Wednesday, December 19, 2012

Absolute vs Relative Performance IV

It is better to not waste time discussing goal-driven program options if a company is unable to implement them.

Assessing the feasibility of using relative performance metrics is the first challenge your sales compensation design team should tackle.  If relative measures are not appropriate, the sales compensation structures and mechanisms available are rather narrow as you are essentially left with absolute program options, the most common of which are detailed later in this chapter.  

It is better to not waste time discussing goal-driven program options if a company is unable to implement them.

ACTION POINT: Does enough accountability exist within our sales organization so that we can use management-defined objectives?

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