Here’s a question every CRO, CFO and Chief Revenue Officer should be able to answer: “If my sellers executed my compensation plan perfectly, would they execute our strategy or sabotage it?” For many organizations, it’s an uncomfortable question because most companies assume their incentive plans reinforce strategy. But many compensation plans suffer from a hidden
Your sales team hit 110% of quota. Revenue is up. Incentive payouts are on budget. So why is profitability down? This is one of the most uncomfortable questions Sales Compensation, Revenue Operations and Finance leaders should be asking. For decades sales performance has been measured almost exclusively by quota attainment, bookings, revenue and incentive payout.
Every sales compensation leader knows too much time is spent arguing about which KPIs to include in an incentive plan. Too little time is spent asking how much each KPI should be worth. It’s a decision that’s often left to Excel wielding experts instead of business leaders. But it doesn’t have to be. Weighting your
The biggest mistake with sales compensation incentives is often assuming more KPIs will lead to better alignment. In reality, they tend to do the opposite. When plans try to incentivize revenue, margin, new customers, retention, cross-sell, product mix, customer satisfaction, pipeline generation, strategic products and everything else executives care about, sellers are left confused about
