Many sales organizations struggle to find the “right” formula of structure and compensation that will support their sales success. Constant change, however, can result in poor channel performance and failure to achieve required sales targets.
Auditing of your sales compensation plans identifies design elements which are working and should be kept and where changes are required to improve program effectiveness. The audit will also determine any deficiencies in how the roles are structured, process problems and data issues that must be resolved to optimize sales performance. The audit report provides a “blueprint” for short and longer-term improvement.
The Sales Compensation Plan Audit is a critical element to the ongoing optimization of the sales compensation plan, because it allows the organization to periodically evaluate their plans and to determine where they need to be changed in order to be more effective or to sustain a competitive advantage.
The end deliverable from an audit is a blueprint that tells an organization where they need to go, and what they need to get there.
To perform an audit or risk assessment, SRG uses a structured process and a series of analytical tools to assess all the elements of the design and its effectiveness.
Some of the key areas that we focus on are:
- Alignment with the company business goals and strategy,
- Contribution to tactical execution,
- Analysis of the compensation framework and design,
- Evaluation of the performance measures
- Creating focus or assessing the quality of the selling activities etc
- Communication and participant comprehension.
- Motivational impact of the sales comp plan
- Behavioral outcomes as well as the consistency of the relationship between performance and reward.
- Real Conversations, Actionable Insights
During the audit process, we look at an overall risk evaluation to see where are the risks and the opportunities in the current plan and where the company is today and where they need to be based on the input from executives.
Part of our audit process are interviews with company executives, everybody from the president down to the VPs, directors etc of sales marketing, HR, To ensure that we understand where the business is going.
Then we do a gap analysis, where are they today? Where do they need to be in three to five years? And what’s the gap between those two? Then from that gap, we look at what kinds of changes can be made in the short term and the longer term in order to help them get to where they need to be.