Abstract
A persistent theme in business has been the search for the one solution that unlocks the mystery of sales force effectiveness. Sales organizations focus much attention on compensation as the means to drive performance. In most cases, companies are caught in a seemingly endless cycle in which disappointing sales performance prompts a redesign of the commission plan. This article examines companies that have broken the cycle. These companies go beyond the content of plan design to concentrate on the process underlying the redesign effort. The article highlights six leading practices in the design process that combine to create a framework for sales compensation plans that are built to last. Although process is important, sound plan design is central to success. Again drawing from examples at highperforming companies, the article describes six helpful lessons for plan design.
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