So many incentive programs are designed based on the needs and wants (and compensation goals) of the guy or gal in charge.
They need to hit 110% of goal – so everyone is rewarded for 115% of goal (gotta add that fudge factor in so Clark Griswold can get that inground pool.)
But that’s just bad design.
Salespeople don’t CONTROL the goal attainment. No one controls outcomes.
We control behaviors that lead to outcomes.
Don’t use your balance sheet or any financial report as your goal setting tool.
Reward the behaviors you KNOW drive those outcomes.
Calls. Presentations. Target marketing. Pricing strategy. Effort.
Don’t reward final tallies. That is just the scorecard – not the process.
Reward the process.
Celebrate the scorecard.