5 common mistakes with sales incentive systems: not ensuring that sales and finance are aligned
TRANSCRIPT
Overcoming 5 common mistakeswith sales incentive systems
Not ensuring that Sales and Finance
are aligned
COMMON MISTAKE#
Sales and Finance have different plans and goals for the sales compensation system.
Sales Finance
We need to increase revenue!
Simple and clear plans are more effective in
the field.
Admin tasks take away from time
with clients.
We need more analytics.
Decrease cycle times!
Reduce errors!
We need to improve our margins.
Sophisticated and complex plans drive profitable behavior.
We need to reduce IT and admin costs.
There should be more self-service
in Sales.
More regulation!
Faster information!
Address the natural tensions between the Sales and Finance teams.Tip
Leaders in each department must openly discuss their challenges, needs and environments.
Find a compromise that communicates goals, expectations
and timeframes.
Use Finance’s experience to help in
analytics, reporting and compliance.
Work with both Sales and Finance teams to design a plan and system that work overall.
Tip
FinanceSales
compensationPlan and system
Sales
Unify the Sales and Finance departments
Invest in technology. It’s a win–win situation for both Finance and Sales teams.
Tip
of respondents using an incentive compensation system say that it has “substantially contributed to an effective sales incentive system.”
CFO Research Study
Download the white paper Conversations on incentive compensation: The changing
role of finance in pay for performance.
Reasons for the tension between Sales and Finance
Ideas for bridging the gap between Sales and Finance
Benefits you can expect as your sales compensation strategy successfully evolves
Discover additional IBM sales performance management resources.
http://ibm.co/SPM