logging in or signing up Sales Compensation aSGuest4435 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1337 Category: Product Traini.. License: All Rights Reserved Like it (1) Dislike it (0) Added: November 28, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: AnnetteCohen (13 month(s) ago) Great presentation. I've found a tool that has really helped me when i generate sales compensation statements for my employees. It's from OneClick Commissions (http://www.oneclickcommissions.com/sales-compensation.html) and it's super easy to use and takes my excel files and automatically turns them into statements, so I don't have to copy and paste anymore. It's wonderful! :) Annette C. Saving..... Post Reply Close Saving..... Edit Comment Close By: anangsaini (20 month(s) ago) Dear Steve, this was a great piece of Work that you shared. Very thoughtful and aptly presented. Keep up the good work. Thanks Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Sales Compensation: Why Everyone Loves to Hate It : Sales Compensation: Why Everyone Loves to Hate It Steve Treder ICBA Annual Seminar Salt Lake City, Utah 7 May 2008 Sales Compensation: Why Everyone Loves to Hate it : Sales Compensation: Why Everyone Loves to Hate it First Principles: Why and What The Cycle: Neither Start nor End with Design The Thrill of Theory, and the Agony of Practice The Root of All Sales Comp Evil What Can Go Wrong? Plenty. But … When It’s Good, It’s Very, Very Good The Cycle: Focusing Attention Where it’s Due Conclusion: What Doesn’t Kill You Makes You Stronger 2 ICBA Annual Seminar, 7 May 2008 Why Does Sales Comp Exist? : Why Does Sales Comp Exist? You don’t have to use sales comp Many successful enterprises have eschewed it Sales comp often exists for all the wrong reasons: We’ve always done it Everyone else does it Because Sales management loves it If it’s to be used, it should be a conscious, rational choice 3 ICBA Annual Seminar, 7 May 2008 Why Should Sales Comp Exist? : Why Should Sales Comp Exist? Money: powerful motivator, powerful enough to modify behavior Sales revenue: exceptionally quantifiable The performance-reward linkage can be direct and strong If it’s properly tuned, the sales comp impact on business success can be enormous But: if it’s powerful enough to modify behavior in positive ways, it’s powerful enough to modify behavior in negative ways 4 ICBA Annual Seminar, 7 May 2008 What Sales Comp Isn’t, and What it Is : What Sales Comp Isn’t, and What it Is Isn’t: Necessarily using commission Simply variable pay Is: Direct linkage of sales revenue results to pay With “line of sight” as short as possible With significant pay absolutely, positively at risk 5 ICBA Annual Seminar, 7 May 2008 The Sales Comp Cycle : The Sales Comp Cycle 6 ICBA Annual Seminar, 7 May 2008 OBJECTIVE PLAN DESIGN ADMINI-STRATION REVIEW Why it’s Difficult: Mr. Theory, Meet Mr. Practice : Why it’s Difficult: Mr. Theory, Meet Mr. Practice Problems with Objectives: Too easy, too hard, too vague, or not measurable Problems with Design: Too simple, too complex, or not administrable Problems with Administration: Too slow, too inflexible, under-resourced Problems with Review: Too late, too little, or not at all 7 ICBA Annual Seminar, 7 May 2008 The Root of All Sales Comp Evil : The Root of All Sales Comp Evil Nobody “owns” it Herding cats in Sales, Sales Ops, Marketing, HR/Comp, IT, Finance/Accounting, Payroll, and who knows what else Toss geographies and/or product lines on top No company of significant size has ever fully solved this problem 8 ICBA Annual Seminar, 7 May 2008 What Could Possibly Go Wrong? : What Could Possibly Go Wrong? Operational gridlock Inadvertent giveaways Windfalls and droughts “Gaming the system” SPIFs and other patchwork Legal exposure Blamefest and CYA The tyranny of the calendar Loss of credibility and its consequences Business underperformance 9 ICBA Annual Seminar, 7 May 2008 But … : But … That 14th-tee drive … That’s what Sales Comp is like! 10 ICBA Annual Seminar, 7 May 2008 When Objective-Setting is Done well … : When Objective-Setting is Done well … All stakeholders are appropriately involved Valid data, not just hunches and hopes, are employed in the process Objectives are clear Objectives are realistic but strong Objectives are reliably measurable 11 ICBA Annual Seminar, 7 May 2008 When Plan Design is Done Well … : When Plan Design is Done Well … Objectives, roles, and metrics are aligned The “sweet spot” between elegance and simplicity is attained Everyone can see what’s intended The Sales force works with the plan, not against it or around it Administrative needs are designed into the plan 12 ICBA Annual Seminar, 7 May 2008 When Administration is Done Well … : When Administration is Done Well … The Admin team isn’t required to be superhuman The process is planned in advance, not made up on the fly Systems and applications are the right tools for this job The need for adaptability is expected, and flexibility is designed in Day-to-day operations are smooth, and summary statistics and