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!
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?
Over the course of many years in this field, I can say without reservation that data quality is one of the cornerstones to a solid sales compensation process. Due to the nature of this beast, it is often a hidden aspect to the process and often rears its head only when the quality of your data is poor. Think of it, if you are one of those fortunate enough to have a relatively high quality pool of performance data, when was the last time someone appreciated that fact and all the work that went into creating that high quality information? The alternative is those who struggle with issues related to data quality and quite frankly there are few things that can hamstring your sales performance improvement efforts more than poor data quality. When this occurs, the two steps forward, three steps back grind overtakes your process affecting everyone from sales reps to analysts, and all the senior managers to whom these producers report.
Much has been written about the role of Non-Cash incentives as an employee motivational tool. This approach provides tangible rewards that don't directly involve cash as an incentive for achievements that align with corporate goals.
When you have 5 minutes (6:39 to be exact), Ryan Johnson's (WorldatWork) interview with Dave Chicelli (Alexander Group) is a great investment of your time. While the 2012 interview is a bit dated , there are several theme's Dave and Ryan pull from the 2012 Sales Comp Trends survey data which are timeless. As a big fan of data based decision making, the fact that the insights are gleaned from data trends observed over a 10 year time span makes this all the more impressive.
While reading a science article recently focused on the way Blue Muscles attach themselves to rocks and how this can be applied to earthquake proofing buildings, I was stuck by how this related to sales compensation. The core insight gleaned form the research was the need to combine rigidity with flexibility in order to withstand the different types of forces encountered in nature, including earthquakes. Being from New England myself, I can attest to how hard it is to separate a blue muscle from a rock – next to impossible.
A recent production from World@Work that touches on several very interesting concepts related to using the sales compensation plan to improve sales performance.
Today is LEON day (NOEL spelled backwards), the half way mark to the holiday season for many and is also the half way mark to the close of many sales teams plan year.
SPIF(F)’s - Sales Performance Incentive Funds - are a tremendous tool to motivate and reward certain kinds of sales performance. Aberdeen Group noted in some recent research that the majority of best in class companies credit some of their sales performance success to special sales incentives such as SPIF’s.
I thought I'd share a few good sales spreadsheet horror stories for you to share at your next campfire
© 2013 NetCommissions™ - All rights reserved.