Strategies for Managing Sales Teams: How to find, select and compensate these critical hires
Concurrent Session: Sales Performance: Compensate Your Right€¦ · Sales Compensation‐ The...
Transcript of Concurrent Session: Sales Performance: Compensate Your Right€¦ · Sales Compensation‐ The...
March 18‐21, 2014 | Hilton San Diego Bayfront
Concurrent Session: Sales & MarketingPay for Performance: Compensate YourSales Folks Right
Moderators: Subadhra Sriram, Global Editorial Director,Staffing Industry Analysts
Panelists: Mark Donnolo, Managing Partner, SalesGlobe and author ofThe Innovative Sale Stacie Habegger, Chief Sales Officer, The Act‐1 Group, Agile•1 Conor Smith, President, The BOSS Group Scott Wintrip, President, Wintrip Consulting Group and StaffingU
THUR, MAR 20 10:30 AM SAPPHIRE M
Sponsored by:
Sales Compensation‐The Strategic ViewConnecting the Corner Office to the Front Line
www.SalesGlobe.com770 337 9897
March 2014
March 18‐21, 2014 | Hilton San Diego Bayfront
Knowing Your Market‐ SIA and SalesGlobe Staffing Incentive Comp Survey
Participate in the SIA Surveysurveymonkey.com/s/2014StaffingSurveyOpen until April 30
March 18‐21, 2014 | Hilton San Diego Bayfront
Plan Complexity
“I’m not clear on exactly how I’m paid. I just hope the check is right.”
45%
Some Top Issues
Setting Effective Quotas“You hit your quota and get rewarded with a bigger quota next year. It’s not related to opportunity.”
52%
Driving Solution Selling“The plan doesn’t support solution selling. It drives an aggressive sales process and we need to be more consultative.”
36%
Keeping the Organization Engaged
“Our reps aren’t hitting their objectives in this economic environment. We need to keep them focused.”
29%
Supporting the Sales Strategy and Sales Roles
“Our plan promotes behaviors that are different than our strategy.” 39%
Differentiating Top Performers“Our highest earners aren’t necessarily our highest performers. We can’t attract and retain the right talent.”
42%
March 18‐21, 2014 | Hilton San Diego Bayfront
Strategic Context: The Revenue Roadmap
The Revenue RoadmapInsight
Voice of the Customer
Macro Market
EnvironmentCompetitor Performance
Business Performance
Enablement
Sales StrategyProducts & Services
Segmentation & Targeting
Value Proposition
Approach to Market
Customer CoverageSales
ChannelsSales Roles & Structure
Sales Process
Sales Deployment
Incentive Compensation
& QuotasRecruiting & Retention
Training & Development
Tools &
Technology
Charts an actionable growth plan.
Matches roles, resources, and process to customer needs.
Aligns execution with the growth strategy.
Provides information for planning and strategy.
March 18‐21, 2014 | Hilton San Diego Bayfront
C‐Level Goals & Sales Roles
TargetPay
Pay Mix1
2Upside Potential
3Performance Threshold
4
5Levels & Timing
6
Measures & Priorities
Evaluation
12Operations
11Governance
10
The Sales Compensation Diamond
Objectives & Quotas
9Team
Alignment
8Mechanics
7
March 18‐21, 2014 | Hilton San Diego Bayfront
Top Questions C‐Levels Ask
Are we driving the right behaviors? 65%
What are the financial returns and risks? 53%
Does it align with the strategy? 40%
How will it affect recruiting, retention of top people? 34%
Is it easily understood? 20%
March 18‐21, 2014 | Hilton San Diego Bayfront
C‐Level Question Dimensions
oHow is each of the five C‐Level Goal areas represented by the plan or by how we manage?
QuestionRepresentation
Dimension
oWhat behaviors will this motivate that support or conflict with our C‐Level Goals?
Motivation
oWhat are the numerical, measurable results we expect in each of the C‐Level Goal areas?
Results
oWhat other factors, beyond the compensation plan, are we counting on for these results?
Dependency
oWhat are the risks of the program not working or the dependencies not happening as planned?
Risk
oHow can we simplify the approach and make the message clearer?
Simplicity
oHow will we successfully implement this change and what is the C‐level role in that change?
