Sales Performance Improvement Plan: A Step-by-Step Guide

How to Diagnose Problems, Set Clear Goals, and Drive Measurable Results

 

When sales performance falls short of expectations, the instinct is often to increase activity, add headcount, or launch new training initiatives.

Yet without a structured diagnostic process and clear improvement plan, these interventions rarely address root causes, and results remain frustratingly inconsistent.

A sales performance improvement plan (SPIP) provides the framework for identifying specific performance gaps, implementing targeted interventions, and measuring progress systematically.

This guide walks through the complete process of creating and executing an effective improvement plan that delivers measurable results.

For a broader understanding of measuring and managing sales effectiveness, see our comprehensive guide on sales performance.

What Is a Sales Performance Improvement Plan?

A sales performance improvement plan is a structured document that:

• Identifies specific performance gaps based on objective data
• Sets clear, measurable improvement targets
• Defines concrete actions, responsibilities, and timelines
• Establishes tracking mechanisms and review cadences
• Creates accountability for both the sales representative and manager

 

Crucially, an effective SPIP focuses on behaviours and activities that drive outcomes, not just the outcomes themselves.

Telling a rep to “increase win rate by 10%” without addressing the qualification discipline, discovery effectiveness, or stakeholder engagement that determines win rate creates frustration without improvement.

 

When to Use a Sales Performance Improvement Plan

SPIPs are appropriate in several scenarios:

Individual Rep Underperformance

When a sales representative consistently misses quota despite adequate territory and opportunity, a structured improvement plan helps diagnose whether the issue is skills, behaviours, motivation, or external factors.

The SPIP creates a clear path forward whilst documenting the support provided.

Team-Wide Performance Gaps

If multiple representatives struggle with the same challenge – poor qualification, weak discovery, lengthy sales cycles, or low close rates, a team-level improvement plan addresses systemic issues rather than treating symptoms individually.

This often reveals process breakdowns, methodology gaps, or market dynamics requiring a coordinated response.

Post-Training Implementation

After sales methodology training or skill development workshops, an improvement plan ensures concepts translate into daily practice.

Without structured application and reinforcement, training rarely changes behaviour; the SPIP creates the bridge between learning and doing.

New Rep Onboarding

For new hires, a 90-day ramp-up plan functions as a proactive performance improvement framework, setting clear milestones for skill development, pipeline building, and quota achievement.

This prevents performance problems from developing whilst accelerating time-to-productivity.

 

The 7-Step Framework for Creating an Effective Sales Performance Improvement Plan

 

Step 1: Conduct a Comprehensive Performance Diagnostic

Before prescribing solutions, you must understand precisely where performance is breaking down. This requires examining multiple data sources:

Quantitative Metrics Analysis

Review the past 90-180 days of performance data across key indicators:

• Quota attainment (actual vs. target)
• Pipeline coverage (ratio of pipeline value to quota)
• Win rate overall and by stage
• Average deal size
• Sales cycle length
• Activity levels (meetings, calls, emails)
• Pipeline velocity (opportunities created and advanced)

 

Compare these metrics not just to quota but to team averages and top performer benchmarks.

A rep at 70% of quota but performing at team average suggests a territory or market problem; a rep at 70% with metrics well below team average indicates an execution gap.

Qualitative Activity Review

Numbers reveal symptoms; activities reveal causes. Examine:

• Call recordings or meeting notes: Is discovery thorough? Are the qualification criteria being assessed? Is value articulation clear and customer-specific?
• CRM data quality: Are opportunities properly qualified? Are the next steps defined? Are close dates realistic?
• Deal reviews: When opportunities are lost, what patterns emerge? Budget? No decision? Competition? Timing?
• Stakeholder engagement: How many contacts are involved in deals? Are economic buyers engaged early?

 

Skills Assessment

Evaluate competency across critical sales capabilities:

• Prospecting and pipeline generation
• Discovery and needs analysis
• Qualification using your sales methodology (MEDDIC, BANT, etc.)
• Value articulation and business case development
• Objection handling
• Stakeholder mapping and mobilisation
• Negotiation and closing

 

Diagnostic Output

A clear statement of the specific performance gap.

Not “quota attainment is low” but “win rate at proposal stage is 23% vs. team average of 41%, driven by weak value quantification and limited economic buyer engagement.”

 

Step 2: Identify Root Causes, Not Just Symptoms

Low quota attainment is a symptom. The root cause might be:

• Pursuing poorly qualified opportunities (low win rate)
• Insufficient pipeline generation (low activity or ineffective prospecting)
• Deals stalling at specific stages (process breakdown)
• Losing to “no decision” (insufficient value articulation or champion development)
• Lengthy sales cycles consume capacity (poor deal qualification or urgency creation)

 

Use the Five Whys technique to drill down.

If win rate is low, ask why. If the answer is “losing to competition,” ask why.

If the answer is “price objections,” ask why.

Continue until you reach a behavioural root cause that can be addressed through coaching, process change, or skill development.

