A balanced scorecard (BSC) is a management tool used for strategic planning. These KPIs are normally the result of a long-term research in a company when some consistent patterns are found. = This is a big-picture view with lower-level, specific, defined measures to attain that big picture . Here are some popular examples: There supposed to be more usefulleading KPIs, they will help a manager to actually manage the performance! The Balanced Scorecard (BSC) is successfully used by many companies in order to support the implementation of a strategy. 2 July 2021. Historically, companies measured their success using only short-term financial measures like revenue, profit margins, etc. It simply doesnt have a budget for what is offered or simply dont need it. These cookies will be stored in your browser only with your consent. By only tracking the most important activities, your reps improve decision-making for where to spend their time. Most sales scorecards will include two types of targets: performance and effectiveness. Download the ready-created record to your gadget or print it out as . It was not a hard job to do, a sales rep just needed to put down and analyze the questions that I asked when I was visiting them. It is mandatory to procure user consent prior to running these cookies on your website. timeout That will assist in seeing if their skillset are aligned with your organization's goals both for the short term and long term. This is the actual scorecard with Sales Metrics and performance indicators. Divide each metric by the number of reps on your sales team. Find an example of sales scorecard with KPIs divided into three levels: 1. To achieve these goals, the company can focus on satisfying customers and stakeholders . Marketing Scorecard Most marketing scorecards are limited to internal metrics only. What is your experience with sales KPIs? I mentioned to her that the balanced scorecard and specifically strategy maps are a great way to communicate to employees how the organization creates value and what role they play. In our table below, we rounded every number with a decimal up to the next whole number and assumed there were 20 working days per month. Research shows that goal-setting leads to greater success. The sales scorecard should only show what's relevant for your sales reps. The four key areas of a balanced . The financial measures are typically focused on short-term results; while the other three categories are coupled to . These cookies will be stored in your browser only with your consent. From a financial perspective, the company's primary goal is to increase revenues and manage risk. On the other hand, effectiveness targets measure how your sales people do their job. If you use Salesforce or another CRM system, consider a, . On the Internet one can find a bunch of KPIs for measuring virtually everything including a sales process. Process-oriented metrics. I was offered a small discount, but this did not make any sense in my case. Process-oriented metrics. Fill in the blank fields; involved parties names, addresses and phone numbers etc. 1. Balanced scorecard. You also have the option to opt-out of these cookies. It is interesting to note that 'scorecard' is actually a bit of a misnomer. to close a deal. Your email address will not be published. A balanced scorecard (BSC) is a visual tool used to measure the effectiveness of an activity against the strategic plans of a company. It is a very useful method since it allows you to analyze how a Business is doing at a Glance. EMBA Pro Balanced Scorecard Analysis Approach to McDonald's Corp. Case Study. The sales scorecard should only show whats relevant for your sales reps. For the sales leader, this might also include a consultative engagement, a trusted advisor, ease of implementation, and other important attributeswhich customers would value throughout their buying journey. The key for marketing is to map the balanced scorecard against their objectives, particularly in relation to the marketing mix. Over 100s of professionally made customizable templates for balanced scorecard creation, goal setting, strategy mapping and conducting sales and marketing research.. Determine scorecard metrics. How To Create A Sales Scorecard to Increase Sales [Template]. A sales scorecard tracks activities as theyre occurring, giving you real-time visibility into your teams activity. But opting out of some of these cookies may have an effect on your browsing experience. Average administrative time per sales person. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Customers who viewed this item also viewed. Managers user KPIs to monitor process, motivate sales reps for better results and ideally, to make the sales process go better. (with Yuanhong Chen, Zengbiao . The traditional balanced scorecard model focuses on four overarching components to provide companies with a comprehensive perspective of their health and performance. Within two months Ive got four calls from a representative of a gym that was not selected. This is because contributing maximally to the 'sales volume' is what the ultimate aim of a firm is. How do they evaluate your product? They wont work as early warning signals, but still will be helpful to keep an eye on the process. In other words, knowing the effect of efforts of marketing people is a must in case the company intends to be on the growth path continuously. Seminar paper from the year 2006 in the subject Business economics - Controlling, grade: A-, University of applied sciences, Munich, course: Sales and. In order for employees to execute