Incentive Compensation plan operational strategy needs to be reviewed regularly. Many companies rely on excel spreadsheets or home-grown script based solutions to manage their salesforce incentive compensation programs. These solutions are generally preferred because of familiarity and perception of control without necessarily understanding the associated limitations.
IC Management reports should be a compulsory fixture in your ongoing ICM process. Management can identify subtle motivational issues with the existing plan and support the sales leadership in course correction using such reports. Such timely tweaks to the IC plan/sales communication/quotas, etc can help ensure your IC plan is always performing at peak capacity.
IC plan operations is generally considered more tactical and is not given the importance it deserves. In this blogpost, we will discuss how to perform a health check for your incentive compensation operations.