Is Your Sales Operation Costing You Shareholder Value?

Three common sales failures

In large-scale or capital-intensive industries, Return on Average Capital Employed (ROACE) is a widely used measure of efficiency and of how well a company is turning capital into shareholder value. Given this operational and financial focus, it might seem unlikely that the sales function would have much opportunity to influence the outcome of this measure. But as a consistent ROACE is important to investors looking for long-term, annuity-like returns, all opportunities to positively influence the ROACE ratio are worth considering.

This white paper explores how ROACE is often negatively influenced by the sales team and how improving their capability (in terms of sales excellence and performance) can help improve this metric. We explore this from the perspective of three key areas of failure that can emerge as a direct consequence of selling in a large-scale or capital-intensive industry and offer suggestions for how these weaknesses can be avoided.