1. Covering All the Bases

2. 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

3. 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

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

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

6. 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

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

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

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

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