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What Your CEO Needs to Know About Sales Compensation

In a sentence

A strategic playbook that teaches executives how to connect the corner office to the front line by aligning sales compensation with business strategy rather than treating it as a mere payout mechanism.

What Your CEO Needs to Know About Sales Compensation reframes sales compensation as one of the most powerful levers a company has to drive profitable growth—yet one that is chronically misunderstood and mismanaged. Drawing on 25 years of consulting with Fortune 1,000 companies, Mark Donnolo shows executives how to start not with commission rates but with the big strategic questions, using frameworks like the Revenue Roadmap, the Sales Compensation Diamond, the canine sales-role metaphors (Dobermans, Retrievers, Collies), and the Reverse Robin Hood Principle for differentiating top performers. Rich with real stories from top sales leaders at companies like Verizon, Salesforce, Autodesk, and ARAMARK, the book equips leaders to ask the right questions, avoid common measurement pitfalls, set equitable quotas, motivate managers, communicate change, and get involved at the right time in the right way. It promises a clear connection between strategy and the behaviors that actually drive revenue.

Tags

applied-statisticsstrategy

The model

A causal model in which strategic alignment and compensation design levers shape salesperson psychological states and selling behaviors, which in turn drive sales and business outcomes, moderated by quota quality and role fit.

Strategy-Compensation Alignmentdesign lever

The degree to which the sales compensation plan reflects the upstream Revenue Roadmap disciplines and C-Level Goals across customer, product, coverage, financial, and talent priorities.

Sales Role Definition and Fitdesign lever

The clarity and appropriateness of sales role definitions across the six dimensions and their alignment with revenue growth strategies and the right talent breed for each role.

Pay Mix Designdesign lever

The proportion of base salary to target incentive in target total compensation, calibrated to sales role and process to establish the level of risk and aggressiveness of selling behavior.

Upside Potential and Performance Differentiationdesign lever

The degree to which the plan provides significant upside for top performers and differentiates their pay from average and low performers, reflecting the Reverse Robin Hood Principle.

Performance Measure Qualitydesign lever

The extent to which the plan uses few, controllable, clearly aligned performance measures at the right level and frequency, avoiding conflicting or uncontrollable metrics.

Quota Setting Qualitydesign lever

The equity, market-basis, transparency, and field involvement of the quota setting process that determines whether goals are attainable and trusted by the sales organization.

Change Communication Effectivenesscontextual condition

The quality and timing of communication and change management surrounding plan design and rollout, including crafting the change story and using multiple learning modes.

C-Level Involvement Qualitycontextual condition

The degree to which executives provide strategic direction early, engage appropriately without over-managing details, and review, approve, and support the program.

Salesperson Motivation and Claritypsychological state

The psychological state of salespeople reflecting their understanding of the plan, their motivation toward the intended goals, and their sense of fair reward opportunity and line-of-sight to pay.

Aligned Selling Behaviorbehavioral pattern

The extent to which salespeople engage in the behaviors the strategy requires, such as consultative selling, cross-selling, new customer acquisition, or teaming, rather than transactional or misaligned actions.

Sales Talent Attraction and Retentionoutcome metric

The organization's ability to attract and retain the right sales talent, particularly top performers, driven by competitive and differentiated reward opportunity.

Profitable Revenue Growthoutcome metric

The ultimate business outcome of achieving revenue and profit growth targets consistent with company objectives through the sales organization's aligned efforts.

How they connect

  • strategy alignment influences salesperson motivation
  • pay mix design influences selling behavior alignment
  • role definition fit moderates selling behavior alignment
  • upside differentiation predicts talent retention
  • upside differentiation influences salesperson motivation
  • measure quality influences selling behavior alignment
  • measure quality influences salesperson motivation
  • quota quality moderates salesperson motivation
  • salesperson motivation predicts selling behavior alignment
  • selling behavior alignment predicts revenue growth
  • talent retention predicts revenue growth
  • change communication moderates salesperson motivation
  • clevel involvement influences strategy alignment
  • strategy alignment predicts revenue growth

