Full Service Incentive Compensation Design |
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The first step is to fit the sales imperatives to the company's strategy. Consistent focus on a few key metrics helps with decisions ranging from when to hire a new sales person to the right channel for servicing a specific class of customers. The right suite of overall sales effectiveness measures provides a yardstick to evaluate any change intended to improve sales results. We work with clients to:
| Sales leaders ask: What is Sales expected to deliver? How is that different from what we've been doing? How will we know we're making progress? How should the relationship between revenue and compensation change over time? Once we take care of this year's improvements, what will be our next focus area? Should we be doing anything to prepare for that now? |
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Well-design sales compensation plans start with a clear definition of the selling role. We work with clients to first document clearly the key characteristics of the selling roles that matter for compensation design. We then design a pay structure for sales, including for each role:
With the pay structure as a foundation, we identify the right measures for each role, and craft the most motivating payout mechanics for each measure. There are a number of "right answers" for any plan design, and many more potential "wrong answers." Aggregate cost modeling and incumbent-level modeling of expected payout results helps with tuning the plans, validating the design, and getting solid buy-in from both first-level sales managers and Finance.
| Sales leaders ask: Are we paying our sales people enough? ...too much? Are our best people earning the most money? How much should my top performers earn? Is the "comp" in comp plan short for "complicated"? How can we make it simpler, and still be sure it's fair? What will this new plan do to my best contributors? ...my performance challenges? Is our plan fiscally responsible? What will it cost us under a number of possible performance scenarios? |
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At its best, compensation is a tool to communicate top priorities and motivate over-goal performance. We work with clients to:
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Sales leaders ask: We need to have everyone in Sales understand something about all the selling roles and the way they are compensated, without dragging everyone through all the comp plans. How do we do that? Our people don't really understand their own compensation plans, and neither do their managers. How do we fix that? We get sales reports and paychecks, but it's hard to see the connection. How do we make the reports more useful, even motivating? |
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Our Full- Service offering is a turn-key service covering all aspects of sales compensation. It is geared for companies
We work with clients in the context of all their sales management and business initiatives to:
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Most incentive plans in use today, and most of the ones we recommend, depend on well-set goals. The right goal setting process depends on a number of factors (e.g., the type of market data available, the stability of the market served, and the nature of the sales process). We work with customers to:
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Sales leaders ask: What is the right level of productivity for our sales people? How does that differ by geographic assignment, customer segment, tenure, account type, etc.? How do I set goals that help create better actual results? Should I ever adjust goals? When? How?
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