Change
March 18‐21, 2014 | Hilton San Diego Bayfront
Pay for performance: Compensate your sales folks right
Conor Smith, President, The BOSS Group
March 18‐21, 2014 | Hilton San Diego Bayfront
The BOSS Group approach
Pay plans must be simple and transparent Recruiters and sales people are equally important and should have equal earning opportunity We believe that the best approach is to have a full suite of competitive benefits and perks other than simply paying at the highest end of the spectrum
March 18‐21, 2014 | Hilton San Diego Bayfront
What works for The BOSS Group Target of no more than 50% of total compensation coming from base salary Tiered commission program based on experience and tenure. Base salaries remain steady over time. Pay off margin dollars with carrot for exceeding plan and a stick for being below plan
March 18‐21, 2014 | Hilton San Diego Bayfront
Challenges
Need to be creative when recruiting top performers who are used to higher base salaries Integrating temp and perm pay plans in branches that have both services Lead sharing compensation
March 18‐21, 2014 | Hilton San Diego Bayfront
Recommendations
Meet two times a year to review compensation projections / run rate of how each employee will end the year. Make adjustments if needed. Utilize resources from SIA to benchmark. Be transparent with your play plans and pay communication. Establish good will and trust with easy to understand plans.
March 18‐21, 2014 | Hilton San Diego Bayfront
Final Piece of Advice
Never let make your A players come to you for a pay increase. Be proactive in compensation management, planning, and communication.
March 18‐21, 2014 | Hilton San Diego Bayfront
Winning Compensation ‐ Sales
Stacie HabeggerChief Sales OfficerThe Act•1 Group
March 18‐21, 2014 | Hilton San Diego Bayfront
Winning Compensation ‐ Sales
Compensation should be balanced and geared around:
Accessing New Clients Existing Client Expansion Profitability Longevity
March 18‐21, 2014 | Hilton San Diego Bayfront
Leveraging Customer Loyalty
Customer Loyalty
White Papers Press Releases Marketing Material Joint Speaking Engagements
A customer’s open testimony can be directly correlated to the relationship that a sales executive built and the resulting loyalty they have earned through their efforts. It makes sense to compensate a salesperson for this kind of achievement.
March 18‐21, 2014 | Hilton San Diego Bayfront
Common Platform Strategy
Shared Principles or Values
“We win together” Provides the opportunity to reward around non‐traditional milestones Can address efficiencies not customary to standard or conventional plans –
sales cycle time, speed‐to‐deployment, reduced contract process Joint Speaking Engagements Compensation towards Innovation – “Big Idea”
Uniting a common platform for goal achievement within structures that support the sales strategy is a smart way to promote teamwork and to keep everyone on a path toward a common goal..
March 18‐21, 2014 | Hilton San Diego Bayfront
Compensation Essentials
Simple and straight forward, designed to promote specific behavior An employee should be able to quickly determine whether the success or
failure of any action will impact their income and to what degree. If a salesperson cannot quickly calculate personal gain or loss that results
from a business shift, the plan is too complicated. If an employee is not able to access data surrounding their progress or
results, they are not able to respond quickly enough to impact change. Lack of back‐up promotes an element of distrust. “trust me” is not a useful
way to engage.
.
March 18‐21, 2014 | Hilton San Diego Bayfront
Pay for Performance Compensate Your Sales Folks Right
Scott WintripWintrip Consulting Group
866‐789‐6757
Copyright 2014 WCG All Rights Reserved
March 18‐21, 2014 | Hilton San Diego Bayfront
What’s Not Working
Complexity
Configuration
Comfort
Continuity$
Revenue & Profit Gain
$$$Revenue & Profit Drain
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March 18‐21, 2014 | Hilton San Diego Bayfront
Convergent Compensation Model
Modest Guarantees
Aligned Rewards
Zero Cognitive Dissonance
1 2
3
4
1. Incorrect behaviors
2. Lost motivational value
3. Compensation comfort
4. Sustainable system
Copyright 2014 WCG All Rights Reserved
March 18‐21, 2014 | Hilton San Diego Bayfront
Driver
ExpressiveAmiable
Analytic
PreciseData
Regular Recognition
Substantial Upside
Clear Connections
SOCIAL STYLE Model™ byThe Tracom Group
Behavioral Component
Copyright 2014 WCG All Rights Reserved
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Compensation Examples
Copyright 2014 WCG All Rights Reserved
Modest Guarantees Low base, highcommission
Choice between riskand reward
Yearly enrollment period
Zero Cognitive Dissonance
There’s an appfor that ROI math Deal sheets
Aligned Rewards
• Heavy on new business development
• Driver and expressive majority
• Competitive culture
• More farming than hunting
• Improved communication
• Driver and amiable majority
• Collaborative culture
• Hunting and farming
• Referral focus• Driver and analytic majority
• Competitive culture
#1 #2 #3
March 18‐21, 2014 | Hilton San Diego Bayfront
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