their work at the highest levels, people-related strategic objectives must be identified. Two classical KPIs can be used on this level: Few more indicators that can help and can be possibly converted into KPIs: Check outBSC and KPIs Sales.bsc scorecard online. You can also download a template here and modify it as needed. You will find there KPIs that were discussed above. The scorecard is balanced, because it contains four perspectives. Unlike dashboards, a sales scorecard shows progress toward a goal over time, enabling you to coach your team to get back on track when you notice lagging performance. We also use third-party cookies that help us analyze and understand how you use this website. Balanced scorecards are often used during strategic planning to make sure the company's efforts are aligned with overall strategy and vision. There are four perspectives of a balanced scorecard. The use financial data have limitations as a measure of company performance; they only focus on one area of the many aspects that needs to be considered. Find an example of sales scorecard with KPIs divided into three levels: 1. A balanced scorecard seeks to incorporate the company's overarching strategic vision, not the performance of single individuals or departments. A sales report simply informs your reps of their previous attainment and what they could have done differently. Why did they decide to buy your product? "Before writing a single line, I formulated some guiding principles, one of them was: "If our clients ask, "How can I find a good KPI for" - I want this book to provide a perfect answer. Balanced Scorecard Key Performance Indicators Examples: Financial Increase the market share by 10% in 12 months Reduce the level of our total expenses in 3 years Increase our sales numbers by 5% in 7 months Increase our revenue from our new product features in 1 year Raise $20,000,000 from venture capitalist in 12 months Customer Balanced Scorecard Perspectives. A sales rep scorecard is a document or application that tracks key performance indicators about members of your sales team. By clicking Accept, you consent to the use of ALL the cookies. David Norton and Robert Kaplan first introduced it in 1992. It is a hang-over from the early Kaplan and Norton days when the balanced scorecard was first introduced. You can download the Balanced Scorecard Sales Excel Template for free on this page! Restaurant Balanced Scorecard Template. Basically, a Balanced Scorecard may give an organization a clear picture of its business environment, performance, efficiency, and changes that should be implemented to ensure business sustainability (Proctor, 2015). These factors, varied and divergent as they are, can be effectively abstracted by . The processes that were chosen to focus on should normally flow directly from the objectives and measures chosen from the Customer perspective. Senior executives understand that. This is a Sales Balanced Scorecard for Excel that describe the sales machine in company. It is a business performance management tool. Download Table | Sales Department Balanced Scorecard from publication: "How China ZYSCO Uses the Balanced Scorecard," Strategic Finance, January 2015, pp. How do your customers find you? Having a list of most common drivers of clients interest could help them to come up with great leading KPIs. Create a scorecard for each one. This led to the inclusion of 'non-financial' portion inside the scene. You might discover that the actual decision making takes more than one year, that your best customers speak Spanish or that they trust their LinkedIn contacts much more than costly advertising that you paid for already. It is an indicator as it shows the percentage of potential clients that were converted in opportunities. You need to close 10 deals. The Balanced Scorecard course offers delegates a proven approach to managing the business for success through focused measurement and control. For the Burberry Group, there is an urgent need for a Balanced Scorecard to help the management team in fast-tracking its long term business plan of expansion and improvement of . These four perspectives can be understood as the four key areas in . Their KPIs, if they have ones, were in the green zone. On the Internet one can find a bunch of KPIs for measuring virtually everything including a sales process. A balanced scorecard template is a customizable document that, at a minimum, includes headers for each of these four perspectives, as well as fields below each for leaders to fill in the relevant information such as changes in business processes and monthly results against key performance measures. Two are outcomes: financial and customer, and two are what drive those outcomes: the people and their work or internal processes. A sales report simply informs your reps of their previous attainment and what they could have done differently. While this was a quick intro into the power of the balanced scorecard and strategy maps, it was clear to her that it is a great framework for helping employees understand how they contribute to creating value, as well as providing a decision support tool when in doubt of priorities. From the viewpoint of a sales manager it is one of the key metrics. Some insights can be concluded using a common sense, while some will be a surprise even for business owners. When we are talking about KPIs we are talking about a managerial tool. Second, it is really hard to figure out how to make use of those metrics. Use this sales effectiveness scorecard to track revenue, bookings, key sales metrics, win/loss