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Answer Upon - Halloween and Other Fall Happenings
Crisis mis-management truth or paradox?This is the result of a management style that fails to consider a variety of forces at work in organizations today. Many executives and managers that I have interviewed during may career seem to have had a romantic love affair with this style of decision making, delegation, policy making and utilization of corporate resources. They seem almost proud, that this is the way they run their organizations.I will grant you that in today's changing business climate, it is critical that managers and their organizations remain flexible, poised to react and ready to change course with limited knowledge or advance planning. In order to remain competitive it is vital that companies shed old baggage quickly and effectively. This old baggage can be an outdated product, service, policy, procedure, employee or anything that stands in the way of effective progress. Too often progress, and the need to grow or ex
Step 3 - Develop a Draft Sales Compensation Plan: The plan is actually the sum of the parts needed to achieve the identified sales and marketing strategy in the most effective manner. The parts should consider participants, setting and measuring of performance targets and thresholds, award determination and funding, and the rules for administering the program, including splits and sharing of awards, payout mechanics, and a host of other issues that prove the point, “the devil is in the details”.
Step 4 - Modeling the New Plan: Many companies fail
Here’s a question I recently received from a subscriber who was looking for more leads for his direct sales business. He wrote:*Question*: My wife and I have been an associate for a particular company for several months now and we are indeed very happy with the products and support training.Our problem is getting other people to view our link or getting them to open it at all, I suppose. We need to expand our effort to new associate recruiting and would like your input as to how we might do this. Thank you for reply to this letter.*Answer*: Thanks for the question. I know that the problem you face is what many direct sales reps face as well. Right now, you are using the website that the company provided to you. It’s the same site that the other reps are using and it really doesn’t say much about the two of you as unique people.Your site also makes people enter a code before even viewing it. I understand that this is so you
Sales compensation plans are important to the success of a company, yet many organizations fail to get it right the first time. So when fall rolls around and the sales numbers are as cool as the weather, companies begin to review their sales compensation program, intending to make changes. Changing the plan on an annual basis is time consuming, and has a detrimental effect on the sales forces’ perception of why the company keeps making these changes; credibility generally suffers as a result. Assuming that an organization has done its homework and recognizes that its program is not achieving the intended results, a plan redesign can be accomplished in time to permit a new plan to be developed, tested, and readied for roll-out well before its effective date, usually the beginning of the next fiscal or calendar year. In order to achieve the desired results, it is best not to be rushed, but rather to have sufficient time in which to review and redesign the plan without the extra pressure of an unrealistic, last minute deadline.
In order to accomplish this in a systematic and effective manner, we suggest that the following six (6) step approach be taken:
Step 1 - Clarify the Sales and Marketing Strategy: Although this seems very elementary, it is not unusual for a company to attempt to design a new sales compensation plan without having a consensus among Senior Management as to where their sales focus should be, which products or services to emphasize, and in some cases, what the role of the sales person should be. We recognize that some of these factors will change during the course of a year, and the plan should allow for the focus to be modified without radically altering the plan or having “to throw the baby out with the bath water”. Once the focus items have been identified, they need to be prioritized from most important to least important.
Step 2 - Determine the Desired Mix and Amount of Sales Compensation: There is a considerable amount of reliable comparative market data on companies and industry segment, how much variability should there be in pay, and what should the sales personnel be paid for (units, revenue, price or margin). Using this as a baseline, the company should decide on its intended Sales Compensation Philosophy. Specifically, it will define the mix between fixed pay (salary) and incentives, bonuses, and/or commissions. These typically range from 50/50 to 70/30, but each company will have to determine what is really best for its own sales force. This will serve as the “stake in the ground” for evaluating the current pay program and for any redesign.
Step 3 - Develop a Draft Sales Compensation Plan: The plan is actually the sum of the parts needed to achieve the identified sales and marketing strategy in the most effective manner. The parts should consider participants, setting and measuring of performance targets and thresholds, award determination and funding, and the rules for administering the program, including splits and sharing of awards, payout mechanics, and a host of other issues that prove the point, “the devil is in the details”.