The process

The book's overall operating playbook is a strategy-first approach to sales compensation. It mandates that before any discussion of commission rates or mechanics, an organization must first establish its strategic foundation using the 'Revenue Roadmap'. This involves gathering market and customer insights, defining a clear sales strategy, planning customer coverage, and identifying enablement needs. This strategic work is crystallized into five 'C-Level Goals'—Customer, Product, Coverage, Financial, and Talent—which serve as the guiding principles for all subsequent decisions. With the strategy set, the playbook moves to defining the specific sales roles required to execute it, using archetypes like 'Dobermans' (hunters), 'Retrievers' (farmers/penetrators), and 'Collies' (service/retention). Only then does the core process of designing the compensation program begin, following the systematic, 12-step 'Sales Compensation Diamond' framework. This ensures that every component of the plan, from pay mix and performance measures to quotas and governance, is a direct reflection of the pre-defined strategy and roles. The final phase of the playbook focuses on execution and people. It provides structured processes for setting equitable, opportunity-based quotas and for managing the human side of implementation through a deliberate change management and communication plan. The C-level's role is not to dictate the plan's details but to initiate the process with clear strategic direction, ask probing questions at key milestones, and champion the final program. This integrated, top-down, strategy-led methodology connects the corner office's objectives directly to the daily activities of the front-line sales team.

Develop the Revenue Roadmap and C-Level Goals

To align the sales organization and its compensation plan with the overall business strategy by creating a clear, top-down strategic framework before designing compensation.

When to use: Annually, or whenever a significant shift in business strategy occurs, before designing or redesigning the sales compensation program.

  1. Step 1Gather Insight.

    Entry: A need to define or refresh the sales strategy.

    Exit: A clear, data-backed understanding of the market and business performance is established.

    In: Customer feedback, Market research, Competitive analysis, Historical sales data · Out: Insight summary

  2. Step 2Define the Sales Strategy.

    Entry: Insight gathering is complete.

    Exit: A documented sales strategy is created.

    In: Insight summary · Out: Sales strategy document

  3. Step 3Plan Customer Coverage.

    Entry: Sales strategy is defined.

    Exit: A customer coverage model is designed.

    In: Sales strategy document · Out: Customer coverage model, Sales role definitions

  4. Step 4Identify Enablement Requirements.

    Entry: Customer coverage model is designed.

    Exit: A list of required enablement programs is created.

    In: Customer coverage model · Out: Enablement requirements

  5. Step 5Set C-Level Goals.

    Entry: All four layers of the Revenue Roadmap are complete.

    Exit: A clear, one-page summary of C-Level Goals is approved by leadership.

    In: Sales strategy document, Customer coverage model, Enablement requirements · Out: C-Level Goals document

Design and Evaluate the Sales Compensation Program (The Sales Compensation Diamond)

To systematically design or evaluate a sales compensation program that is strategically aligned, motivational, and financially sound, following a structured 12-step process.

When to use: After the Revenue Roadmap and C-Level Goals are established, typically on an annual cycle or when a new plan is needed.

  1. Step 1Determine Target Pay.

    Entry: C-Level Goals and sales roles are clearly defined.

    Exit: TTC for each role is established and documented.

    In: Sales role definitions, Market compensation data · Out: Target Total Compensation (TTC) levels

  2. Step 2Calibrate Pay Mix.

    Entry: TTC is established.

    Exit: Pay mix (e.g., 70/30, 50/50) is defined for each role.

    In: TTC levels, Sales role characteristics · Out: Defined pay mix for each role

  3. Step 3Create Upside Potential.

    Entry: Pay mix and target incentive are defined.

    Exit: Upside potential (e.g., 2x or 3x target incentive) is established.

    In: Target incentive levels · Out: Upside potential targets

  4. Step 4Establish Performance Thresholds.

    Entry: Pay structure is being developed.

    Exit: A performance threshold is defined for the plan.

    In: Sales role characteristics (e.g., annuity vs. new business) · Out: Performance threshold level

  5. Step 5Develop Measures and Priorities.

    Entry: C-Level Goals are defined.

    Exit: A prioritized list of 2-3 performance measures for each role is finalized.

    In: C-Level Goals · Out: Plan performance measures

  6. Step 6Define Levels and Timing.

    Entry: Performance measures are selected.

    Exit: Measurement levels and timing are defined for each measure.

    In: Plan performance measures, Sales cycle data · Out: Measurement framework

  7. Step 7Design Mechanics.

    Entry: Measures, levels, and timing are defined.

    Exit: Plan mechanics are designed and documented.

    In: Measurement framework · Out: Plan mechanics and formulas

  8. Step 8Align the Team.

    Entry: Draft plans for all roles are complete.

    Exit: An integrated set of plans that supports team collaboration is finalized.

