The contents of this post were first published in Sales Compensation Focus, November 2015.
For some, rolling out the new plan in January is an exciting opportunity to reinvigorate their teams: “We cannot rest on our laurels if we want to meet the increasing growth expectations for our product.” Others might be working on bigger changes, perhaps an overhaul to the current plan or a brand new plan ahead of launch: “We only have one chance to launch and need to get out of the gates fast.”
In the vast majority of organizations, over 80% of the sales incentive plan timeline is spent developing the plan, leaving less than 20% of the time to roll it out to the sales force. In more concrete terms, most organizations will budget around two to three months from start to finish for new sales compensation plans. Assuming a 12-week timeline, this means that 10 weeks will be spent on strategy development, data collection, plan designs, plan modeling, finalization and material content—and only two weeks will be spent developing the communication and training documents needed to roll out the plan to the sales force.