territory-optimizer

name	territory-optimizer
description	Analyzes territory design for account distribution balance, quota fairness, overlap detection, and capacity planning. Recommends realignment to maximize revenue potential and reduce rep burden.
allowed-tools	Read, Write, WebFetch
effort	high

When to activate

Run monthly, after new hires, after quota changes, or on-demand when territory gaps or unfair allocations suspected. Requires account list with assigned rep, territory, revenue potential, and current quota.

When NOT to use

Not for individual rep performance review—use quota-tracker. Not for one-off account assignments; use for systematic territory design. Not during forecast lock (final week of month).

Territory Analysis Framework

1. Account Distribution Fairness

Map all assigned accounts to reps. Score on:

• Account Count: Should be balanced (±15% variance). Red flag if one rep has 40% of accounts.
• Account Size Distribution: Mix of enterprise, mid-market, commercial. Red flag: all top 10 accounts assigned to 1 rep.
• Account Potential: Territory revenue potential should be balanced to quota.

2. Quota Fairness

Analyze quota targets against territory potential:

• Formula: Territory revenue potential / Assigned quota
• Healthy range: 0.9x to 1.1x (territory potential = quota)
• Red flag: >1.3x (territory over-quota'd) or <0.7x (territory under-quota'd)

3. Coverage Gaps

Identify uncovered accounts or geographic gaps:

• Accounts without assigned rep
• Industries underserved
• Geographic regions with low penetration
• Potential expansion segments

4. Revenue Concentration Risk

Assess if territory revenue is too concentrated:

• Healthy: Top 5 accounts = <40% of territory revenue
• At risk: Top 5 accounts = 40–60% of territory revenue
• Critical: Top 5 accounts = >60% of territory revenue

5. New Business vs. Expansion Pipeline

Analyze pipeline mix by territory:

• Healthy: 50/50 new business to expansion ratio
• Track: Is territory weighted to new logos or expand-heavy?

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Territory Optimization Report

# Territory Optimization Analysis — [Date]

**Scope:** [Sales team / region / segment]  

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## Territory Balance Scorecard

| Territory | Assigned Quota | Revenue Potential | Balance | Account Count | Top 5 Concentration | Status |
|-----------|---------------|-------------------|---------|----------------|-------------------|--------|
| [Rep] | $[X] | $[X] | [%] | [X] | [%] | [Color] |

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## Fairness Assessment

- **Quota Variance:** [X]% (target <15%)
- **Revenue Potential Variance:** [X]% (target <15%)
- **Account Count Variance:** [X]% (target <20%)

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## Coverage Gaps

- Uncovered accounts: [List]
- Industries under-penetrated: [List]
- Geographic gaps: [List]
- Expansion opportunity: [List]

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## Concentration Risk

| Territory | Top 5 Accounts $ | % of Territory Revenue | Risk Level |
|-----------|-----------------|----------------------|-----------|
| [Rep] | $[X] | [%] | [Green/Yellow/Red] |

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## Rebalancing Recommendations

1. [Specific account move] — From: [Rep]. To: [Rep]. Rationale: [Reason]. Expected impact: [Impact].
2. [Account move] — From: [Rep]. To: [Rep]. Rationale. Expected impact.

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## Implementation Timeline

- Week 1: Announce rebalancing to reps
- Week 2: Transition conversations + knowledge transfer
- Week 3: Account transitions live; pipeline adjustments

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Example

Territory Optimization Analysis — 2026-06-12

Scope: Enterprise Sales Team (4 reps)

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Territory Balance Scorecard

Territory	Assigned Quota	Revenue Potential	Balance	Account Count	Top 5 Concentration	Status
Sarah K	300K	340K	113%	24	38%	Green
Mike T	300K	210K	70%	18	62%	Red
David M	300K	295K	98%	26	41%	Green
Jennifer L	300K	355K	118%	28	35%	Green

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Fairness Assessment

• Quota Variance: 21% (target <15%) — PROBLEM: Mike's territory severely under-resourced.
• Revenue Potential Variance: 40% (target <15%) — CRITICAL: Mike's territory has 70% of average potential; Jennifer's has 118%.
• Account Count Variance: 18% (target <20%) — Borderline; Mike has fewest accounts.

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Coverage Gaps

Uncovered Accounts: 7 high-potential accounts (>$200K ARR) unassigned across regions.

Industries Under-Penetrated:

• Manufacturing (2 accounts needed)
• Healthcare (3 accounts — only 1 rep touching)

Geographic Gaps: West Coast secondary markets (Denver, Phoenix, Portland) — no dedicated coverage.

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Concentration Risk

Territory	Top 5 Accounts $	% of Territory Revenue	Risk Level
Sarah K	$128K	38%	Green
Mike T	$130K	62%	Red
David M	$121K	41%	Green
Jennifer L	$124K	35%	Green

Mike's concentration is critical: Losing top 2 accounts = −85% of territory attainment. High churn risk.

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Rebalancing Recommendations

1. Move $250K potential accounts from Mike to Jennifer

   • Transfer Acme Industries + Vertex Systems to Jennifer L
   • Rationale: Jennifer's territory is 118% of potential and she's outperforming. Mike's territory is 70% — critical under-resourcing.
   • Expected impact: Mike +$50K potential (raise to 87%), Jennifer +$250K (no quota change, more capacity).

2. Hire new rep for West Coast expansion segment

   • Assign: Seattle, Portland, Denver, Arizona markets
   • Rationale: Geographic coverage gap = missed 15+ accounts/year.
   • Expected impact: +$500K ARR pipeline within 18 months.

3. Consolidate Healthcare vertical under David M

   • Transfer 2 healthcare accounts from Jennifer to David
   • Rationale: David has industry expertise; consolidation enables depth over breadth.
   • Expected impact: Higher win rate + deeper expansion in healthcare vertical.

4. Assign 3 uncovered high-potential accounts

   • TechFlow ($250K): Jennifer (growth focus)
   • CloudInc ($180K): Sarah (existing relationships)
   • DataCorp ($200K): New hire (West Coast)

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Implementation Timeline

• Week of June 17: Announce rebalancing to team; 1:1 conversations with affected reps.
• Week of June 24: Transition conversations between reps + account handoff.
• Week of July 1: Accounts live in new territories; pipeline ownership transferred. Jennifer + David adjusted forecasts.
• By July 15: New hire ramped; West Coast territory live.

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