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| 2012 articles 2011 articles 2010 articles 2009 articles 2008 articles |
| December 17, 2009 |
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Five Tips for Profiting from the Ability to Manage Unexpected Changes in the Sales Compensation Plan Process
Changes in sales compensation plans are to be expected. Yet, at many organizations, when it comes time to implement these changes, the organization faces significant challenges for a variety of reasons, all of which lead to chaos, delays, and worse. While automating your sales compensation management processes can help eliminate these challenges, new ones can surface. Here are five tips to help ensure you profit from using automation to manage change—expected and otherwise.
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The Trouble with Quotas
You’ve developed your business plan for the new fiscal year and put the new sales compensation plan in place. You’re almost ready to go, except for one thing: setting quotas for the sales organization. Quotas are an often-overlooked critical link between the sales force and business objectives. As a result, over 30 percent of companies don’t have their sales quotas ready in the first month of their fiscal year, almost half end up adjusting quotas during the year, and many reps carry an unrealistic load. Why does this happen?
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| December 3, 2009 |
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Five Tips for Ensuring Alignment of Sales Comp Plans
To effectively align the behaviors of your sales force with your corporate strategy, the strategy needs to be embodied in your sales compensation plans. Yet most companies find themselves incapable of achieving this strategic alignment because they are unable to design, implement, or manage the sales compensation plans that they desire.
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Is the Annual Sales Compensation Plan Passé?
A volatile economy makes the probability of achieving an annual business plan highly unpredictable and common business practices are called into question. The continued use of an annual sales compensation plan is no exception, and, thus, in many companies the plan designer is asked: Is the annual sales compensation plan passé?
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| November 19, 2009 |
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Five Tips for Improving Management Visibility into Sales Force Performance and Compensation Plan Effectiveness
One of the critical linkages in using sales compensation plans to drive sales results is the need to understand the performance of salespeople and the effectiveness of the plans so that the strategy, the plans, and the people can be changed as needed. Being able to do this requires that executives and managers have frequent, timely, accurate, meaningful, and actionable sales performance and sales compensation information.
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Reducing the Sense of Entitlement: Pay for Performance for 2010 and Beyond
Many companies that took drastic actions, like freezing pay, to deal with the economic slump, are now wondering when the good old days will return. The truth is that most organizations would be well served if the answer was "never."
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| November 5, 2009 |
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5 Tips for Using Modeling to Eliminate the Unexpected from Your Sales Compensation Plans
To understand how your sales compensation plan will work before it’s rolled out to the sales force, it is important to model the plan under a range of different scenarios. Failure to model, validate, and analyze the impact of new plans or plan changes before they are rolled out to the sales force exposes companies to unknown budget risks, unanticipated commission costs, and excessive mid-cycle plan modifications.
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Selling More through Better Territory Management
Sales organizations are being asked to increase efficiency, which often means selling more with fewer resources. A carefully crafted territory management plan can help maximize performance.
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| October 22, 2009 |
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6 Tips for Ensuring Error-Free Sales Comp Results
To drive desired behaviors, a sales organization must have confidence in the accuracy of its sales compensation results, payments, and reports. Yet one of the most damaging reasons behind failures to optimally manage sales compensation plans is inaccurate results.
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Sales Incentive Compensation Best Practices
Growth Solutions, LLC, an independent sales management consulting firm, has recently completed a benchmark survey on sales compensation practices. The benchmarking effort was focused around sales compensation administration within sales organizations of 20 – 500 payees and consisted of approximately 30 confidential, in-depth interviews with participating companies.
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| October 8, 2009 |
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Role Play
A successful sales organization understands that sales reps with different talents and responsibilities require unique motivations. With this in mind, it only stands to reason that forward-thinking sales organizations support multiple position-based compensation plans.
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Sales Best Practices Study
Take part in Miller Heiman’s 2010 Sales Best Practices Study now and be among the first to receive the Executive Summary in Q1 2010. Everyone who completes the survey by Friday, October 16 will receive an early preview of some of the preliminary results of this year’s study.
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| September 24, 2009 |
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Take Charge
Developing an effective sales compensation plan is only half the battle. Effective controls are needed to ensure a plan works properly.
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Properly Documenting a Sales Compensation Plan
Properly documenting a sales compensation plan establishes a helpful reference guide by clearly defining all of the plan’s provisions. Just as important, the plan document will serve to protect the interests of the company by providing clear guidance for any potential dispute that may arise regarding incentive plan administration.
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| September 10, 2009 |
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Streamline Your Sales Force
A muddled team and a fractured organizational chart are surefire triggers for your next sales slump. Avoid both with job role clarity.
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10 Simple Rules for Improving Your Sales Compensation Plan
To develop your sales compensation plan correctly, understand the core issues and look to a set of time-tested sales comp rules that will guide your way.
