Strategic Misalignment

Strategic misalignment occurs when the design of sales compensation plans is limited by the systems, processes, and people needed to implement and manage them. These constraints prevent the organization from designing the plans it wants and causes a misalignment between the strategy and the plans.

One constraint that is particularly problematic for most organizations is an inability to thoroughly model how a plan is expected to work—before it is rolled out. The negative effects of failing to accurately predict payments under a range of scenarios can be severe, both in terms of over- and underpayments.

When strategic misalignment occurs, salespeople are motivated and rewarded for selling the wrong things for the wrong price to the wrong customers (and other bad behaviors that are out of alignment with the strategy), resulting in lower revenue and higher costs.

Applying its 21 years of experience developing flexible, adaptable, and efficient sales compensation management processes, Synygy helps companies create strategic alignment by eliminating plan implementation and management constraints so that sales compensation plans can be designed and executed that fully reflect the organization’s business strategy and objectives.