covering all the bases. launching your plan design plan in private (but not in secret) use flexible...

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