August 5, 2019 | Written by: Kevin Gray
Categorized: Sales Performance Management
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Building a strategy and doing the right planning in order to achieve corporate objectives is the key to any business, and no doubt, planning sales compensation plays a crucial role in meeting those goals. A lot of time and effort goes into planning these at the beginning of the year, but sudden changes in the business environment or market dynamics can always overturn your planning assumptions. So, plans are never etched in stone and organizations, more often than not, run into situations or circumstances that make it imperative to re-consider their sales compensation plans.
Anything can happen
Consider the following scenario: You did all the work to get your sales comp plans right for the year. You have aligned the goals with the annual operating plan for the business, made sure the most important sales were properly emphasized, prepared rollout materials that were motivating and crystal clear, and you’ve got your systems and processes configured to manage those solid plans. But then, something changes. Your market softened or soared, you acquired your biggest competitor and have a real change in your offering, you’ve had an unforeseen delay in availability of a new product, supply issues have resulted in product stock-outs, raw material costs have changed dramatically, and a price increase is necessary. Clearly, you see there are many ways that reality can overturn your planning assumptions.
It is no wonder you too might have been in such a situation in the past or currently facing one in your organization. No doubt, such situations if not handled tactfully or is backed-up with solid reasoning or not communicated effectively can lead to a lot of resistance among the sales force causing low morale which eventually will end up impacting their sales performance.
So, what do you do about the plans, when do you change the goals or the plan structure? What are the keys to continuing to maximize the motivational value of the plans and manage plan costs well through all of this? Well, such a situation calls for an agile approach making some corrections and adjustments in the sales comp plan. But, how do you do it? What are some of the strategies or effective approaches you can turn to? What adjustments can be made and communicated to keep up the motivation and morale of your sales force high?
Learn how to be prepared
Join us for an on-demand, free of charge webinar as Kevin Gray, Sr. Portfolio Marketing Lead for IBM Sales Performance Management discusses, in depth, with Donya Rose, Managing Principal for The Cygnal Group, about some unique ways of approaching mid-year plan adjustments with best practices and real examples.