How to Redesign Sales Territories
When to Redesign Territories
Most sales teams create territories once and never redesign them. They set territories at the beginning of the year and stick with them, even when markets change, teams grow, or performance suffers.
But territories need to be redesigned sometimes. Markets change. Teams grow. Performance suffers. Territories become unbalanced. Redesign becomes necessary.
Here's how to redesign sales territories — when to do it, how to do it, and how to minimize disruption.
When to Redesign Territories
Here are situations that require territory redesign:
Market Changes
What it is: Significant changes in your market — growth, decline, new competitors, market shifts.
Why it matters: Market changes affect territory potential and balance.
When to redesign: When market changes are significant and affect territory balance.
What to do: Assess market changes. Redesign territories to reflect new market reality.
Team Growth
What it is: Sales team grows — new reps join, team expands, capacity increases.
Why it matters: Team growth requires territory redistribution.
When to redesign: When team growth is significant and requires territory changes.
What to do: Assess new capacity. Redesign territories to distribute accounts. Assign new territories.
Performance Issues
What it is: Significant performance differences between territories — some territories consistently outperform, others underperform.
Why it matters: Performance issues indicate territory imbalances.
When to redesign: When performance differences are significant and persistent.
What to do: Analyze performance. Identify imbalances. Redesign to balance performance.
Territory Imbalances
What it is: Territories become unbalanced — some reps overwhelmed, others underutilized.
Why it matters: Imbalances create unfairness and hurt performance.
When to redesign: When imbalances are significant and affect performance or satisfaction.
What to do: Assess balance. Identify imbalances. Redesign to balance territories.
Rep Changes
What it is: Reps leave, join, or change roles — requires territory reassignment.
Why it matters: Rep changes require territory redistribution.
When to redesign: When rep changes are significant and require territory changes.
What to do: Assess impact. Redesign territories. Reassign accounts.
How to Redesign Territories
Here's how to redesign territories:
Step 1: Assess Current State
What to do:
- Analyze current territory performance
- Assess territory balance
- Identify problems and issues
- Document current state
Why it matters: You can't redesign effectively without understanding current state.
How to do it: Review performance data. Analyze balance metrics. Identify issues. Document findings.
Step 2: Define Objectives
What to do:
- Define redesign objectives
- Set goals for new territories
- Prioritize objectives
- Document objectives
Why it matters: Clear objectives guide redesign.
How to do it: Define what you want to achieve. Set goals. Prioritize. Document.
Step 3: Analyze Market and Accounts
What to do:
- Analyze current market state
- Evaluate account potential
- Assess account distribution
- Understand market trends
Why it matters: Market and account analysis informs redesign.
How to do it: Review market data. Analyze account potential. Assess distribution. Understand trends.
Step 4: Design New Territories
What to do:
- Design new territory structure
- Balance territories for potential, count, and workload
- Assign accounts to territories
- Create territory maps
Why it matters: New territory design achieves objectives.
How to do it: Design structure. Balance territories. Assign accounts. Create maps.
Step 5: Plan Transition
What to do:
- Plan transition from old to new territories
- Identify changes needed
- Plan communication
- Set transition timeline
Why it matters: Transition planning minimizes disruption.
How to do it: Plan changes. Identify impacts. Plan communication. Set timeline.
Step 6: Communicate Changes
What to do:
- Communicate redesign to team
- Explain rationale and objectives
- Address concerns and questions
- Set expectations
Why it matters: Clear communication prevents resistance and confusion.
How to do it: Announce redesign. Explain why. Address concerns. Set expectations.
Step 7: Implement Changes
What to do:
- Implement new territory assignments
- Update CRM and systems
- Communicate assignments
- Monitor transition
Why it matters: Implementation executes redesign.
How to do it: Update assignments. Update systems. Communicate. Monitor.
Step 8: Monitor and Adjust
What to do:
- Monitor new territory performance
- Assess balance and satisfaction
- Adjust as needed
- Optimize continuously
Why it matters: Monitoring ensures redesign works.
How to do it: Track performance. Assess balance. Adjust. Optimize.
Minimizing Disruption
Here's how to minimize disruption during redesign:
Plan Carefully
What to do: Plan redesign carefully. Consider all impacts. Plan transition.
Why it matters: Careful planning minimizes disruption.
How to do it: Plan thoroughly. Consider impacts. Plan transition.
Communicate Early
What to do: Communicate redesign early. Explain rationale. Address concerns.
Why it matters: Early communication reduces anxiety and resistance.
How to do it: Announce early. Explain why. Address concerns.
Phase Implementation
What to do: Phase implementation if possible. Implement gradually. Test changes.
Why it matters: Phased implementation reduces disruption.
How to do it: Break into phases. Implement gradually. Test changes.
Provide Support
What to do: Provide support during transition. Offer training. Help reps adjust.
Why it matters: Support helps reps adjust and succeed.
How to do it: Offer training. Provide resources. Help reps adjust.
Common Redesign Mistakes
Here are common mistakes to avoid:
Redesigning Too Frequently
The mistake: Redesigning territories too frequently, creating instability.
The fix: Redesign only when necessary. Allow stability between redesigns.
Not Communicating
The mistake: Not communicating redesign rationale and changes.
The fix: Communicate early and clearly. Explain rationale. Address concerns.
Ignoring Rep Input
The mistake: Not involving reps in redesign process.
The fix: Involve reps. Get input. Consider feedback.
Not Planning Transition
The mistake: Not planning transition from old to new territories.
The fix: Plan transition carefully. Minimize disruption.
The Bottom Line
Redesigning sales territories requires:
- Assess current state — Analyze performance, balance, and issues
- Define objectives — Set goals for new territories
- Analyze market — Understand market and account state
- Design new territories — Create balanced, optimized territories
- Plan transition — Minimize disruption
- Communicate changes — Explain rationale and address concerns
- Implement changes — Execute redesign
- Monitor and adjust — Ensure redesign works
When to redesign: Market changes, team growth, performance issues, territory imbalances, rep changes.
How to minimize disruption: Plan carefully, communicate early, phase implementation, provide support.
Common mistakes: Redesigning too frequently, not communicating, ignoring rep input, not planning transition.
The sales teams that succeed aren't the ones that never redesign territories. They're the ones that redesign when necessary — assessing current state, defining objectives, and implementing carefully.
That's how you redesign sales territories — by assessing when redesign is needed, planning carefully, and implementing systematically.