Example Root Cause Analysis:

• Symptom: Only 60% of quota achieved
• Surface cause: Win rate of 18% vs. team average 28%
• Deeper cause: Losing 45% of deals to “no decision”
• Root cause: Discovery meetings focus on features/functionality rather than business problems and quantified impact, resulting in prospects who like the solution but can’t justify the investment to internal stakeholders.

 

Step 3: Set Specific, Measurable Improvement Goals

Effective improvement goals follow the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) but must focus on leading indicators, the behaviours and activities that drive outcomes, not just lagging results.

Poor Goal Examples:

• “Improve win rate” (not specific or measurable)
• “Achieve quota” (focuses on outcome without addressing how)
• “Make more calls” (activity without quality or purpose)

 

Strong Goal Examples:

• “Increase win rate from qualified opportunities from 18% to 25% within 90 days by improving discovery effectiveness—specifically, completing quantified impact analysis in 80%+ of discovery meetings.”
• “Reduce ‘no decision’ losses from 45% to 25% by engaging economic buyers before solution presentation in 100% of opportunities over $50K.”
• “Improve pipeline coverage from 2.1x to 3.5x within 60 days through consistent prospecting activity—minimum 10 qualified discovery meetings per week.”

 

Notice how strong goals connect the outcome target (win rate improvement) with the specific behavioural change (completing quantified impact analysis) that will drive that outcome.

This gives both rep and manager clarity on what success looks like.

 

Step 4: Define Concrete Actions and Development Activities

Goals without actions are aspirations.

The heart of your SPIP is the specific development plan that will close the identified skill or behaviour gap.

Action Plan Components:

1. Skill Development Activities

What training, self-study, or practice will build missing capabilities?

• Review discovery framework training materials (SPIN Selling module)
• Shadow two top performers on discovery calls
• Complete discovery call role-play scenarios with manager
• Watch recorded discovery calls from top performers, noting question patterns and conversation structure

 

2. Process Changes

What workflow or systematic changes will reinforce new behaviours?

• Use the discovery preparation template before every first meeting
• Complete the quantified impact worksheet during or immediately after discovery calls
• No opportunities advance to the proposal stage without a documented, quantified business case

 

3. Coaching Cadence

How will the manager provide ongoing support and accountability?

• Weekly 1:1 deal reviews focusing specifically on discovery effectiveness
• Manager attends one discovery call per week (observer only) with debrief after
• Bi-weekly role-play sessions on handling common discovery scenarios

 

4. Resources and Support

What tools, templates, or additional resources will enable success?

• Discovery call preparation template
• Quantified impact calculator spreadsheet
• Industry-specific discovery question bank
• Access to a top performer for a monthly mentoring conversation

 

Step 5: Establish Clear Milestones and Timeline

Performance improvement rarely happens overnight.

Break the overall goal into progressive milestones that demonstrate momentum and create accountability points.

 

Example 90-Day Milestone Structure:

Timeline	Activity Milestones	Performance Indicators
Week 1-2	Complete training, shadow calls, initial role-plays	Baseline understanding of framework established
Week 3-6	Apply framework to all new discovery calls, weekly debrief with manager	60% of discovery calls include quantified impact analysis
Week 7-10	Consistent application, mid-point review and course correction	80% of calls include impact analysis; early win rate improvement visible
Week 11-12	Final assessment, success celebration or plan adjustment	Win rate improved from 18% to 24%+ (target 25%)

 

Progressive milestones serve multiple purposes: they create early wins that build confidence, they provide checkpoint opportunities to adjust the plan if something isn’t working, and they prevent the rep from feeling overwhelmed by a 90-day transformation.

 

Step 6: Define Measurement and Tracking Mechanisms

You can’t improve what you don’t measure.

Establish clear metrics and tracking processes for both leading indicators (behaviours) and lagging indicators (results).

 

Leading Indicators (Behaviours and Activities)

These predict future performance and can be influenced immediately:

• Number of discovery calls conducted
• Percentage of discovery calls where the quantified impact worksheet was completed
• Percentage of opportunities with a documented business case before proposal
• Manager observation scores on discovery call quality

 

Lagging Indicators (Results)

These confirm whether behaviour changes are producing desired outcomes:

• Win rate from qualified opportunities
• Percentage of losses to “no decision”
• Average deal size
• Quota attainment

 

Tracking Cadence:

• Weekly: Review leading indicators to ensure behaviours are being executed
• Bi-weekly: Assess progress against milestones, course-correct if needed
• Monthly: Review lagging indicators to confirm behaviour changes are producing results

 

Step 7: Document the Plan and Establish Accountability

 

The improvement plan should be documented formally and signed by both the sales representative and manager.

This isn’t punitive; it’s ensuring shared understanding and commitment.

 

Essential Plan Components:

• Executive Summary: Brief description of the performance gap and improvement goal
• Current State Assessment: Specific metrics demonstrating the gap
• Root Cause Analysis: Why the gap exists
• Improvement Goals: SMART targets for both behaviours and outcomes
• Action Plan: Specific activities, resources, and support
• Milestones: Progressive checkpoints with success criteria
• Measurement Framework: How progress will be tracked
• Review Schedule: When formal check-ins will occur
• Consequences: What happens if targets are/aren’t met
• Signatures: Rep and manager acknowledgement

 

Common Mistakes That Undermine Sales Performance Improvement Plans

 

Mistake 1: Focusing Only on Outcomes, Not Behaviours

 

“Achieve 100% of quota” is an outcome, not a development plan.