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| August 27, 2009 |
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One for All: Maximizing Sales Force Effectiveness Post-Merger
To maximize sales force effectiveness, organizations need a compensation system that allows them to constantly monitor results and rapidly respond to changes.
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Sales Incentive Plans: Creating a Timeline for Success
Revisiting your sales strategy and incentive plans regularly is imperative, and keeping a realistic timeline for redesign is key.
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| August 13, 2009 |
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Road Test: Modeling Sales Comp Plans Prevents Surprises
Proactive modeling of sales compensation plans provides a clear view into sales costs and prevents surprises down the road.
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| July 30, 2009 |
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A Closer Look: Limited Modeling Capabilities
Including proactive modeling of sales compensation plans as part of the plan design process can help drive the right sales force behaviors and deliver the expected results.
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Growth Strategies for Sales Leaders in Complex Sales Environments
Find out how top sales leaders meet the challenge of increasing sales with decreasing resources in Miller Heiman's 2009 Sales Best Practices study.
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| July 16, 2009 |
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Staying Focused
By having the proper systems and procedures in place, organizations can potentially avoid costly pitfalls and ensure that the sales force is properly motivated with goals and objectives that are aligned with the organization's overall strategy.
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Sales Success Depends on Compensation Process Automation
Companies that simplify their sales compensation processes-rather than their sales compensation plans-are outperforming their competition, according to Aberdeen Research.
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| July 2, 2009 |
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Equal Footing
Include human resources in the sales compensation plan design process to ensure that organizational culture and strategy are in sync with financial objectives. Too often, sales performance plans are generated in a kind of vacuum, with little or no input from key stakeholders outside of the finance department. Despite its critical role in communicating a company's strategic values and philosophies through the organization, HR often is left out of the sales performance equation.
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Change Management Challenges
Tips for Obtaining Buy-In to that New Sales Compensation Plan
Just because an annual sales compensation plan change is the norm doesn't mean that achieving a successful rollout and obtaining buy-in from the sales force should be taken for granted. J. Mark Davis of Valitus Group, Inc. presents five tips for facilitating a new plan rollout.
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| June 18, 2009 |
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Finding Clarity
Far too often, managers regard sales performance as an art form best left in the hands of a select group of born sellers. Although companies may meet sales targets and increase revenue with a few high performers, a company that does not utilize sales performance audits overlooks opportunities to improve the performance of low performers and, in turn, grow revenue more quickly.
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Optimizing Your Sales Force During Economic Downturns
As the economy softens, many companies are proactively planning initiatives to fortify their competitive and financial positions. Scott Sands with Hewitt and Associates has found that leading organizations focus on the most critical talent segments. Here Mr. Sands suggests five strategies to adopt now to optimize sales force effectiveness when the economy recovers.
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| June 4, 2009 |
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Preventative Maintenance
Periodically checking a sales compensation plan's key vital signs can help organizations identify and eliminate problems before they become a threat. Much like an annual physical with your doctor, analyzing your plan early and often can be the key to preventing serious ill-effects down the road.
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Measuring Results: Key Performance Indicators Can Help Set Better Goals for Sales Reps
Sales managers often rush to judgment if sales reps aren't meeting their quotas, and automatically assume that they either don't have the skills or the understanding to perform. Kendra Lee, President of KLA Group, takes a look at how key performance indicators should be used to better assess performance.
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| May 21, 2009 |
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A Closer Look: Errors in Results
Sales compensation plans that consistently produce inaccurate results, payments, or reports pose a series of problems for companies, including lost productivity, reduced profitability, and, potentially the inability to retain top-performing salespeople.
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Compensation Innovations in an Economic Downturn
Employers considering how to position their business in the economic downturn should revisit what has and has not been effective in the past and consider that solutions that worked in the last economic recession may not fare as well in this unprecedented environment. More importantly, a rigorous and longer-term ROI-based approach to decision-making may reveal some unexpected alternatives.
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| May 7, 2009 |
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Great Expectations
Compensating Millennials in sales roles requires clearly defining and communicating the plan.
With 76 million in the United States today, Millennials are making their mark on businesses. This age group, which has values and expectations quite different from the generations that preceded them, assumes the business world and the old rules of rewards and compensation will change to suit them. And in many cases, they have.
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Territorial Instincts
The process of designing sales territories—an early and critical strategic step for any organization in reaching its sales goals—is most often a process without sufficient thought and without a solid grounding in data and analytics.
At most companies, territories develop over time based on such things as historical precedent, internal politics, or simply a need to create temporary sales coverage. At best, these methods are nonsystematic and unaligned with the company's overall goals.
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| April 21 , 2009 |
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Calming Quota Chaos
Successful quota allocation methodologies demand flexibility. Business conditions will always change, and quotas must be responsive to those conditions. Choosing the right model for your organization-and communicating changes to your sales force-is the key to quota success.