    In: Draft compensation plans for all roles · Out: Aligned program design

  9. Step 9Set Objectives and Quotas.

    Entry: Company financial plan is set.

    Exit: Quotas are assigned to all sales reps.

    In: Company financial goals, Market opportunity data · Out: Individual sales quotas

  10. Step 10Institute the Governance Process.

    Entry: Plan design is finalized.

    Exit: A comprehensive governance document is created.

    In: Final plan design · Out: Governance policies

  11. Step 11Operate the Program.

    Entry: Plan design and governance are complete.

    Exit: The program is successfully launched and operational.

    In: Final plan documents, Communication plan · Out: Operational sales compensation program

  12. Step 12Evaluate the Program.

    Entry: The program is operational.

    Exit: Regular performance reports and an annual evaluation are completed.

    In: Sales performance data, Compensation payout data · Out: Program evaluation report

Set Equitable and Profitable Sales Quotas

To establish sales quotas that are perceived as fair, are based on market opportunity rather than just history, and align individual goals with the company's financial plan.

When to use: Annually, as part of the sales compensation design process (corresponds to Step 9 of the Sales Compensation Diamond).

  1. Step 1Form a cross-functional team and establish a transparent process.

    Entry: Corporate financial goals for the year are established.

    Exit: A quota-setting team and process timeline are in place.

    In: Corporate financial goals · Out: Quota-setting team charter

  2. Step 2Combine top-down goals with bottom-up input.

    Entry: The process has been initiated.

    Exit: Both top-down targets and bottom-up forecasts are collected.

    In: Corporate financial goals, Field sales forecasts, Account plans · Out: Reconciled top-down and bottom-up view

  3. Step 3Analyze market opportunity to move beyond history.

    Entry: Historical data and market data are available.

    Exit: A relative potential score for each territory is calculated.

    In: Historical sales data, Customer demographic data, Market data · Out: Territory potential analysis

  4. Step 4Balance market opportunity with sales capacity.

    Entry: Market opportunity has been assessed.

    Exit: A realistic view of what the sales team can achieve is established.

    In: Territory potential analysis, Sales activity data · Out: Sales capacity model

  5. Step 5Allocate quotas with a slight over-allocation.

    Entry: All inputs (top-down, bottom-up, opportunity, capacity) are complete.

    Exit: Final quotas are calculated for each sales rep.

    In: Reconciled company goal, Territory potential analysis · Out: Final individual sales quotas

  6. Step 6Communicate the rationale behind the quotas.

    Entry: Final quotas are ready for distribution.

    Exit: Sales team has received their quotas and understands the methodology.

    In: Final individual sales quotas, Quota methodology summary · Out: Increased sales team buy-in

Manage and Communicate Sales Compensation Plan Changes

To successfully implement a new sales compensation plan by managing the change process, ensuring clear understanding, and gaining buy-in from the sales organization.

When to use: During the final design and implementation phases of a new sales compensation program.

  1. Step 1Start Strong by preparing for launch.

    Entry: A draft of the new compensation plan is available.

    Exit: The plan is financially sound, has been vetted by key stakeholders, and is ready for finalization.

    In: Draft compensation plan, Sales performance data for modeling · Out: Financially-modeled and pressure-tested plan

  2. Step 2Craft the Change Story.

    Entry: The rationale for the plan change is clear.

    Exit: A consistent change story and key talking points are documented for all leaders.

    In: C-Level Goals · Out: Change story, Leadership talking points

  3. Step 3Assess organizational readiness and forecast the change.

    Entry: The scope of the change is understood.

    Exit: A change forecast (e.g., 'Smooth Sailing', 'Gale Winds') is created, and a resistance management plan is developed.

    In: Analysis of the new vs. old plan · Out: Change forecast, Resistance management plan

  4. Step 4Launch the program using multiple learning modes.

    Entry: The plan is finalized and communication materials are prepared.

    Exit: The new plan has been officially launched to the entire sales organization.

    In: Final plan documents, Change story, Communication materials · Out: Launched program

  5. Step 5Provide post-launch support and test for understanding.

    Entry: The program has been launched.

    Exit: Initial wave of questions has been handled and understanding is confirmed across the team.

    In: Inbound questions from the field · Out: FAQ document

  6. Step 6Monitor for behavior change and results.

    Entry: The plan has been operational for at least two months.

    Exit: The plan's impact on behavior and results is being actively measured.

