Conclusion: An Incentive Plan Design Process
A good compensation plan is simple and predictable. It is easy to understand, so that people can link their performance with their pay. It is predictable, so that people can plan their efforts. A good plan is fair and flexible to accommodate new product launches and volatile markets. It is economical, yet competitive. Finally, it meets the needs of its three most important constituents: the customer, the sales force, and the company. The four-step process in Figure 10-48 shows how to develop the appropriate incentive plan.
Figure 10-48. An Incentive Plan Design Process.
Get The Complete Guide to Accelerating Sales Force Performance now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