Step 4 - Modeling the New Plan: Many companies fail t
Buying a mannequin - even a used one - can be expensive so here are some tips to make sure you buy the right mannequin for your needs. The tips in this guide are for full-bodied mannequins, not dress forms which are discussed in another guide.Mannequins are called silent salespeople because they make products look more appealing. People always react better when they see clothing as it should be worn.There are 4 basic styles of mannequins - Realistic, Abstract, Headless and Bendable. Realistic Mannequins have clearly defined facial features and wigs styled in life-like hair styles. This is the style of mannequin used in the windows of high-end retail stores such as Neiman Marcus and Nordstrom.Realistic mannequins are like Supermodels - a little high maintenance but their striking presence causes people to look and take notice.Some realistic mannequins - the more expensive ones - are fiberglass sculptures of actual real-life
In order to accomplish this in a systematic and effective manner, we suggest that the following six (6) step approach be taken:
Step 1 - Clarify the Sales and Marketing Strategy: Although this seems very elementary, it is not unusual for a company to attempt to design a new sales compensation plan without having a consensus among Senior Management as to where their sales focus should be, which products or services to emphasize, and in some cases, what the role of the sales person should be. We recognize that some of these factors will change during the course of a year, and the plan should allow for the focus to be modified without radically altering the plan or having “to throw the baby out with the bath water”. Once the focus items have been identified, they need to be prioritized from most important to least important.
Step 2 - Determine the Desired Mix and Amount of Sales Compensation: There is a considerable amount of reliable comparative market data on companies and industry segment, how much variability should there be in pay, and what should the sales personnel be paid for (units, revenue, price or margin). Using this as a baseline, the company should decide on its intended Sales Compensation Philosophy. Specifically, it will define the mix between fixed pay (salary) and incentives, bonuses, and/or commissions. These typically range from 50/50 to 70/30, but each company will have to determine what is really best for its own sales force. This will serve as the “stake in the ground” for evaluating the current pay program and for any redesign.
Step 3 - Develop a Draft Sales Compensation Plan: The plan is actually the sum of the parts needed to achieve the identified sales and marketing strategy in the most effective manner. The parts should consider participants, setting and measuring of performance targets and thresholds, award determination and funding, and the rules for administering the program, including splits and sharing of awards, payout mechanics, and a host of other issues that prove the point, “the devil is in the details”.
Step 4 - Modeling the New Plan: Many companies fail
There is one thing that all business owners, managers, and shareholders have in common, no matter where in the world we are from, we all want to make money! The methodology and the understanding of how to make money varies widely however, as a consequence my experience is that less than 20% of businesses really make an acceptable profit, which is bankable!Business is no different to a professional sporting venture in that it requires; Working as a team. Having flexible game plans. (strategies) The ability to conduct detailed analysis. Sound administration. Choosing good support.(suppliers, employees and professional advisors) Respecting and knowing your opposition. Introducing plenty of training. Playing to win. The very foundation of good performance in any company comes down to structuring y
Step 1 - Clarify the Sales and Marketing Strategy: Although this seems very elementary, it is not unusual for a company to attempt to design a new sales compensation plan without having a consensus among Senior Management as to where their sales focus should be, which products or services to emphasize, and in some cases, what the role of the sales person should be. We recognize that some of these factors will change during the course of a year, and the plan should allow for the focus to be modified without radically altering the plan or having “to throw the baby out with the bath water”. Once the focus items have been identified, they need to be prioritized from most important to least important.
Step 2 - Determine the Desired Mix and Amount of Sales Compensation: There is a considerable amount of reliable comparative market data on companies and industry segment, how much variability should there be in pay, and what should the sales personnel be paid for (units, revenue, price or margin). Using this as a baseline, the company should decide on its intended Sales Compensation Philosophy. Specifically, it will define the mix between fixed pay (salary) and incentives, bonuses, and/or commissions. These typically range from 50/50 to 70/30, but each company will have to determine what is really best for its own sales force. This will serve as the “stake in the ground” for evaluating the current pay program and for any redesign.
Step 3 - Develop a Draft Sales Compensation Plan: The plan is actually the sum of the parts needed to achieve the identified sales and marketing strategy in the most effective manner. The parts should consider participants, setting and measuring of performance targets and thresholds, award determination and funding, and the rules for administering the program, including splits and sharing of awards, payout mechanics, and a host of other issues that prove the point, “the devil is in the details”.
