PHASE 11: COMPENSATION DESIGN & QUOTA SETTING
Sales compensation plans that enable the company to achieve its revenue targets and maximize incentive compensation to reps that deliver results, without breaking the bank.
Best-in-class compensation plans align sales performance to corporate strategic objectives; they help attract and retain A-players and drive the desired selling behavior and performance, positioning the company for greater success.
Rapid Diagnostic
- The compensation plans drive behaviors that align to the organization’s objectives, strategy and roles.
- Our sales compensation plans are industry competitive and enable us to attract and retain top sales talent.
- The ratio of base salary to target variable incentive (i.e. target pay mix) is tailored to the selling role.
- The plan creates a strong relationship between pay & performance and has significant upside opportunity.
- The plan contains no more than 3 measures and each measure represents > 20% of earnings opportunity.
- Territories are balanced on revenue/bookings opportunity and earnings potential.
- At least 50% of your sales reps achieved quota last year and at least 90% of reps earned some incentive.
- We are able to forecast sales results and set quotas within 10% accuracy.
- Sales leaders and reps can clearly articulate the compensation plan and plan mechanics.
- We have the right systems to accurately measure results and administer the plans in a timely fashion.
Deliverables
- Compensation Deliverables & Tools:
- Current Plan Assessment (incl. Market Pricing & External Benchmarking)
- Compensation Plan Design (incl. Pay Levels, Pay Mix, Measures & Weights)
- Financial Models (incl. Organization Summary and Rep-Level Impact)
- Compensation Calculator (incl. Payout Tables & Sample Calculations)
- Communication Material (incl. Plan Documents, FAQ Sheet, Terms & Conditions, & Train- the-Trainer)
- Sales Rep Survey
- Quota Deliverables & Tools:
- Account & Territory Potential
- Rep Production Capacity Model
- Quota Setting & Assignment Methodology
- Quota Setting Process
- Quota Stress Testing
- Sensitivity Model (i.e. Forecast vs. Payout)
- Design Committee Global Governance Framework
- Communication Plan
- Design Committee Global Governance Framework
- Communication Plan