Best practice framework
We have developed a framework based on years of experience that has illuminated three recurring challenges companies face.
1. Many companies struggle with the design of their compensation plans. Plan design receives the most attention from sales managers, HR and commercial. Yet some common pitfalls include: selecting measures that can’t be supported by existing systems, designing overly complicated schemes, a lack of clarity in plan documentation and poor target setting.
2. Most companies struggle with the execution of their plans (even when the design is first class). Typically, plan execution is under resourced and receives scant management attention. The plan is poorly communicated, systems can’t support the plan and worst of all, there isn’t a robust process for making modifications to the plan or reporting tools for reviewing plan effectiveness.
3. Almost every company fails to recognise the importance of setting the plan foundations before moving into design and implementation. The issues that surface during execution are so often a consequence of shaky foundations. That is, there isn’t a consistent, robust and documented agreement across the sales organisation as to the foundations on which the plan is built. Without clear agreement on the purpose and principles that underpin the compensation strategy, plan design and execution issues must inevitably arise.
Our Ready – Set Go framework provides a 15 x module process starting with effective goal setting all the way through to the SIM evaluation phase.
