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Compensating the Sales Force: A Practical Guide to Designing Winning Sales Reward Programs, Second Edition (Marketing/Sales/Adv & Promo) Hardcover – July 8, 2010
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About the Author
David J. Cichelli (Scottsdale, AZ) is Senior Vice President of TheAlexander Group. He has been an instructor atseveral academic institutions, including ColumbiaUniversity. He is a frequent speaker at nationalassociation meetings and serves clients from avariety of industries, including financial services,high-tech, software, telecom, and health care.Cichelli authored WorldatWork’s one-day class onsales compensation.
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1. Determine eligibility
2. Align sales jobs with customers
3. Identify target total cash compensation
4. Determine the pay mix of the plan
5. Establish the pay leverage of the plan (multiplier of target incentive for those who reach the 90th percentile among peer performance)
6. Calculate range of pay opportunities
7. Identify and weigh performance measures (best practice: use no more than 3 output measure and avoid presales input measures.)
8. Set quotas and confirm quota difficulty distribution
9. Set performance expectations (see leverage - #5 above)
10. Assign pay expectations with performance expectations:
11. Calculate the incentive formula for each performance measure
12. Publish incentive formula
13. Measure performance and provide interpretations and adjustments as needed
14. Optimize performance through “day-to-day, hands-on committed sales supervision”
There were gems on every page (though the diamonds, rubies, and emeralds were not always grouped). While the writing technique of circling back with increasing depth made it a little harder to "extract" the author's framework, it make the book an engaging read despite its technical nature.
I have read many books on sales comp and would wholeheartedly state that the first book a person should purchase is "Compensating the Sales Force".
Most recent customer reviews
Worth every dollar.