Aligning sales performance to your compensation plans


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This complimentary seminar brought together some of Toronto’s top experts in each of these essential fields. Listen to David Johston talk about how you can improve and retain top performers through there compensation plans. (

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Aligning sales performance to your compensation plans

  1. 1. SALES SOLUTIONS GROUP PRESENTATION “Aligning Sales Performance to Your Compensation Plans” December 1, 2010
  2. 2. Agenda <ul><li>What are the “Top 5” sales compensation challenges that will impact your business? </li></ul><ul><li>How do you align sales compensation to your business goals and sales strategies? </li></ul><ul><li>What are the “Right” measures of sales performance? </li></ul>
  3. 3. “ Top 5” Sales Compensation challenges <ul><li>Changes in sales strategy. </li></ul><ul><li>Complexity. </li></ul><ul><li>Target setting </li></ul><ul><li>Tracking/Performance Management </li></ul><ul><li>Transparency & Communication. </li></ul>
  4. 4. “ Top 5” Sales Compensation Issues <ul><li>Changes in sales strategy. </li></ul><ul><ul><li>Last 2 years 80%+ have changed sales and go-to-market strategy. </li></ul></ul><ul><ul><li>Has sales compensation changed? Reinforcing old paradigms? </li></ul></ul><ul><ul><li>Sales compensation must: </li></ul></ul><ul><ul><ul><li>Communication what you value and what you want to pay them to deliver. </li></ul></ul></ul><ul><ul><ul><li>Tell them where to focus their time and effort! </li></ul></ul></ul>
  5. 5. “ Top 5” Sales Compensation Issues <ul><li>Complexity </li></ul><ul><li>Many plans have too many measures (Should have 3 – 4 maximum). </li></ul><ul><li>Plan wording is open to interpretation and misconception about sales process and how incentives will be calculated. </li></ul><ul><li>Plans have too many qualifiers and conditions with inconsistent management/mixed messages. </li></ul>
  6. 6. “ Top 5” Sales Compensation Issues <ul><li>Target setting </li></ul><ul><li>Volatility and restructuring makes it difficult to set accurate and achievable targets. </li></ul><ul><li>Rapidly changing markets makes it next to impossible to consistently set annual targets. </li></ul><ul><li>Organizations don’t communicate the process and don’t get buy-in, leaving them “hanging out to dry”. </li></ul><ul><li>Try shorter timeframes with a review at mid-year. </li></ul>
  7. 7. “ Top 5” Sales Compensation challenges <ul><li>Tracking/Performance Management </li></ul><ul><li>Multiple data feeds and remote sales force. </li></ul><ul><li>Manual manipulation of the data . </li></ul><ul><li>Errors and time wasted (management & support) </li></ul><ul><li>Technology to manage. </li></ul>
  8. 8. “ Top 5” Sales Compensation challenges <ul><li>Transparency & Communication </li></ul><ul><li>Management “tool” </li></ul><ul><li>Shadow accounting vs. selling. </li></ul><ul><li>Resolving Disputes. </li></ul><ul><li>An average plan well communicated always does better than a great one that is not. </li></ul>
  9. 9. Alignment to Business Goals and Sales Strategy Sales Compensation is NOT an Input but an Output
  10. 10. What are the “Right” Measures? <ul><li>The devil is in the data. </li></ul><ul><li>KPI’s – Quantitative and Qualitative (procurement dilemma) </li></ul><ul><li>“ Line-of-sight” is critical. </li></ul><ul><li>You get what you INSPECT not what you EXPECT . </li></ul><ul><li>Focus on margin/profitability if you can measure and track it. </li></ul>
  11. 11. What are the “Right” Measures? <ul><li>Criteria for use as a measure: </li></ul><ul><li>Accuracy. </li></ul><ul><li>Consistency. </li></ul><ul><li>Contributory. </li></ul><ul><li>Measureable. </li></ul>
  12. 12. What are the “Right” Measures? <ul><li>To differentiate ….. Be different: </li></ul><ul><li>“ If you are not the lead pig, The scenery never changes” </li></ul>
  13. 13. What to do for 2011? <ul><li>RESEARCH & ANALYSIS is the Starting Point. </li></ul><ul><li>All STAKEHOLDERS perspectives. </li></ul><ul><li>Do you have the SYSTEMS to measure. </li></ul><ul><li>TARGET Setting process </li></ul><ul><li>COMMUNICATE ……. COMMUNICATE……. COMMUNICATE !!!!! </li></ul>
  14. 14. Thank You Questions – Comments??