Misalignment Identification III

If you were a sales rep and were informed of the company's current and long-term business objectives, what would your reaction be, considering the current sales compensation plan? 

The best way to answer the question "do the prevailing sales compensation programs encourage sales representatives to achieve the desired objectives?" is to place yourself in the sales rep's shoes.   If you were a sales rep and were informed of the company's current and long-term business objectives, what would your reaction be, considering the current sales compensation plan?  Don't answer this question solely based on how you would maximize your income, but also factor in quality of life and cash flow. Start with the assumptions that most sales representatives, especially those with more than a few years' tenure, have developed a lifestyle consistent with the income they are currently making.

Ask yourself questions such as: What's the downside for a rep if he or she doesn't support the strategy? How much change would be required in terms of learning new products and their applications or understanding a different group of customers?  How long is the sales cycle?  Will it take months or years to see the desired results? Reflecting on questions such as these will help identify the degree of potential misalignment that exists with the prevailing sales compensation program and the company's strategy.  Ultimately, it is a senior management decision as to whether enough misalignment exists to merit changes to the sales compensation program.

ACTION POINT: Make clear the results you want your sales comp plan to achieve.