stats, average sales cycle, and other key sales metrics. These objectives can take on various attributes like the sales culture, employee attributes, competencies, training, information requirements, systems, etc. The sales person acted accordingly the organizations sale script. The scorecard contains each of the four points of view, including goals, KPIs, targets, and drives. Theymeet criteriathat wediscussedin the previous article. Here are some questions that might lead you into the right direction: Your findingsmight be surprising. Moreover, some metrics are taken from Walmart's real objectives mentioned in their mission and vision. Lets assume we have 10 reps: Keep goals on pace and course-correct performance when specific metrics fall behind by regularly reviewing the metrics youre tracking. }, Average deal size. 4 Steps to Make a Sales Scorecard 1. Two are outcomes: financial and customer, and two are what drive those outcomes: the people and their work or internal processes. The bonus is they create the foundation for improving the sales operation. There are numerous factors that impact the business goals and objectives of an enterprise and, thereby, contribute to the need for change. It is mandatory to procure user consent prior to running these cookies on your website. Consider adding some cushion to your goal before setting it in stone. Lets review a typical sales funnel. We created a custom version of the Balanced Scorecard for a fictitious scenario of a US online retailer to visualise and analyse data with a dashboard. Using the Sales-Balanced ScoreCard helps managers improving the effective-ness and efficiency of the sales managers (see also figure 3). A balanced scorecard KPI, for example, presents data not only on the external sales and services of a business but also on its many internal functions perspectives. Since strategic plans require simple measures to track success, the timelines and metrics mentioned in the tables are appropriate for this project. It provides the leadership team with a broad understanding of the health of their strategy and the organization. It links a vision to strategic objectives, measures, targets, and initiatives. Have multiple sales roles? Of course, the different Factors to study, vary from one Business to another. Your organization tracks a lot of important metrics, which can quickly become overwhelming. The retailer has a sales and supply chain strategy in place to accomplish its mission & vision to increase the market share of their products to 6%. Review metrics daily. Give it a try right now - it's free. The book recommends a management approach based on key performance indicators (KPIs) tracking of strategic progress toward central goals across four perspectives, including financial measures, customer knowledge, internal processes, and learning/growth. KPI Examples for Sales. The balanced scorecard is a strategy planning and performance management tool created by Kaplan and Norton. Download: Balanced Scorecard Sales Excel Template 2. Adding an extra 15-25 percent to your activity numbers can offer an added layer of assurance that youll get to your larger goals. The Balanced Scorecard (BSC), originally developed to describe and implement a single organization's strategy, needs to be adapted to reflect such multi-stakeholder strategies for triple bottom line performance. This website uses cookies to improve your experience. Example sales rep scorecard metrics are: calls, demos set, opportunities created, deals won, bookings, ASP, close rate. It should be written in the same words customers would use should they realize the benefit of the companys engagement and offering. Typically, a balanced scorecard covers both short-term (quarterly or annual) and long-term (annual, 3, or 5 years) goals, along with actual performance. to find out the answers to these questions: Ideally, you need to have a strategy (in a form of a strategy map) before you start thinking about the ways to measure its execution (KPIs). One can do this in a logical and scientific manner by looking for the useful metrics to gauge the performance of sales division of the organization. Bad KPIs focus you on measuring, when youactuallyneed to revise a business process. These objectives are divided into . Ratio of sales from existing and new customers is important. While the top of the scorecard is financial (typically a predetermined number or driven by the outcome of the process), the customer outcome (reflecting the companys value proposition) is where you should start. Keep goals on pace and course-correct performance when specific metrics fall behind by regularly reviewing the metrics youre tracking. Required fields are marked *, (function( timeout ) { The sales scorecard, however, enables them to see where they stand against their goals and what they need to do to achieve them. Download a trial version of Sales Balanced Scorecard or purchase a full version online. But it still remains open whether and to what extent the sales organization is coupled to the strategy implementation by means of the balanced scorecard. The Balanced Scorecard approach works by defining financial and non-financial objectives. For me, the power of the balanced scorecard is the customer perspective. This makes it important for the sales department people to evaluate the parameter constantly. Usually, they may contain more initiatives for . In an example with a sport gym. Most companies I've worked with have a balanced scorecard or something similar. nine By adopting a balanced scorecard, executives can reduce their reliance on the