Step 4 - Modeling the New Plan: Many companies fail
NLP or Neuro Linguistic Programming has both supporters and detractors. Some of the problems associated with NLP revolve around the claims made on its behalf, lack of a clear definition and some people being wary about what appears to be "New Age" snake oil.NLP does suffer from the lack of a single unifying theory that has been scientifically tested. Instead it is a collection of techniques which have a pragmatic approach to producing results. NLP is used for therapy, to improve communication, to improve performance and to influence people. Its success, as with most techniques, depends on the skill of the practitioner and the selection of the most effective NLP technique for a specific problem.NLP in business is potentially a very powerful tool. My personal opinion is that NLP should be a compulsory subject in all business education because of the improvement to an individual's performance. I might even be persuaded to recommend it as a s
Step 2 - Determine the Desired Mix and Amount of Sales Compensation: There is a considerable amount of reliable comparative market data on companies and industry segment, how much variability should there be in pay, and what should the sales personnel be paid for (units, revenue, price or margin). Using this as a baseline, the company should decide on its intended Sales Compensation Philosophy. Specifically, it will define the mix between fixed pay (salary) and incentives, bonuses, and/or commissions. These typically range from 50/50 to 70/30, but each company will have to determine what is really best for its own sales force. This will serve as the “stake in the ground” for evaluating the current pay program and for any redesign.
Step 3 - Develop a Draft Sales Compensation Plan: The plan is actually the sum of the parts needed to achieve the identified sales and marketing strategy in the most effective manner. The parts should consider participants, setting and measuring of performance targets and thresholds, award determination and funding, and the rules for administering the program, including splits and sharing of awards, payout mechanics, and a host of other issues that prove the point, “the devil is in the details”.
Step 4 - Modeling the New Plan: Many companies fail
Managing cash flow can be a challenge for many businesses. But creative funding options like invoice factoring and purchase order (PO) financing can make the job much easier.These financial solutions offer convenient, cost-effective and immediate access to working capital. Invoice factoring and purchase order financing are suitable for companies in just about any industry. They can provide financial support to expand, manage business surges or even meet day-to-day operating expenses. And they're ideal if your company is newer and can't obtain a loan.The Ins and Outs of Invoice FactoringInvoice factoring is easy to set up and terminate. To qualify, you should have no existing primary liens or claims on your accounts receivable. And you must have creditworthy clients who pay their invoices promptly and in full.When factoring customer invoices, you can receive quick cash advances often within 24 hours. Your cash advance is base
Step 3 - Develop a Draft Sales Compensation Plan: The plan is actually the sum of the parts needed to achieve the identified sales and marketing strategy in the most effective manner. The parts should consider participants, setting and measuring of performance targets and thresholds, award determination and funding, and the rules for administering the program, including splits and sharing of awards, payout mechanics, and a host of other issues that prove the point, “the devil is in the details”.
Step 4 - Modeling the New Plan: Many companies fail to test the new plan design under historic and “what if” scenarios. Without this step, we really don’t know what the impact will be on the current sales personnel, or based on the anticipated performance levels. This is, in effect, a cost/benefit analysis to see how the best sales people will be treated under different scenarios. A point to remember is that the plan may have the effect of increasing turnover, most likely impacting the worst members of the sales force. If the salesperson is achieving his/her level of expectation, pay will be at the right level, and vice versa. If time and budgets permit, modeling can take the form of a full-blown pilot study; this is more complicated, but will provide evidence of results that can justify moving forward with the process organization-wide.
Step 5 - Implementation and Administration: Putting a new plan into operation takes a lot more work and thought than one may be willing to admit. Obviously, it needs to be thoroughly communicated to all concerned personnel. And that is three separate groups: the sales personnel themselves, their managers, and the staff who is charged with its administration. The form of communication will be different, since each group has to understand it in a slightly different way. The sales force has a special interest in the new plan, it’s called “WIIFM”- WHAT’S IN IT FOR ME.
Since installing a new plan is analogous to changing the engines on a plane flying at 30,000 feet, there are a number of transitional or phase-in issues that have to be addressed, to avoid turmoil and demotivation among the sales personnel. These could include running parallel systems, grandfathering some sales activities, and other related issues. Clearly, the administrative staff needs to understand the mechanics of the plan and have all of the necessary tools for handling the administrative issues they will encounter. Again, the devil is in the details.
Step 6 - Monitoring and Corrective Action: The proverbial “rubber meets the road” when the new plan is rolled out. Is the plan effective at focusing the sales force’s attention on the desired results? Does it provide the motivation necessary to achieve those objectives? If the results don’t match up with the expectations, the company needs to examine why not, and take remedial action. This is an on-going process that must be carried out on a timely and continuous basis. Rather than trashing the plan, it may need to be tweaked, in order to place more emphasis on the desired results, and the plan should have the inherent flexibility to accomplish this without major adjustment. Why do sales compensation plans fail? CRI recently conducted a survey to determine what issues companies were having with their sales compensation plans. Interestingly, the results of this study reinforced the findings of many pr
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