Would Sales leaders like MBOs more if we changed the name?

Posted by Mike Martin on Tue, Nov 18, 2014

A couple times on this ZS blog I have written about Management by Objectives (MBOs), such as how to improve them by focusing on quality over quantity and using the IMPACT framework to create more impactful objectives.  However, I still find that the name “MBO” carries a lot of baggage.


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Back to Basics: How to Set Good Sales Quotas

Posted by Chad Albrecht on Tue, Oct 21, 2014

In prior Back to Basics blog posts, we have walked through how to establish pay levels, pay mix, and the incentive plan design. But many plan designs are tied to performance vs. sales quotas and, as any salesperson will tell you, the plan design is only as good as the quota that goes with it.


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Back to Basics: Four Ways to Maximize Your Use of SPIFs and Contests

Posted by Steve Marley on Thu, Oct 09, 2014

In a previous blog in this series, Chad wrote about sales compensation plan periods and noted that the majority of companies follow an annual performance period. I look at annual performance periods as akin to a long race, whether it’s a 5K run or the Indy 500.

Unlike shorter races – such as 100m or 200m dashes or an automotive drag race where you go full speed for a brief duration – longer races require strategy: when to pass, when to conserve energy, when to work with someone for mutual benefit or when to take a break (like a pit stop).


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Back to Basics: Incentive Compensation Plan Periods and Payout Frequency

Posted by Chad Albrecht on Thu, Oct 02, 2014

The majority of companies follow an annual incentive plan period for salespeople.  This is likely for multiple reasons.  First, executive compensation and broad-based compensation programs – two additional categories of compensation programs – are almost always annual.  For consistency, companies place salespeople on annual plans, as well.  Second, most companies have an annual business planning process and annual incentive compensation plans and goals tie in nicely with this planning process.


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Back to Basics: Adding Accelerators or Decelerators to Your Incentive Compensation Plan’s Payout Formula

Posted by Mike Martin on Mon, Sep 29, 2014

In the prior blog post, we described how to design your incentive compensation plan’s payout formula, and we briefly mentioned the concepts of accelerators and decelerators.  At a high level, accelerators are used to encourage increased performance and decelerators are used to safeguard against significant overpayments. 


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