Covering All the Bases

Launching Your Plan Design plan in private (but not in secret) use flexible rules plan crediting rules use true-ups have a transition component communicate intelligently

Plan in Private keep the planning private while you consider alternatives avoid secrecy – acknowledge planning manage the rumor mill try to involve the opinion leaders

Use Flexible Rules remember the critical objects avoid rigid mathematics work the outliers prepare for course corrections (schedule a revision point)

Plan Crediting Rules what – exactly – carries incentives what does NOT qualify timing and time-frames

Use True-Ups WayPoint 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 company common technique in high-end plans

Have a Transition Component remember the rules decide on a transition timeframe develop a fair transition mechanism allow flexibility stick to the plan

Communicate! document the plan: rates / calculations crediting rules timing transition acknowledge rumors communicate plan objectives provide plan to the reps – have them sign

Common Failure Modes not planning for outliers inadequate transition failing to set expectations inadequate communication not working to get buy-in chickening out

Five Principles of a Good Plan pay for persuasion protect the best reps prevent runaway earnings operate within budget provide performance insurance