Impact of Compensation Plans

Refining Sales Compensation plans and practices is often the most immediate and cost effective opportunity we see in terms of impacting revenue and net profitability.   Sales commission and incentive plans should be driven by the factors that most directly impact your company’s strategic goals.  Incentive plans should also be adaptable enough to influence any short-term and/or intermediate objectives. Accession can help develop sales plans and compensation practices that  clearly communicate company objectives and focus effort toward those objectives.  We can also help structure plans that significantly influence gross margin production.   That’s not all.  Accession Consulting can help you develop plans that will be a advantageous when recruiting high performing sales representatives.  The best candidates assume they will be productive and are attracted to plans that that assure compensation for performance.

Developing Compensation Plans

Compensation plans should be designed to impact the bottom line.  Understanding the bottom line requires more than a cursory understanding of the benefit of elevated sales levels or an increase in gross margin.  Accession follows a 7-step process in developing compensation plans that drive net profitability and focus effort in a manner consistent with company objectives. Once we understand your company’s objectives and financial drivers, we will develop a compensation framework that uses key performance indicators (KPIs) to drive compensation.  These KPIs can be changed as your business needs change.  We also build a financial model to determine the cost of the plan at various sales levels.  This allows for the hard a hard dollar cost comparison of the previous plan.  Of course,  the goal and ultimate measure of success is the impact of the plan on net profitability.

Plan Development

  • Market Analysis
  • Assess Current Plan
  • Define Objectives
  • Develop Comp Model
  • Performance Metrics
  • Model Cost Impact
  • Evaluation Metrics