As a Business Analyst one of my tasks was to support & design the Incentive plan for the Sales /Client management population I was advised to keep the following checklist in mind while providing support to the design project. This check list can also help identify issues and problems with the existing sales compensation plan.
- The sales incentive plan must support the marketing strategy and the long-term continuity of the sales force.
- If the Return on Investment is negative or marginal the program should be reevaluated.
- Tactical issues usually revolve around avoiding the following:
- Over or underpaying the sales force
- Ignoring new business development
- Resisting management and “doing my own thing”
- Gaming the goal-setting process
The checklist indicates issues & problems with the incentive plan that need further analysis before a new plan can be modeled and then effectively implemented.