Governance & Job Architecture

Effective & Efficient Sales Compensation Programs

Are You Getting the Most From Your Sales Compensation Program?

Sales compensation programs are mission-critical. However, if not managed appropriately, sales efforts depart from strategic goals, creating inefficiencies as costs soar and sales cycles elongate. When executed correctly, sales compensation programs bind strategy, efficiency and seller performance to maximize revenue growth, effectively manage costs and avoid excessive risk.

Is your sales compensation infrastructure, or lack thereof, limiting the effectiveness of your program? Sales compensation program management solutions include all foundational elements needed to effectively and efficiently design and implement sales compensation plans.

Alexander Group helps clients build a comprehensive sales compensation program that includes a clear job architecture, consistently applied principles and guideposts and a governance structure that provides oversight to the ongoing decisions and administration of all sales compensation activity.

Building a Comprehensive Sales Compensation Program

Alexander Group helps clients develop comprehensive sales compensation program management practices by defining each of the four keys to sales compensation success:

  1. Platform jobs: We start by implementing a framework for defining and grouping similar roles based on job content and deployment. This framework is the foundation for designing effective sales compensation plans by clarifying confusion caused by inconsistent job titles, unclear or varying job responsibilities and variability across regions, business units or teams.
  2. Sales compensation guiding principles and component guidelines: We work with you to develop governing rules and best practices for the sales compensation program to consistently steer all compensation design decisions. These guiding principles are critical to ensure the consistent application of design components, especially when executing a decentralized design process across different business units, geographies or teams.
  3. Role goalposts: Each company is unique and requires a set of values or ranges for each sales compensation plan component based on best practices and company needs. Goalposts create a mechanism to allow for flexibility in sales compensation plan designs while remaining within a consistent overarching framework. By incorporating goalposts into your sales compensation program, you empower your sales leaders to customize their team’s sales compensation plans to meet the needs of their unique team or customer base.
  4. Sales compensation process and governance: Finally, we work with you to create a detailed description of the internal processes, roles and responsibilities, and timing for end-to-end sales compensation program management. Ensuring a clear governance structure and procedures allow organizations to efficiently manage the annual design process, make decisions, and ensure timely and consistent administration of the plans.

As your organization grows, your sales compensation programs must evolve to meet your changing needs. Alexander Group works with you to make sure that your sales compensation program management practices help you achieve your revenue growth objectives while ensuring an efficient infrastructure that supports cost and risk management.

Learn more about Sales Compensation

See about how your sales organization can benefit from our expertise in sales compensation