Without addressing the specific behaviours that will drive that outcome, prospecting discipline, qualification rigour, and discovery effectiveness, you’ve simply restated the expectation without providing a path forward.

Solution: Every outcome goal must be paired with the specific behaviour changes that will achieve it.

 

Mistake 2: Creating Unrealistic Timelines

Expecting dramatic performance improvement in 30 days sets everyone up for failure.

Skill development takes time; behaviour change takes longer; and results lag behind behaviour changes by weeks or months given sales cycle length.

Solution: Use 90-day plans as standard, with progressive milestones that demonstrate momentum even if final results haven’t materialised.

 

Mistake 3: Insufficient Manager Support and Coaching

Handing a rep a written plan and saying “go do it” rarely works.

Performance improvement requires active manager involvement; observation, feedback, role-play, and accountability.

Learn more about effective sales performance management practices.

Solution: Build manager coaching time into the plan explicitly. If the manager can’t commit 2-3 hours per week to support the rep, the plan is set up to fail.

 

Mistake 4: Too Many Improvement Areas Simultaneously

Trying to improve prospecting, discovery, qualification, and closing simultaneously overwhelms the rep and dilutes focus.

Excellence in one area beats mediocrity in four.

Solution: Identify the one or two highest-leverage improvement areas and focus exclusively on those for the first 90 days.

 

Mistake 5: No Consequences for Non-Compliance

If there are no consequences for failing to execute the agreed-upon activities, the plan becomes optional.

The rep learns that commitments aren’t serious.

Solution: Be clear upfront: “If you execute this plan fully and results don’t improve, we’ll adjust the approach or acknowledge external factors.

But if the agreed activities aren’t completed consistently, we’ll need to have a different conversation about fit.”

 

Measuring Success: What Good Looks Like

A successful SPIP produces three types of outcomes:

1. Behaviour Change

The targeted behaviours are being executed consistently.

If the plan focused on discovery effectiveness, discovery calls now follow the framework, include quantified impact analysis, and receive higher quality scores from managers.

2. Performance Improvement

The metrics targeted for improvement show measurable progress.

Win rates increase, sales cycles shorten, pipeline coverage improves, or quota attainment rises.

Importantly, improvement doesn’t have to reach the stretch goal to be successful.

Moving from 60% to 85% of quota while demonstrating consistent behaviour change represents real progress, even if the ultimate 100% target hasn’t been achieved yet.

3. Sustainable Practice

The new behaviours become a habit, not dependent on constant manager oversight.

The rep has internalised the approach and continues applying it after the formal SPIP period ends.

 

Team-Level Performance Improvement Plans

When multiple representatives struggle with the same issue, an individual-by-individual approach wastes time and misses the systemic problem.

A team-level SPIP addresses shared challenges through coordinated intervention.

 

When to Use Team-Level Plans:

• More than 50% of the team struggles with the same skill gap
• Overall team metrics (win rate, cycle length, conversion by stage) fall below the benchmark
• Post-training implementation requires coordinated reinforcement
• Process or methodology changes need team adoption

 

Team Plan Modifications:

The framework remains the same (diagnostic → root cause → goals → actions → milestones → measurement → accountability), but implementation differs:

• Group training sessions replace individual skill development
• Peer learning and best practice sharing become key activities
• Team metrics supplement individual tracking
• Group accountability sessions (weekly team reviews) provide visibility and collective commitment

 

The Performance Diagnostic: Where Every Plan Should Start

Before creating any performance improvement plan, you need clear visibility into where performance is breaking down.

Many organisations lack the systematic diagnostic capability to pinpoint whether problems stem from qualification, discovery, value articulation, stakeholder engagement, or other factors.

Working with experienced sales coaches can help accelerate this diagnostic process.

The SalesSnapshot™ Report provides exactly this diagnostic clarity.

Sample Sales Performance Improvement Plan Template

The following template provides a starting point for documenting your performance improvement plan:

Sales Representative:	[Name]
Manager:	[Name]
Plan Period:	[Start Date] to [End Date] (90 days)
Current Performance:	[Key metrics: quota attainment, win rate, pipeline coverage, etc.]
Root Cause Analysis:	[Specific behaviours or skills causing performance gap]
Improvement Goals:	[SMART goals for both behaviours and outcomes]
Development Activities:	[Specific training, coaching, practice activities with timeline]
Manager Support:	[Coaching cadence, observation schedule, resources provided]
Measurement Metrics:	[Leading and lagging indicators to track]
Review Schedule:	[Weekly, bi-weekly, monthly check-ins]
Success Criteria:	[What constitutes successful plan completion]

 

About SalesPerformance Group

SalesPerformance Group brings enterprise-grade sales methodologies to growth firms and corporate divisions.

Our SalesPerformance System™ integrates proven sales frameworks into a modern, actionable methodology that embeds into daily workflows and drives measurable results.