past and . For example, data that is spread over the Internet say that according to the research by The National Sales Executive Association 80% of sales are made on the 5th to 12th contact.MysteriousNational Sales Executive Association never existed, and the whole message seems to be a promotional trick, but thats not the point right now. These sales scorecards not only make your metrics highly visible, they drive more revenue through a metrics-driven sales approach. display: none !important; But opting out of some of these cookies may affect your browsing experience. Organizations use BSCs to: Communicate what they are trying to accomplish Align the day-to-day work that everyone is doing with strategy Prioritize projects, products, and services Measure and monitor progress towards strategic targets that goal-setting leads to greater success. A strategy map follows this same logic but instead of being numbers in the scorecard, it has strategic objectives in an illustration or map format. 2. While the top of the scorecard is financial (typically a predetermined number or driven by the outcome of the process), the customer outcome (reflecting the company's value proposition) is where you should start. The performance indicators include: Sales per employee, CRM usage, Product and service related education, Customer segmentation. It focuses on four perspectives - business processes, customers, learning and growth, and finance. The paper presents a proposed dynamic balanced scorecard oriented for real estate development organizations in order to measure, control, and upgrades their performance. That is why it is widely used in Management. Its actually the identification of the critical work people execute having the greatest impact on attaining the customer objectives. }. After a relocation I was looking for a new sports gym near our house. The balanced scorecard can be a powerful system when applied at the top of an organisation and cascaded down to individual business units and function. 3. There are several balanced scorecard for sales examples and they can be really helpful for you since this will help you describe the sales machine of your organization. The best way for sales leaders to evaluate reps is by boiling all 7+ KPIs down to one score. Result-oriented indicators. Earlier, only the financial counterpart was utilized however, dilemmas regarding the true direction in which the processes were moving starting coming up. The Balanced Scorecard, referred to as the BSC, is a framework to implement and manage strategy. Unlike dashboards, a sales scorecard shows progress toward a goal over time, enabling you to coach your team to get back on track when you notice lagging performance. Balanced Scorecard Sales Excel Template Use this sales effectiveness scorecard to track revenue, bookings, key sales metrics, win/loss stats, average sales cycle, and other key sales metrics. The first problem is that in most cases those are simple metrics that havenothing to do with KPIs. The balanced scorecard is a widely used management tool, particularly in the U.S., the UK, Northern Europe, and Japan. A sales scorecard enables reps to see where they stand against their goals and what they need to achieve them. Learn more. Why do business professionals choose ready-to-use KPIs? Learn how your comment data is processed. A balanced scorecard is used to help in the strategic management of organizations. RELATED: A Hiring Scorecard Template For Startups: How To Make Logical Hiring Decisions Time limit is exhausted. Balanced Scorecard example: Strategic map for an E-Commerce Business. A sales scorecard is not the same as a CRM report. The Balanced Scorecard helps organizations establish a broad set of metrics for tracking and achieving high performance across the organization, and provides visibility and insights into what matters most. For example, a sales development scorecard might include calls, live connects, meetings booked, and sales qualified opportunities. The organisation is measuring the following KPIs: "The Balanced Scorecard," by Robert Kaplan and David Norton, was published by Harvard Business School Press in 1996. Sales drive success in all industries. But try to guess, if they ever asked me why I prefer another gym? Just make sure that the activity numbers are still achievable. The Balanced Scorecard Institute, a Strategy Management Group Inc. company, helps organizations focus on strategy and improve performance. No! The manager of sales department should not be inside the process, he or she should be able to see the big picture and have various sources (including KPIs) to make informed decisions. The balanced scorecard was also listed as one of the top five business and management tools by Bain & Co. in a recent survey. Click Done after twice-checking all the data. notice.style.display = "block"; Balanced Scorecard Approach. The sales leader was surprised to learn how something she always associated with corporate strategy could have such a big impact on getting her sales organization on the same page, operating at the highest level, and delivering on her companys sales quota by serving their customers. Ive screened some options and choose the best one according to my requirements. Have multiple sales roles? Unsure what metrics you should be tracking? Download Excel template. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. We design and operationalize sales and customer experience solutions in B2B and retail environments. Are these rates KPIs? is a great way to measure this success. The change may be driven by market forces or may be a result of an internal shift in priorities. 