This is the second in a two-part series. Read Part I here.
While the group of folks charged with designing a sales compensation plan can put the “fun” in dysfunction, the group can also work beautifully together. After all, they share a common goal — to create a comp plan than harnesses all that power behind the sales force, and make everyone some money.
Consider your current mix of people and the following key points when creating the sales compensation design team.
1. Listen to the sales organization. As participants in the plan, this group can offer insight into how well the plan works, as well as any challenges. Interview sales managers, survey front line sales reps and be receptive to feedback throughout the year.
2. Include a cross-section of leadership in the planning and design process. Leaders from the major functions involved with sales and sales compensation should be
included during when making major decisions. Involving executives from sales leadership, financial leadership, administration leadership and human resources leadership ensures each organization has a voice at the table.
3. Follow a design guide and establish a decision making procedure. A design guide outlines the process – soup to nuts – of evaluating and creating a sales compensation plan that is aligned to the goals of the business. A guide keeps people on track and focused on the strategic goals of the plan, and prevents individual functions from getting sidetracked by a separate agenda. Make sure the guide outlines how decisions will be made within the group to prevent disagreements from becoming stalemates.
4. Gauge – and then respect – your CEO’s level of interest in the design process. While some CEOs like to be involved as the compensation plan is designed, others just like to hear the final number.
We’d love to hear who is involved in your organization’s sales comp design team and how it works — or doesn’t.
To learn more, visit SalesGlobe or email email@example.com.