year's revenue, bottom-up from rep commitments, and share of potential from the ledger and the norms, what each rewards and punishes, a worked comparison on the same four territories, the identity that the quotas sum to the company target under every method, and why the third method is the only one a rep can check.

16 Sept 20263 min read Territory, capacity and quota planning

Territory potential from your own ledger: how to value a territory before you assign it

How to compute the potential of a sales territory from data the company holds, current revenue plus the gap at norm across the accounts in it, plus the universe accounts not yet buying valued at the segment norm, why that beats a market-size estimate for assigning quota, the identity that keeps territory potentials summing to the company's, and a worked comparison of two territories with the same revenue and very different potential.

16 Sept 20263 min read Territory, capacity and quota planning · Pharma

Territory realignment by access-weighted potential: putting the reps where the prescriptions can be written

How a pharmaceutical commercial team redraws territories from access-weighted potential rather than raw prescriber counts: each account's category volume times its access status, summed per candidate territory, the balance across territories, the accounts moved and the continuity of rep relationships, the calls released from blocked accounts, and the identity that the territories' weighted potential sums to the region's.

16 Sept 20262 min read Board and management reporting

The shape of attainment: what the distribution across reps says about the plan

How to read quota attainment as a distribution rather than an average: the share of reps between 80 and 120 percent, the tails, the spread by tenure and by territory potential, and what four common shapes mean, a plan that was too easy, one that was too hard, one that was uneven across territories, and one that describes a team with a coverage problem rather than a quota problem.

16 Sept 20263 min read Board and management reporting · Pharma

Commercial KPIs for pharma sales teams: ten measures that matter, each with its formula and the export it comes from

The ten commercial KPIs a pharmaceutical sales organisation should run on, each with its formula, the export it comes from and what it tells you: reach and frequency among accounts that can prescribe, calls on blocked accounts, access-weighted territory potential, pull-through after a formulary win, call plan attainment by plan version, sample to prescription relationship, target list currency, new prescriber activation, share within accessible accounts, and off-plan call rate. Also the three measures most teams miss, the figures to drop, the identities, and who owns what.

17 Sept 20264 min read