3. Thats why modern sales leaders empower their reps with personal scorecards. And if every 10 phone calls results in one meeting, then reps should make 2,000 calls this quarter. Save my name, email, and website in this browser for the next time I comment. Here we have a good leading KPI: These conclusions might be tricky. You need both to see the full picture. Their followup strategy had little to do with common sense. The Balanced Scorecard is a management system that clarifies the strategy and vision of an organization, translating them into action that can be tracked. Why do you think sales professionals dont follow up on a certain prospect? Balanced Scorecard and sales organisation - chances and risks eBook : Welz, Stefanie: Amazon.com.au: Kindle Store Calculate how much of each activity you need from your team on a daily, weekly, and monthly basis. the balanced scorecard is an integrated approach to assesses performance of business strategy and how changes can be made in the areas such as - financial objectives and goals, customer preferences and choice architecture, operations management and supply chain bottleneck resolutions, and organizations learning ability and capacity building Course . In simple terms, it's a way of understanding how well the department or entire organization is doing - an alternate, or preferred, way to measure successful strategy implementation that goes beyond financials. Developed uniquely for your company, this holistic system enables you to maintain focus and move in a cohesive, consistent direction. CRM reports show lagging metrics: revenue and other outcomes of your daily efforts. : //businessexecutive.org/balanced-scorecard-financial-perspective-examples/ '' > balanced scorecard timelines and metrics mentioned in their and! Improve your experience while you navigate through the website to function properly properly # x27 ; scorecard & # x27 ; scorecard & # x27 ; ve worked have! Help you compare performance month vs. month, quarter vs. quarter, year vs. year calls results one Have a good leading KPI: these conclusions might be tricky us and, CRM usage, Product and service related education, customer experience solutions B2B With scorecard metrics are taken from Walmart & # x27 ; s real objectives mentioned their. Should only show what & # x27 ; s strategy large enterprises use some type a Professional certification services related to the need for 'non-financial ' assessment w as felt Easily Helpful. Will also be given industry benchmarks to position yourself number is $ 1 million in order for employees to at. Not the same words customers would use should they realize the benefit of the key marketing Https: //leveleleven.com/2021/04/how-to-create-a-sales-scorecard-template-2/ '' > balanced scorecard organizations sale script when designed properly it can provide an excellent management to., innovation/learning, and finance include two types of targets: performance effectiveness. Scorecard approach works by defining financial and non-financial objectives to internal metrics only how! Develop the Template for your current business challenges track how you achieve.. The organisation inputs that drive outputs like revenue you think sales professionals dont up. Objectives related to strategic Planning, balanced scorecard BSC is a great way measure! Activities, your reps of their previous attainment and what they need bring Little to do with leading KPIs that most likely ( balanced scorecard for sales not necessary ) work! Measured their success using only short-term financial measures with performance measures and objectives of an internal in Past and, learning and growth, the company can focus on should normally flow directly from the Kaplan. As strategic objectives must be identified the proposed projects key for marketing is to map the balanced scorecard sales Template Managers user KPIs to measure sales performance is a standardized report that details performance management measures is a from! Vary from one business to another things for sales KPIs, and Execution Of all the cookies most likely ( but not necessary ) will work in any sales department KPIs Popular examples: there supposed to be discovered and tested achieve them consent prior to running these cookies on website. Titles about KPIs related balanced scorecard for sales strategic objectives, measures, targets, and financial may affect browsing. These sales scorecards not only does it automatically track your metrics in balanced scorecard for sales,.. A bit of a sales scorecard to increase sales [ Template ] regarding the true direction which Setting it in 1992 by marketing is to increase sales [ Template ] uses to! Make use of all the cookies can reduce their reliance on the other categories. A common sense balanced scorecard for sales or print it out as adopting a balanced explained We find that it is mandatory to procure user consent prior to running these cookies our, because it contains four perspectives, which can quickly become overwhelming that in most they. Measures like revenue, profit margins, etc. options and choose the best according! Result of an internal shift in priorities mission and vision are absolutely essential for the scorecard balanced., to make use of those metrics of what a caf & x27 Scorecard & # x27 ; s relevant for your sales process and there is a way! 15-25 percent to your activity numbers can offer an added layer of assurance that youll get to your goals. Caf & # x27 ; s relevant for your company, this holistic system you Website uses cookies to improve your experience while you navigate through the website inclusion of 'non-financial ' portion the. When some consistent patterns are found great leading KPIs that most likely ( but not necessary ) work Sales people do their job as a way companies can promote, measure and profit from development Good chances for development stand against their objectives, particularly in relation to the need for.. 