    In: Sales activity data (CRM), Sales performance reports · Out: Quarterly plan effectiveness report

C-Level Engagement in Sales Compensation

To ensure the sales compensation program is aligned with top-level business strategy and has executive support, without the C-level getting bogged down in details or derailing the process.

When to use: Throughout the annual sales compensation review and design cycle.

  1. Step 1Provide Strategic Direction at the start of the process.

    Entry: The annual business planning cycle is underway.

    Exit: The design team has clear, documented strategic direction from the C-level.

    In: Corporate strategic plan · Out: C-Level Goals document

  2. Step 2Participate periodically in key review meetings.

    Entry: The design process is in progress.

    Exit: The C-level is informed of progress and has provided course-correction where needed without taking over the process.

    In: Status updates from the design team · Out: Continued alignment between design and strategy

  3. Step 3Ask strategic questions to guide the team.

    Entry: The design team presents plan options or drafts.

    Exit: The design team is challenged to think critically about the plan's strategic fit and potential impact.

    In: Draft compensation plan designs · Out: A more robust and strategically sound plan

  4. Step 4Review, approve, and support the final program.

    Entry: The final compensation program is ready for approval.

    Exit: The program is approved and has visible executive sponsorship.

    • Approve the plan for rollout
    • Send the plan back for revision

    In: Final compensation program proposal · Out: Approved sales compensation program, Executive leadership messages for rollout

A candidate measure

What Your CEO Needs to Know About Sales Compensation — derived measurement candidates

Strategy-Compensation Alignment

Percent of plan weight on strategic priorities; Number of measures conflicting with strategy

self-report suitability: medium

Sales Role Definition and Fit

Coverage gaps count; Number of dimensions per role

self-report suitability: medium

Pay Mix Design

Base salary % of TTC; Target incentive % of TTC

self-report suitability: high

Upside Potential and Performance Differentiation

Actual incentive / target incentive at 90th percentile; Payout at 10th percentile

self-report suitability: medium

Performance Measure Quality

Number of measures per plan; Minimum measure weight

self-report suitability: medium

Quota Setting Quality

Percent of reps at/above quota; R-squared of year-over-year attainment; Over-allocation percent

self-report suitability: medium

Change Communication Effectiveness

Understanding test scores at 30 days; Resistance incidence

self-report suitability: medium

C-Level Involvement Quality

Engagement points mapped to recommended pattern; Detail over-involvement incidents

self-report suitability: medium

Salesperson Motivation and Clarity

Plan clarity rating; Perceived fairness rating; Motivation index

self-report suitability: high

Aligned Selling Behavior

Product mix breadth per deal; Sales process step completion; Team deal collaboration count

self-report suitability: medium

Sales Talent Attraction and Retention

Regrettable attrition rate; Time-to-fill; Top-tier retention rate

self-report suitability: low

Profitable Revenue Growth

Revenue growth rate; Gross profit; Goal attainment; CAGR

self-report suitability: none

The story

The reader A CEO or senior executive who wants to drive profitable revenue growth by making sales compensation work strategically.

External problem

Sales compensation is misaligned with strategy, expensive, and fails to drive the right behaviors or reward the right people.

Internal problem

Executives feel frustrated and uncertain, sensing conflict and compromise between sales, finance, HR, and operations without knowing the right questions to ask.

Philosophical problem

Sales compensation is one of the largest expenses and most powerful growth levers a company has, so treating it as a mere payout tactic rather than a strategic tool is just plain wrong.

The plan

  1. Understand the Revenue Roadmap and align strategy before touching compensation.
  2. Set C-Level Goals across Customer, Product, Coverage, Financial, and Talent.
  3. Define sales roles and match pay mix to the behaviors needed.
  4. Differentiate top performers with upside and the Reverse Robin Hood Principle.
  5. Choose few, controllable performance measures and set market-based quotas.
  6. Motivate managers with a complete Sales Management Offer.
  7. Communicate and implement change with a structured process and right-timed C-level involvement.

Success

  • Compensation clearly reflects strategy and drives desired behaviors.
  • Top performers are the top earners and are retained.
  • The company hits its growth targets with a motivated, aligned sales force.
  • Executives ask the right questions and engage at the right times.

At stake

  • High performers leave while mediocre reps are overpaid.
  • Plans send confusing messages and drive the wrong behaviors.
  • The company misses growth targets and wastes tens or hundreds of millions on ineffective incentives.
  • Strategic misalignments persist and worsen company performance over time.

