The document discusses common mistakes in sales incentive systems, particularly the misalignment between sales and finance departments. It highlights the importance of unified goals and effective communication to improve compensation plans and reduce administrative burdens. The authors recommend leveraging technology and analytics to create a mutually beneficial system for both teams.

1. Overcoming 5 common mistakes
with sales incentive systems

2. Not ensuring that
Sales and Finance
are aligned
COMMON MISTAKE
#

3. Sales and Finance have different plans and
goals for the sales compensation system.
Sales Finance
We need to
increase revenue!
Simple and clear plans
are more effective in
the field.
Admin tasks take
away from time
with clients.
We need more
analytics.
Decrease cycle times!
Reduce errors!
We need to improve
our margins.
Sophisticated and
complex plans drive
profitable behavior.
We need to reduce IT
and admin costs.
There should be
more self-service
in Sales.
More regulation!
Faster information!

4. Address the natural tensions between
the Sales and Finance teams.
Tip
Leaders in each
department must openly
discuss their
challenges, needs and
environments.
Find a compromise
that communicates
goals, expectations
and timeframes.
Use Finance’s
experience to help in
analytics, reporting
and compliance.

5. Work with both Sales and Finance
teams to design a plan and system
that work overall.
Tip
Finance
Sales
compensation
Plan and
system
Sales
Unify the Sales and Finance departments

6. Invest in technology. It’s a win–win
situation for both Finance and
Sales teams.
Tip
of respondents using an
incentive compensation
system say that it has
“substantially contributed
to an effective sales
incentive system.”
CFO Research Study

7. Download the white paper Conversations
on incentive compensation: The changing
role of finance in pay for performance.
 Reasons for the tension
between Sales and Finance
 Ideas for bridging the gap
between Sales and Finance
 Benefits you can expect
as your sales compensation
strategy successfully evolves

8. Discover additional IBM sales
performance management resources.
http://ibm.co/SPM