Incentive Compensation plan facilitates the alignment of salespeople behavior with broader business objectives. There are guiding principles that need to be followed while designing an incentive plan.
Incentive Compensation is inherently a complex business process. The complexity is generally accentuated due to several reasons such as: 1.Geographically diverse business environments. 2.Dynamic market conditions
Do you still rely on Excel spreadsheets to manage sales incentive calculations for your pharma salesforce? Here are 7 signs you should start thinking about implementing an IC solution instead of spreadsheets for incentive management.
Management by Objectives is a management strategy which helps in alignment of broader corporate objectives by cascading down higher strategic goals to individual level goals depending on their function and expectations from their role. This approach was most prevalent for higher level roles and in industries with poor quality sales data or in cases where higher volatility in sales is observed. In the pharmaceutical industry until recently, this incentive plan type was primarily seen for managed markets roles and a few managerial roles. With the evolution of sales roles for specialty therapeutic areas, higher collaboration requirements with other teams and stringent compliance regulations, several companies are moving towards a combination of qualitative and quantitative sales performance measures to calculate incentives of their salesforce to account for changing business dynamics.
Why sales organizations around the world use sales quota achievement as a primary performance metric? It is because sales quotas can help provide visibility to the salesforce on the target that needs to be hit and align the sales force to broader business objectives. In addition, quota achievement plans are easy to administer by HQ and easy to understand by the salesforce which results in increased motivation and engagement of the salesforce.
Aurochs software launches its Objectives Management solution- a self-service module that helps pharmaceutical companies to efficiently administer management based objectives.
No plan no result! It's always good to plan your sales meetings beforehand to get most out of them. Pre-call preparation includes many aspects from the introduction to presentation to handling objections to closing. A simple pre-call homework ensures high closure rate besides maximizing the use of limited face to face sale time.
The life sciences industry is evolving quite a bit with more and more companies focussing on the research and commercialization of specialty drugs. These new product launches at times are in relatively newer areas and always brings in too many uncertainties with them. Despite of thorough market research using epidemiology techniques and availability of sophisticated forecasting tools/methodologies, it is often difficult to predict how a newer product is going to do in any particular market.
“What-if” calculators help clarify the relationship between sales performance, corresponding performance measures, other plan parameters and final plan earnings.
A comprehensive assessment of IC plan administration based on four critical aspects - Outcomes, Processes, People and Systems. Our Incentive Plan administration health check tool helps you to identify the level of effectiveness of your IC plan administration based on the above aspects.
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