A collague recently forwarded over an informative video from Frank Cespedes of Harvard Business School focused on Sales Compensation and his views on its place in a best in class sales process. I've summarizing the highlights related specifically to Sales Compensation below and provided a link in case you have the time to view it.
Sales Performance Management Best Practices Blog
In reading a recent article on the possibility of other life forms in outer space I was amazed at how an interesting principle they referenced could be applied to our thinking about Sales Compensation design.
The Alexander group recently conducted a survey of sales compensation trends with 135 sales organizations. The survey was conducted at the end of 2017 with expectations for 2018 an integral part of the exercise. Now at the mid-way point in 2018, an interesting question is not only how your sales organization matched up with the survey groups results & expectations, but now with six months in the books, what, if anything, has changed and why ? We take a look at several takeaways highlighted by the survey as ask a few questions to consider as you take stock of 2018 at the half way mark.
Sales Incentive Compensation plans (does not include pure commission plans) by definition require the business to specify to the sales professionals the time period over which performance will be measured. In general, longer sales cycles typically result in longer Performance Periods; shorter sales cycles typically drive shorter Performance Periods. We came across some interesting observations and key drivers of typical SaaS Sales Cycles from an industry discussion group that we thought were worthy of passing along, especially for those involved in the design and administration of SaaS Sales Compensation Plans.
I had a chance recently to sit down and listen to Jim Kelleher, CFO of LogMeIn, at a recent meeting of the Massachusetts High Technology Leadership Council as he described his experiences with SaaS Sales Compensation plans. It’s always interesting to hear what others are doing with their sales comp strategies and plans, especially from someone with such a broad level of experience and a track record of success in the SaaS world. I am happy to share with you this brief breakdown of some real world advice from Jim.