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Engaging Employees Through Periods of Layoffs
Economic volatility is taking its toll on many organizations. Recent Watson Wyatt research shows that 39 percent of a sample of U.S. companies have already undertaken some employee layoffs; an additional 23 percent expect to do so during the next 12 months. While perhaps necessary from a business perspective, cutting the workforce reduces the total value of a firm's human capital.
Findings of the 2008/2009 Watson Wyatt WorkUSA survey suggest seven lessons for managing the human side of the restructuring process.
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| March 31 , 2009 |
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A Closer Look: Increasing Plan Understanding
Money is a powerful motivator. The promise of a financial return for improved performance often can transform a stagnant sales team into a tireless sales force. But in order for a sales compensation plan to be effective, employees must be intricately familiar with how it works.
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What Are Some Best Practices for Compensating Sales-Related Positions
Donya Rose with The Cygnal Group tackles a question that challenges many companies. What are the best practices for compensating sales-related positions such as Account Managers, Business Development Managers, Technical Sales Support Specialists and Sales Engineers?
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| March 17 , 2009 |
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Serving Up Quotas
Change is good. But as creatures of habit, people--particularly those in sales--tend to greet change with varying degrees of enthusiasm. When a sales organization undergoes a change in incentives or quotas, ensuring the continued motivation of the sales team requires constant communication in several forms. As the critical link in the change management process, communication begins before the plan is implemented with disclosing the rationale and methodology used to set the quotas.
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Armchair Quarterbacking in Sales Organizations
The pursuit for growth in an uncertain economy has many sales leaders looking for a competitive edge. Michael T. Spellecy of Maritz discusses a method to help maximize sales performance which begins by validating the brand with customers and employees and concludes by examining several best practices for hiring, training, coaching and motivating sales people.
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| March 3, 2009 |
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Indirect Alignment
Measuring, driving, and rewarding effective sales behaviors is challenging—particularly when you're selling to intermediaries instead of end users. Arming your sales reps with strategic objectives and motivational metrics can help.
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Sales Plan Design for Solution Sales
How do you go about incentivizing solution sales? Donya Rose of The Cygnal Group looks at the hallmarks of the solution sale and lays out the characteristics of a typical sales plan design for this role.
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| February 17, 2009 |
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A Closer Look: The State of Long-Term Incentives
As uncertainty about the economy looms like a cloud, a company's success or failure may depend on its ability to retain talented salespeople, the kind who can generate revenue despite the prevailing economic climate.
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Growing Revenue in Uncertain Times
Sometimes it's hard to see competitive opportunities in the disappointing headlines. But past economic downturns have shown that firms can thrive and grow in a turbulent environment. Watson Wyatt shares some specific tactics that companies can focus on to gain short-term benefits in a down economy.
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| February 3, 2009 |
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Best Practices: Seven Steps to Prepare for Downsizing
Layoffs are an unfortunate—but often inevitable—aspect of business. These seven steps can lessen their impact and keep sales force morale high.
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| January 20, 2009 |
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Roundtable: The Global Economic Crisis and Sales Compensation
In today's uncertain economy, companies are looking to control costs, often resorting to drastic reductions. The sales organization, like all departments, is not immune to these cuts.
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Maritz on Driving Sales Force Effectiveness
Vendors and their customers have specific goals for their businesses as well as expectations for each other. Unfortunately, those don't always align. Michael T. Spellecy of Maritz shares insights and strategies designed to better integrate those goals and create lasting partnerships.
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| January 6, 2009 |
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Expert Guidance: A Year in Review
As part of its ongoing Executive Education Series which focuses on the core problems related to ineffective management of sales compensation plans, Synygy hosted free, online discussions about sales performance management and sales force effectiveness that featured case studies, live polling, and viewer-submitted questions. Get the gist of it all here.
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What is the Right Commission Rate?
How do you know what the right commission rate is for your industry and area of the country? According to Donya Rose, Managing Principal with The Cygnal Group, the answer depends on the nature of the selling role, the level of maturity of the business and cost structure of the company.
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| About Synygy |
| Synygy provides consulting, technology, and outsourcing solutions to improve sales and channel performance, sales operations efficiency, sales force effectiveness, and sales analytics. Synygy’s comprehensive approach to incentive compensation management and sales performance management includes consulting services for assessing sales initiatives and transforming the design of data, workflow, compensation, reporting, analytics, and other sales processes; technology enablement services; and outsourcing services for managing sales operations, analyzing sales data, and continuously improving sales performance. With over two decades of experience and extensive operations in North America, Europe, and Asia, Synygy has delivered measurable outcomes for many of the world’s largest companies. www.synygy.com |
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