Covering All the Bases

Launching Your Plan Designplan in private (but not in secret)

use flexible rulesplan crediting rulesuse true-upshave a transition componentcommunicate intelligently

Plan in Privatekeep the planning private while you consider alternatives

avoid secrecy – acknowledge planning

manage the rumor milltry to involve the opinion leaders

Use Flexible Rulesremember the critical objectsavoid rigid mathematicswork the outliersprepare for course corrections

(schedule a revision point)

Plan Crediting Ruleswhat – exactly – carries incentives

what does NOT qualifytiming and time-frames

Use True-UpsWayPoint will use past performance until current numbers are known

true-up: periodic synchronization of incentive pay to actual results

fair for sales force and the companycommon technique in high-end plans

Have a Transition Componentremember the rulesdecide on a transition timeframedevelop a fair transition mechanism

allow flexibilitystick to the plan

Communicate!document the plan:

rates / calculationscrediting rulestimingtransition

acknowledge rumorscommunicate plan objectivesprovide plan to the reps – have them

sign

Common Failure Modesnot planning for outliersinadequate transitionfailing to set expectationsinadequate communicationnot working to get buy-inchickening out

Five Principles of a Good Planpay for persuasionprotect the best repsprevent runaway earningsoperate within budgetprovide performance insurance