Image 1 of 1
Image 1 of 1
Image 1 of 1
Image 1 of 1
Business disruption has made the traditional annual sales plan increasingly fragile. Customer expectations, economic conditions, regulation, technology, artificial intelligence and competitive pressure can shift faster than a fixed compensation plan can respond.
The Harvard Business Review Analytic Services paper, sponsored by SAP, argues that sales performance management has evolved beyond incentive compensation. At its best, it connects strategy, planning, territory design, quota setting, performance visibility, analytics and compensation into one operating discipline.
My view is that this is fundamentally a leadership issue. Compensation can focus attention, but it cannot replace strategy, coaching, accountability or customer value. The strongest sales organizations use incentives as one lever inside a larger performance system.
Business disruption has made the traditional annual sales plan increasingly fragile. Customer expectations, economic conditions, regulation, technology, artificial intelligence and competitive pressure can shift faster than a fixed compensation plan can respond.
The Harvard Business Review Analytic Services paper, sponsored by SAP, argues that sales performance management has evolved beyond incentive compensation. At its best, it connects strategy, planning, territory design, quota setting, performance visibility, analytics and compensation into one operating discipline.
My view is that this is fundamentally a leadership issue. Compensation can focus attention, but it cannot replace strategy, coaching, accountability or customer value. The strongest sales organizations use incentives as one lever inside a larger performance system.