Chapter by chapter

  1. ch01Your Revenue Roadmap: Driving Your Sales Strategy with Sales Compensation

    This chapter articulates how effectively aligning sales compensation with sales strategy can drive revenue and facilitate organizational goals, offering a structured approach to designing a compelling compensation program.

  2. ch02Lapdogs, Dobermans, and Retrievers: Motivating the Breed that You Need

    To optimize team performance and drive revenue growth, organizations must align sales roles with specific revenue strategies, effectively categorizing sales roles as either Lapdogs, Dobermans, or Retrievers.

  3. ch03The Reverse Robin Hood Principle: Differentiating Top Performers

    This chapter explores how to balance compensation structures to incentivize top sales performers while ensuring equitable motivation across the team, posing crucial questions about pay mix and potential.

  4. ch04Performance Metrics: Measure Twice, Pay Once

    This chapter dissects the complexities of performance metrics, elucidating how measurement misalignment can undermine organizational goals and employee motivation.

  5. ch05Big Deals: Aligning and Motivating Strategic Account Sales

    This chapter explores the intricate dynamics of strategic account sales, emphasizing the alignment of sales efforts with customer decision-making processes and the motivational strategies necessary for effective selling in complex environments.

    • Strategic accounts require tailored approaches that consider unique decision-making processes, ensuring alignment in sales strategies.
    • Solution selling enhances customer relationships, shifting the focus from mere transactions to value creation.
    • Creative sales roles thrive when given autonomy; involving them in goal-setting increases commitment and performance.
    • Sales crediting balance is vital for measuring contributions in team-based selling environments and ensuring accountability.
  6. ch06A Quota Quandary: Setting Equitable and Profitable Sales Goals

    The chapter explores the complexity of setting sales quotas that are both equitable and profitable, emphasizing the balance between market opportunity and sales capacity.

    • Without a clear understanding of both market opportunities and the capabilities of the sales team, quotas can harm more than help.
    • Engaging your team in the quota-setting process cultivates ownership and accountability, leading to improved performance.
    • Quotas should be ambitious yet achievable, directly aligned with both current market conditions and the sales capacity.
    • Relying solely on historical data is a risk; evolving market dynamics demand a flexible approach to quota setting.
  7. ch07Managing Sales Management: Understanding Roles and Rewards

    Sales managers play a unique role that extends beyond traditional sales tasks; this chapter explores what distinguishes effective sales management and how to optimize motivation through structured reward systems.

    • Successful sales managers must be recognized as leaders with unique strategic roles rather than just the best salespeople.
    • Effective motivation for sales managers hinges on a blend of recognition, structured rewards, and clear career pathways.
    • A well-defined compensation structure should reflect both individual performance and team success.
    • Asking the right questions can illuminate what truly motivates your managers and how to best support their efforts.
  8. ch08Making Change: Communicating and Implementing the Sales Compensation Plan

    This chapter examines the strategic communication and implementation of a sales compensation plan, emphasizing the critical steps in change management to ensure alignment and buy-in from the sales team.

  9. ch09The Role of the C-Level: Getting Involved in the Right Way

    C-level executives must strategically engage in the sales compensation process to ensure alignment with broader business objectives, utilizing their authority to support effective program implementation.

    • C-level executives must not merely preside over compensation matters but actively shape them to align with business goals.
    • Asking the right questions can unlock a deeper understanding of how sales compensation impacts team performance.
    • Transparent communication from leadership regarding compensation structures fosters morale and motivates sales teams.
    • Proper executive involvement in compensation processes can lead to enhanced performance across sales channels.
  10. ch10p01Your Strategic Sales Compensation Report Card: Grading Your Plan and Taking Action (part 1/2)

    Sales compensation plans are crucial for driving performance but often fall short of their potential due to misalignment with business objectives and ineffective implementation.

    • Selling is a critical function that drives revenue, and effective compensation strategies are its lifeblood.
    • Sales compensation plans that lack clarity and alignment with business strategy not only demoralize top performers but can also lead to increased turnover.
    • Utilizing a grading system to assess compensation plans can reveal critical areas for improvement and ensure that organizational objectives are met.
    • Communication is key; executives must articulate the rationale behind compensation decisions to foster acceptance and motivate sales teams effectively.
  11. ch10p02Your Strategic Sales Compensation Report Card: Grading Your Plan and Taking Action (part 2/2)

    This chapter dissects how the structure of sales compensation plans influences sales behaviors, emphasizing the importance of effective pay mixes and upside potential to foster top performance within sales organizations.

