The NetCommissions Sales Performance Management Blog covers all aspects of Sales Compensation & Performance. Join your peers from companies like DHL, Monster & Novartis and join now!
An interesting article was published recently by Adamson, Dickson & Tomas of CEB in the Harvard Business Review 'Why Individuals No Longer Rule on Sales Teams' which certainly got my attention.
Sales Performance Management is a term that has evolved over the past few years to describe the process of measuring and rewarding sales performance. In the past, similar industry terminology such as Sales Incentive Compensation Management (ICM), Enterprise Incentive Management (EIM), and many other acronyms were popularized by consultants and practitioners to describe the same fundamental process of measuring and rewarding sales achievement. Practitioners using the term Sales Performance Management typically refer to three keystone elements to the process;
Simplicity is a phrase that comes up often when discussing sales compensation. Phrases like "Plans need to be simple so they can be understood clearly", "keep the measures to less than three or four so it does not get too complicated" etc. are common for a reason. It is hard to focus on and do many things well. This philosophy transcends just talk of plan design and should impact your view your whole sales comp process. Execution of the entire process has to be as important as the elegance of a well designed sales compensation plan. To execute, it helps to narrow your focus to just a few items and do them well.
Improved Sales Performance Reporting (New Years Resolution #1) is a vital element of your Sales Performance communication strategy, but it is just one element of a broader effort. When you are dealing with a sales force that is spread out geographically, the quality of forethought that you put into your communication strategy can be the difference between success and failure.
One of the core SPM 'Best practices' that managers in sales, finance and HR should always remember when accessing the state of their Sales Compensation process is the proven value of being able to reward actions that are aligned with your sales and company goals as soon as possible once they occur. (click here for a more in depth discussion)
With New years Resolution #1 aimed at improving the clarity with which you report and communicate sales performance to your sales and executive teams, it makes sense to be sure that the results and data which we are communicating are as accurate as possible.
It's that time of the year again and I have no doubt the list of things you would like to improve and accomplish in the new year is long. As a manager, one of the improvements that can have a massive payback on your companies health is to improve the way you report performance to your sales team. Feedback from surveys on Sales Performance Management by WorldatWork & OpenSymetry tells us that for at least 75% of us, there is a tremendous opportunity to improve reporting Sales Performance to your organization. Here are some quick 'take aways' from the survey.
One of the worst kept ‘dirty little secrets’ in the Sales Performance administration world is the difficulty in managing the Sales Compensation process in a timely, accurate and yet efficient manner without being derailed by some of the myriad challenges that abound. One of the biggest challenges that rear’s its ugly head is the need to wade through the morass of a large number of adjustments every payroll period while simultaneously trying to maintain error free levels of quality and hit payroll 100% of the time. Lets face it, adjustments take many forms and never seem to occur at a convenient time.
Most winners don’t start at the top, in fact there might even be some embarrassment about where they are starting from; Last years 2012 Boston Red Sox season can be generously described as a train wreck marred by poor on field performance coupled with a clubhouse culture that defines the term ‘dysfunctional’ in every way possible. How can your Sales Compensation process benefit from these lessons?
© 2014 NetCommissions™ - All rights reserved.