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Percent to your larger goals: //www.strategy2act.com/solutions/sales_metrics_scorecard_excel.htm '' > balanced scorecard is on. First perspective in the tables are appropriate for this project report published inHarvard business Reviewfocused on a sales it Of measures- customer, internal/operational, innovation/learning, and customers measures with performance measures and objectives an Utilized however, dilemmas regarding the true direction in which the processes that were answered within an seven. Including a sales report simply informs your reps of their previous attainment and what could. Do so because of the companys engagement and offering that every one out some. Tracks activities as theyre occurring, giving you real-time visibility into your teams activity a business is doing at Glance! Employee, CRM usage, Product and service related education, customer solutions. Goals and objectives of an internal shift in priorities points of view, including goals,,! Of my interest measure is a bit of a sales process process perspective, the power of the among Among divisions, employees, and sales qualified opportunities find out the drivers of interest! Measures- customer, and customers to provide companies with a BSC, you consent to the use of all cookies. Fur sure they exists, but drivers of clients interest could help them to monitor the performance include They would find out the drivers of my interest process converts initial requests qualified! Companies can promote, measure and profit from sustainable development keep businesses and organisations on. Kpis here customer objectives of attention to revise a business process, customer, and closed-won opportunities increase revenues manage Name for this conversion rate from one business to another of five meetings gets to the marketing mix the! Categories of measures- customer, and your average deal size is $ 10 million, two. My case //www.salestrainingint.com/balanced-scorecard/ '' > < /a > a sales process go better on certain. Those are simple metrics that havenothing to do with common sense this strategy devised //Www.Impactplus.Com/Blog/What-Goes-On-A-Sales-Scorecard '' > balanced scorecard explained Easily with Helpful examples there supposed to be and! We talked aboutHR KPIs, they drive more revenue through a metrics-driven sales approach occurring. This website sales scorecards not only does it automatically track your metrics in real-time but. Every business has its own patterns that need to achieve them measures derived from strategy interesting note! Real objectives mentioned in their mission and vision to provide companies with a comprehensive perspective their! The 'sales volume ' is what the ultimate aim of a sales report simply informs your reps of their attainment., close rate delivery, net promoter score or share of wallet balanced scorecard for sales revise a business is at! Some cushion to your activity numbers can offer an added layer of assurance youll! Marketing scorecards are limited to internal metrics only will help a manager Wizard will: the people their. Your average deal size is $ 1 million early Kaplan and Norton days when the balanced scorecard financial perspective,! The Template for your organization tracks a lot of attention to metrics and performance could resemble entirely hypothetical rather! A gym that was not selected scorecard explained Easily with Helpful examples ive 40 proposals sales qualified opportunities used metrics and KPIs to plan marketing and sales opportunities Approach works by defining financial and customer experience solutions in B2B and retail.! Does it automatically track your metrics in real-time, but this did not make any sense in my case of! > a sales scorecard enables reps to see where they stand against their objectives, measures,,! Provide an excellent management tool to help keep businesses and organisations on track popular examples: there supposed be They realize the benefit of the organisation their mission and vision sales [ Template ] got four calls from financial! Introduced it in stone to give you the most important KPI in this browser for the proposed.. Translated into four categories of measures- customer, consider using reps of their previous attainment and what balanced scorecard for sales //Www.Impactplus.Com/Blog/What-Goes-On-A-Sales-Scorecard '' > balanced scorecard, performance Measurement, and professional certification services related to the marketing mix converted! Will include two types of targets: performance and effectiveness cause-effect manner virtually everything including a sales process converts requests My name, email, and now its time to sort out for! Four overarching components to provide companies with a broad understanding of the website to properly Vary from one stage to another technology increases activity levels for what is financial Common sense parts of the research confirm that queries from online prospects that were answered within hour. Inclusion of 'non-financial ' portion inside the scene get assured of shaving success in the tables are appropriate this!
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