  12. ch11Big Deals: Aligning and Motivating Strategic Account Sales

    The chapter examines the critical misalignments often present in strategic account sales processes, advocating for a structured approach that motivates sales teams to engage in meaningful collaboration for global accounts.

  13. ch12A Quota Quandary: Setting Equitable and Profitable Sales Goals

    High-performing sales organizations often face an ironic predicament: exceptional performance leads to inflated quotas that feel punitive rather than rewarding, creating distrust and disengagement. This chapter argues for a radically transparent, collaborative approach to quota-setting that fosters ownership and alignment between sales teams and leadership.

    • Quotas should not only reflect past performance but also consider future market opportunities if organizations want to maintain motivated sales teams.
    • The punitive nature of traditional quota-setting practices creates distrust and disengagement, leading to overall decreased performance within sales teams.
    • Involving sales representatives in the quota-setting process fosters a sense of ownership, significantly improving their performance and morale.
    • Poorly set quotas significantly impact compensation plans and ultimately the organization’s growth trajectory.
  14. ch13Managing Sales Management: Understanding Roles and Rewards

    This chapter explores the challenges and nuances of sales management roles, focusing on how organizations can attract high-performing salespeople into management while ensuring they succeed in leading teams effectively.

    • Effective sales management requires specific skills that differ from those of successful sales reps.
    • Organizations must construct a compelling Sales Management Offer to attract and retain top talent.
    • Most top salespeople are driven by performance recognition and achievement, not just compensation.
    • Coaching should be prioritized, yet it often falls by the wayside due to competing demands on a manager's time.
  15. ch14Making Change: Communicating and Implementing the Sales Compensation Plan

    This chapter illustrates the critical connection between effective change management and sales compensation strategies, arguing that successful implementation relies heavily on preemptive communication and organization-wide buy-in.

    • A comprehensive change management plan is essential for successfully implementing new sales compensation structures.
    • Effective communication and stakeholder engagement should begin before any plan design, not merely at implementation.
    • Organizations tend to underestimate the uncertainty and confusion that accompanies new compensation plans, leading to disengagement among the sales force.
    • Gathering feedback from opinion leaders and high-performing sales reps during the design process enhances buy-in and helps to identify potential pitfalls.
  16. ch15The Role of the C-Level: Getting Involved in the Right Way

    This chapter argues that C-level executives must engage strategically and appropriately in the sales compensation design process, balancing their involvement to enhance organizational effectiveness without stifling necessary creativity and agility.

    • Effective C-level involvement in the sales compensation process requires a delicate balance of oversight and trust in the design team.
    • A late-stage C-level engagement can lead to significant setbacks in the plan execution and credibility among sales teams.
    • Executives must ensure their participation aligns with both the strategic objectives and the timeline of the compensation design process.
    • Asking the right questions can significantly improve the quality of sales compensation plans and ensure they drive desired behaviors.
  17. ch16Your Strategic Sales Compensation Report Card: Grading Your Plan and Taking Action

    This chapter provides a structured framework for evaluating a sales compensation plan through self-assessment, aligning it with organizational goals, and implementing actionable improvements.

Questions this book answers

How should sales compensation be aligned with the company's overall strategy?
Which sales roles and behaviors does the business need, and how should they be compensated?
Are the highest-paid salespeople actually the top performers?
What performance measures truly drive the right behaviors without diluting the message?
How can quotas be set equitably and profitably?

Glossary

Strategy-Compensation Alignment
The extent to which the sales compensation plan is derived from and consistent with the company's strategy as captured in the Revenue Roadmap layers and C-Level Goals.
Sales Role Definition and Fit
The clarity and appropriateness of how sales roles are defined across six dimensions and matched to revenue growth strategies and talent breeds.
Pay Mix Design
The ratio of base salary to target incentive within target total compensation for each role, setting risk and behavioral aggressiveness.
Upside Potential and Performance Differentiation
The degree of incentive available above target for top performers and the spread of pay across performance levels reflecting the Reverse Robin Hood Principle.
Performance Measure Quality
The degree to which plan measures are few, controllable, aligned to strategy, and set at appropriate level and frequency.
Quota Setting Quality
The equity, market basis, transparency, and field involvement of the quota-setting process affecting attainability and trust.
Change Communication Effectiveness
The quality and timing of communication and change management for plan design and rollout.
C-Level Involvement Quality
The appropriateness of executive engagement in the compensation process across direction, review, and support without over-involvement in details.