Global Software Company was concluding a total redesign of their sales organization to transition from team-based selling to account-based product specialization. All of the sales roles were redefined. New sales management and individual contributor roles were identified. Accounts were classified and assigned. All of the compensation plans supported sales teams thus requiring a total redesign. The organization transition was targeted for January 1st and there was concern that the “noise” from the anticipated changes would affect fourth quarter results.
We first developed a detailed project plan that identified project roles and responsibilities as well as necessary touch points that would involve the sales organization. Transitioning from team-based to individual rewards required an evaluation of the prior three years of sales history in order to identify and assign sales performance to individual roles.
Market analysis was performed in order to establish a Total Targeted Cash with mix and leverage for each selling role. A variety of commission-based sales incentive plans were developed along with sales bonus plans in order to continue to support the group culture. Finally, sales leadership rewards were designed and implemented to provide greater linkage to organization performance.
With the total redesign of the sales compensation plans, a significant effort was placed on the communications and implementation aspects of the project. We developed individual modeling tools for each sales role to allow the individual to play “What if” scenarios on their own. We returned at 6-month and year-end to analyze and evaluate the redesigned. Finally, small modifications were made in the plans for the next fiscal year.