Strategic Sales Compensation Report Card

Use the categories in this report card to evaluate your sales compensation plan. Grade your program according to the dimensions of the Sales Compensation Diamond from Chapter one, What Your CEO Needs to Know About Sales Compensation, that articulate the key steps in plan evaluation and design. Select the grade that most closely represents your organization’s performance in each area. Once you are done, have each of your team members do the same, and compare results and potential actions.
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    We have a clear understanding of our Revenue Roadmap and the upstream and downstream disciplines that connect to sales compensation.
    We have articulated our C-Level Goals around Customer, Product, Coverage, Financial, and Talent priorities.
    The sales compensation plans reflect those C-Level Goals overall.
    Our sales jobs are clearly defined and align with the sales strategy.
    We have clearly defined our sales management roles and sales management offer.
    Please enter one response per row
    We target our pay competitively for the roles that are strategically important to the organization.
    Our pay mix for salary and target incentive aligns with the characteristics of each sales role.
    We use the Reverse Robin Hood Principle to significantly differentiate pay for top performers.
    Our top earners are our top performers.
    We don’t over-pay low performers.
    Please enter one response per row
    Our performance measures represent the priorities of each role with an emphasis on the Financial and Customer categories.
    We pay for only the critical few measures for each job and manage to the rest.
    Reps and managers can control the performance measures in their plans.
    Our measurement and payment frequency (e.g., monthly, quarterly, etc.) matches the rhythm of each role’s sales cycle.
    Plan mechanics are structured simply and create a clear line of sight between performance and pay.
    Please enter one response per row
    Our program creates directional and motivational alignment between the front line sales organization and management.
    Our program connects our sales teams together where they need to collaborate to be effective.
    The quota process is understood and accepted positively by the organization.
    Quotas are based on the sales potential in the market or accounts rather than historic performance alone.
    We have clear and objective policies that govern how the plan should operate.
    Please enter one response per row
    Our C-level executives are involved at the right points from setting strategy to connecting with the front line.
    Our C-level executives ask the right questions around Representation, Motivation, Results, Dependency, Risk, Simplicity, and Change.
    We communicate and manage plan change effectively from plan inception through implementation.
    We know our compensation ROI and financially model plan scenarios to understand potential performance and costs.
    We operate the plan efficiently and regularly evaluate plan performance and organization feedback as input to the next plan design cycle.
    Please enter one response per row