LeapComp - Sales Performance Management Blog

Managing Change
Preparing sales people to focus their time on new objectives is no small endeavor. Field sales organizations in particular are less likely to conform due to their remote nature. The good news is that a well-designed incentive plan can motivate the necessary change. A poorly designed plan and or bad execution of the plan can be worse than no change at all, as disenfranchised sales and service people can upset customers and contribute to a loss in profitability.

New incentive-plan execution is often the wobbly third leg of the incentive-plan-management stool (with discovery/prioritization and plan design being the other two legs). Communication is a critical component of implementation, and good communication starts at the top. Leadership must clearly define and consistently reinforce the rationale for moving to a more profit-based system. All members of the management team must demonstrate behaviors that are consistent with the new order.

Compensation’s role is to ensure that pay differential aligns with the profit-enhancing outcomes being reinforced by management. The line manager is a crucial component in this mix. Ensure line managers thoroughly understand the crediting rules under the new plan, and what is the range of potential pay based on various and realistic performance scenarios. Help enable the manager to motivate each individual sales person through coaching discussions around the opportunities for performance and pay. This should be a one-on-one exercise, since each individual’s motivation for performance, pay and recognition is slightly unique. Managers need to know that compensation management will quickly address issues surfacing from the line. Conducting a line or line-manager focus group prior to plan roll out can surface what will likely be issues once the plan goes live.