Sales Compensation Management

Even a brilliant strategy does not translate into success unless your salespeople productively and efficiently work to execute it. Sales force behaviors are the link between strategy formulation and execution, and sales compensation management is an essential process for motivating salespeople to execute your strategy.

Sales compensation management (SCM) solutions include processes related to:

• Incentive compensation - including plan design, modeling, and rollout, as well as implementation and on-going management of sales compensation plans
• Rewards and recognition - including the design of non-cash reward and recognition programs and the implementation, management, and fulfillment of these programs
• Total compensation - including the planning and management of total compensation across all salespeople, including salary, sales commissions, benefits, and other cash and non-cash components

Common problems associated with poor sales compensation management include:

• strategic misalignment because of an inability to design, model, implement, and manage the sales compensation plans desired
• misunderstood plans and inaccurate results that fail to drive needed sales force behaviors
• lack of information that fails to provide visibility into the performance of people and the effectiveness of plans
• an inability to quickly adapt to change that limits enhancements to strategy and associated plan modifications
• lack of process consistency, which exacerbates all of the other problems