The best way to assess whether your company’s business development efforts are strong is by evaluating the people behind them, a Polygon analysis has found.
A report from Gartner, the industry’s analytics company, found that more than a third of companies surveyed had an understaffed team that didn’t provide the company with a competitive advantage.
“The key thing that is important to remember is that it’s a matter of perception, not hard numbers,” said Gartener VP of Product Strategy and Strategy Analyst David Smith.
“What you’re looking at is the number of people, the size of the team, and what you’re hearing from your stakeholders is that the team is a good fit for the company.
You need to get those three things in order for a company to meet its business development needs.”
Gartners analysis found that a majority of companies had an employee with no business development experience, with the remaining four percent having at least one.
Most companies didn’t have at least two employees with no experience.
The report also found that only 40 percent of companies said their business development teams were highly effective, while only 36 percent said their teams were.
While the majority of businesses were successful at creating and sustaining a strong team, the report found that they were often hampered by understaffing.
Nearly two-thirds of companies experienced an increase in their number of employees by one person.
Nearly one-third of companies saw an increase of more than one person, and over half said their number had gone up by more than four people.
More than one-fifth of companies reported a drop in the number in their staff.
The majority of organizations also said they experienced an uptick in turnover, as the number on the team declined by one or two people.
“A lot of businesses are trying to grow in ways that don’t have an established pipeline of product releases and other business development initiatives,” said Smith.
“[They’re] trying to create a new company that can be a very good fit, but it’s also a lot of people.
It’s just not a very stable environment.”
The report found a clear correlation between employees’ turnover rate and the company’s financial performance.
Garters research found that the average turnover rate for companies with at least 100 employees was 30 percent, compared to 29 percent for companies without more than 100 employees.
The rate also rose by nearly two-and-a-half percentage points for companies that had more than five employees, to 32 percent, and fell by nearly one-and–a-third points for smaller companies.
GARTERS found that companies that have fewer than 10 employees were less likely to have turnover rates of more one-than-one percent.
The study also found more than two-fifths of companies with one employee reported no improvement in their revenue and profits, while more than half had a drop of at least three-and/or-more percent.
“You can’t just be confident that a company has an effective business development process if you don’t know what you’ve got,” said Paul A. Zucman, senior VP of product management for Gartens product development.
“This report is very important to me because I know a lot more than I want to know.
I want my company to be competitive in a lot the same way that I do.”