When your sales force has grown to a certain size and you’re ready to “bite the bullet” on an incentive compensation plan, you’ll do your due diligence and investigate WHY other plans at other organizations have succeeded or failed. Right?
But oftentimes you won’t know what hits you until it really HITS you, and it’s too late, and all the time and money you invested in putting your plan together goes down the drain.
I’ve compiled these three main pitfalls our customers suggest to watch out for when implementing your plans, and a little tip—you should actually be looking out for these long before you even start to implement the plan.
1. Lack of a strategy
Or better put—lack of a well-developed strategy that aligns with your company’s overarching goals. Of course you’ll have some kind of strategy, but are you linking it closely enough to the more granular objectives of your organization? Your plan should align with your company’s strategic plan, marketing objectives, and philanthropic endeavors, and reward sales behaviors accordingly.
2. Lack of proper metrics
We mean metrics for success. How will you judge the success of your plan? How will you know if it worked or is working? What specific metrics will you use and what will be your timeline for the milestones? You shouldn’t only be thinking about profits. You should also be thinking about best practices, sales behavior, safety, quality, and customer satisfaction.
3. Lack of buy in
Implementing a sales incentive compensation plan requires across-the-board alignment from all key stakeholders, including leaders in marketing, finance, HR, and IT. The best incentive compensation plans incorporate rounds of feedback from all of these departments and prevent any unwanted and unpleasant surprises when the plan finally goes into action.
If you’re going to do your due diligence you need to seriously consider all of the above, but looking at an incredible case study of success would help, too. Australia’s largest telecommunications and media company, Telestra, with seven different business units, 20 countries, and 9,000 payees, is hitting it out of the park right now with its incentive compensation plan.
Register for this webinar to learn how they’re doing it and how they got it going.