Compensation plan performance is a rich source of insight for sales managers and ops, in addition to compensation teams. It offers both leading and lagging information that helps shape the sales strategy. For example:

• See attainment drop-off points where quotas are oversized
• View the pipeline sources that contribute to seller success and ensure equitable distribution
• Where should the next $ in the sales machine be invested?
• And many, many more interesting questions

Excellence in sales compensation plan health is (1) holistic (2) based on data (3) structured and productionzied (4) completed by Comp and Ops. A standard output should endeavour to address 8 key questions and the following set of insights:

Holistic sales comp plan health assessment

As a second part of comp plan health, it is important to get inputs from the people it impacts most. As good practice and building connections with the sales reps, every year a 'comp health' assessment should be produced through a combination of questionnaires, quarterly sales performance, and ongoing issue ticket tracking. This helps prioritise the comp plan changes going forward. It helps leaders understand how the plan is landing (i.e. how the investment in sales compensation is being perceived in conjunction with attainment).

Plan health scorecard to run every year

Consultancy Rating 3/5