A Proven Approach To Sales Force Compensation A Proven Approach to Sales Force Compensation

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Opportunities in Chaos

As we're all beginning to execute our plans for 2010 – we know one thing for sure... It will be a better year than 2009.

The economy is showing signs of a turnaround, and while the crisis isn't over yet most of us have moved on and are focused on what we need to do to grow our business.

We know you have a plan.

And we bet it's a good one.

But there's one thing you need to think about if you want that plan to work the way you hope it will...

Is chaos going to get in your way?

No matter how good your plan is, no matter how solid your business model is, if your systems aren't strong, your business isn't going to respond the way you need it to.

We're talking about your compensation systems in particular.

If your business is like most, you have an official compensation plan.

Maybe you have more than one, but there's still a system for compensating your sales force, and it supports your business model.

Or, it was originally designed to support your business model.

But if your business is like most, it's not as water-tight as it was when you designed it.

You made exceptions to keep your top people. You made exceptions to reward loyalty. You made exceptions when you really wanted to recruit someone.

If exceptions are pervasive through your company, it's possible that the way you are compensating people bears little relation to what you intended. And just like if you drill holes in a boat, those exceptions make it harder to steer your business in the direction you want.

So how bad is it?

We can tell you.

We use what we call a Chaos Chart to compare what you intended to pay to your sales force with what you actually paid.

We start by identifying the intended payout at each GCI level. We create a line by connecting the dots to show this level across the chart.

Then we enter a red dot showing what each sales force member was actually paid last year.

If the dots are close to the line, your company is in good shape: Your systems are working and people are being paid according to your business model.

If your dots are not lining up and in fact are spread across the chart, you're not paying people according to your plan. Your compensation systems are not working the way you intended them to.

Curious about how your company looks?

Get your own Chaos Chart Analysis for just $300.

You need to send us your official compensation plan(s) plus actual payout for each member of your sales force. We'll produce a Chaos Chart for your business and present the results to you.

You'll gain a lot of insight into what's happening at your company – and a chart you can use in management meetings to illustrate the problem to everyone.

Email at or call +1 704-541-9695 to request your Chaos Chart. 

 

 
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