value-add analyses are easily available 13 ICBA Annual Seminar, 7 May 2008 When Sales Comp Review is Done Well … : When Sales Comp Review is Done Well … It’s taken very seriously, and granted sufficient time and resources All stakeholders are appropriately involved It isn’t about scapegoating, it’s about learning and improving Results are assessed as they are, not as how we want them to be The conclusions of the Review are applied in enacting changes 14 ICBA Annual Seminar, 7 May 2008 When That Kind of Stuff is Happening … : When That Kind of Stuff is Happening … Ping!!! 15 ICBA Annual Seminar, 7 May 2008 Greater than the Sum of its Parts : Greater than the Sum of its Parts Behold the power of leverage You don’t have to be strong to hit a golf ball a long, long way You don’t have to be a genius to implement a Sales Comp plan that delivers tremendous business results The simple fundamentals, executed properly, yield dramatic return 16 ICBA Annual Seminar, 7 May 2008 The Sales Comp Cycle : The Sales Comp Cycle 17 ICBA Annual Seminar, 7 May 2008 OBJECTIVE PLAN DESIGN ADMINI-STRATION REVIEW The Phony Mystique of Plan Design : The Phony Mystique of Plan Design Design is fun Design is sexy Everyone wants to do it, whether they know what they’re doing or not Design gets too much credit when things go well, and too much blame when things go badly Designers like to think it’s harder than it is All plans are just variations on the same basic formula; it ain’t rocket science 18 ICBA Annual Seminar, 7 May 2008 The Unsung Heroes of Sales Comp : The Unsung Heroes of Sales Comp Admin, the water-carrying grunt Review, the lonely voice of reason that no one wants to listen to Yet, this is where the low-hanging fruit is to be found This is where the competitive advantage is to be gained 19 ICBA Annual Seminar, 7 May 2008 So … Why Does Everyone Love to Hate it? : So … Why Does Everyone Love to Hate it? It’s always high-pressure It’s often ugly It’s sometimes disastrous Anyone who’s done Sales Comp any length of time has a dozen war stories to tell But … 20 ICBA Annual Seminar, 7 May 2008 If it was Easy, Anyone could do it : If it was Easy, Anyone could do it Survive the war Learn from your mistakes Make improvements, even if they’re small Sales Comp can be the most impactful, rewarding, and fun job you’ll ever have 21 ICBA Annual Seminar, 7 May 2008 Steve Treder : Steve Treder Western Management Group 408.358.0450 ext. 225 www.wmgnet.com stevet@wmgnet.com ICBA Annual Seminar, 7 May 2008 22 You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Sales Compensation aSGuest4435 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1337 Category: Product Traini.. License: All Rights Reserved Like it (1) Dislike it (0) Added: November 28, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: AnnetteCohen (13 month(s) ago) Great presentation. I've found a tool that has really helped me when i generate sales compensation statements for my employees. It's from OneClick Commissions (http://www.oneclickcommissions.com/sales-compensation.html) and it's super easy to use and takes my excel files and automatically turns them into statements, so I don't have to copy and paste anymore. It's wonderful! :) Annette C. Saving..... Post Reply Close Saving..... Edit Comment Close By: anangsaini (20 month(s) ago) Dear Steve, this was a great piece of Work that you shared. Very thoughtful and aptly presented. Keep up the good work. Thanks Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Sales Compensation: Why Everyone Loves to Hate It : Sales Compensation: Why Everyone Loves to Hate It Steve Treder ICBA Annual Seminar Salt Lake City, Utah 7 May 2008 Sales Compensation: Why Everyone Loves to Hate it : Sales Compensation: Why Everyone Loves to Hate it First Principles: Why and What The Cycle: Neither Start nor End with Design The Thrill of Theory, and the Agony of Practice The Root of All Sales Comp Evil What Can Go Wrong? Plenty. But … When It’s Good, It’s Very, Very Good The Cycle: Focusing Attention Where it’s Due Conclusion: What Doesn’t Kill You Makes You Stronger 2 ICBA Annual Seminar, 7 May 2008 Why Does Sales Comp Exist? : Why Does Sales Comp Exist? You don’t have to use sales comp Many successful enterprises have eschewed it Sales comp often exists for all the wrong reasons: We’ve always done it Everyone else does it Because Sales management loves it If it’s to be used, it should be a conscious, rational choice 3 ICBA Annual Seminar, 7 May 2008 Why Should Sales Comp Exist? : Why Should Sales Comp Exist? Money: powerful motivator, powerful enough to modify behavior Sales revenue: exceptionally quantifiable The performance-reward linkage can be direct and strong If it’s properly tuned, the sales comp impact on business success can be enormous But: if it’s powerful enough to modify behavior in positive ways, it’s powerful enough to modify behavior in negative ways 4 ICBA Annual Seminar, 7 May 2008 What Sales Comp Isn’t, and What it Is : What Sales Comp Isn’t, and What it Is Isn’t: Necessarily using commission Simply variable pay Is: Direct linkage of sales revenue results to pay With “line of sight” as short as possible With significant pay absolutely, positively at risk 5 ICBA Annual Seminar, 7 May 2008 The Sales Comp Cycle : The Sales Comp Cycle 6 ICBA Annual Seminar, 7 May 2008 OBJECTIVE PLAN DESIGN ADMINI-STRATION REVIEW Why it’s Difficult: Mr. Theory, Meet Mr. Practice : Why it’s Difficult: Mr. Theory, Meet Mr. Practice Problems with Objectives: Too easy, too hard, too vague, or not measurable Problems with Design: Too simple, too complex, or not administrable Problems with Administration: Too slow, too inflexible, under-resourced Problems with Review: Too late, too little, or not at all 7 ICBA Annual Seminar, 7 May 2008 The Root of All Sales Comp Evil : The Root of All Sales Comp Evil Nobody “owns” it Herding cats in Sales, Sales Ops, Marketing, HR/Comp, IT, Finance/Accounting, Payroll, and who knows what else Toss geographies and/or product lines on top No company of significant size has ever fully solved this problem 8 ICBA Annual Seminar, 7 May 2008 What Could Possibly Go Wrong? : What Could Possibly Go Wrong? Operational gridlock Inadvertent giveaways Windfalls and droughts “Gaming the system” SPIFs and other patchwork Legal exposure Blamefest and CYA The tyranny of the calendar Loss of credibility and its consequences Business underperformance 9 ICBA Annual Seminar, 7 May 2008 But … : But … That 14th-tee drive … That’s what Sales Comp is like! 10 ICBA Annual Seminar, 7 May 2008 When Objective-Setting is Done well … : When Objective-Setting is Done well … All stakeholders are appropriately involved Valid data, not just hunches and hopes, are employed in the process Objectives are clear Objectives are realistic but strong Objectives are reliably measurable 11 ICBA Annual Seminar, 7 May 2008 When Plan Design is Done Well … : When Plan Design is Done Well … Objectives, roles, and metrics are aligned The “sweet spot” between elegance and simplicity is attained Everyone can see what’s intended The Sales force works with the plan, not against it or around it Administrative needs are designed into the plan 12 ICBA Annual Seminar, 7 May 2008 When Administration is Done Well … : When Administration is Done Well … The Admin team isn’t required to be superhuman The process is planned in advance, not made up on the fly Systems and applications are the right tools for this job The need for adaptability is expected, and flexibility is designed in Day-to-day operations are smooth, and summary statistics and value-add analyses are easily available 13 ICBA Annual Seminar, 7 May 2008 When Sales Comp Review is Done Well … : When Sales Comp Review is Done Well … It’s taken very seriously, and granted sufficient time and resources All stakeholders are appropriately involved It isn’t about scapegoating, it’s about learning and improving Results are assessed as they are, not as how we want them to be The conclusions of the Review are applied in enacting changes 14 ICBA Annual Seminar, 7 May 2008 When That Kind of Stuff is Happening … : When That Kind of Stuff is Happening … Ping!!! 15 ICBA Annual Seminar, 7 May 2008 Greater than the Sum of its Parts : Greater than the Sum of its Parts Behold the power of leverage You don’t have to be strong to hit a golf ball a long, long way You don’t have to be a genius to implement a Sales Comp plan that delivers tremendous business results The simple fundamentals, executed properly, yield dramatic return 16 ICBA Annual Seminar, 7 May 2008 The Sales Comp Cycle : The Sales Comp Cycle 17 ICBA Annual Seminar, 7 May 2008 OBJECTIVE PLAN DESIGN ADMINI-STRATION REVIEW The Phony Mystique of Plan Design : The Phony Mystique of Plan Design Design is fun Design is sexy Everyone wants to do it, whether they know what they’re doing or not Design gets too much credit when things go well, and too much blame when things go badly Designers like to think it’s harder than it is All plans are just variations on the same basic formula; it ain’t rocket science 18 ICBA Annual Seminar, 7 May 2008 The Unsung Heroes of Sales Comp : The Unsung Heroes of Sales Comp Admin, the water-carrying grunt Review, the lonely voice of reason that no one wants to listen to Yet, this is where the low-hanging fruit is to be found This is where the competitive advantage is to be gained 19 ICBA Annual Seminar, 7 May 2008 So … Why Does Everyone Love to Hate it? : So … Why Does Everyone Love to Hate it? It’s always high-pressure It’s often ugly It’s sometimes disastrous Anyone who’s done Sales Comp any length of time has a dozen war stories to tell But … 20 ICBA Annual Seminar, 7 May 2008 If it was Easy, Anyone could do it : If it was Easy, Anyone could do it Survive the war Learn from your mistakes Make improvements, even if they’re small Sales Comp can be the most impactful, rewarding, and fun job you’ll ever have 21 ICBA Annual Seminar, 7 May 2008 Steve Treder : Steve Treder Western Management Group 408.358.0450 ext. 225 www.wmgnet.com stevet@wmgnet.com ICBA Annual Seminar, 7 May 2008 22