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Sales Performance Management: the Why?

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Worldwide Sales Leader, Sales Performance Management, IBM

Why? This is a question we subconsciously answer for most things we do: why do we spend hours reviewing email or sitting on conference calls? But if we take time to consciously reflect on the “Why” of our business activities, I predict it would alter our actions and probably predicate a re-prioritization of our actions.

Every time I speak with clients around the world, I challenge them to think about why they should engage in Sales Performance Management. Subconsciously, the answer is easy: organizations should engage in Sales Performance Management to pay people in a timely, accurate fashion to incentivize better performance. However, a more conscious analysis would see that proper alignment of results to corporate objectives through compensation helps organizations thrive. When compensation is easy to understand and accessible, organizational  culture shifts from inward to outward. Teams focus on engaging clients and prospects because they don’t have to spend time to understanding if they’re getting paid correctly. By introducing transparency in how one gets paid, employees have more time to sell and engage the market, have higher job satisfaction and remain with the firm for longer periods of time. A company’s most valuable resource is human capital. Maximizing human capital through retention and incentivizing the right behavior has an exponential effect on the bottom line.

Reading this free e-book Sales Performance Management for Dummies, for example, you will learn the detailed ROI of Sales Performance Management, such as:

  • Many companies lose 5 to 10 percent of their total sales, due to inefficient incentive and compensation plans.
  • Sales reps gain 1 extra day of work each month, in organizations with an enterprise Sales Performance Management solution, in terms of time saved that is otherwise spent handling compensation issues.

Employing a commercially developed Sales Performance Management application allows for the automation of variable compensation disbursement. In addition to the operational efficiency (and reduction of sleepless nights for your compensation administrator), Sales Performance Management provides clarity and insight. This awareness gives organizations the ability to drive the right behavior and critically assess corporate direction.

In sum, Sales Performance Management isn’t just operationalizing a finance process; it is integral to a company’s success. The contemporary business landscape has a lot of noise and frankly, focuses on external forces. I encourage you to take a minute and ponder – are you maximizing your internal assets? Are you leveraging your human capital? Are you asking Why?

Learn more how Sales Performance Management can help your organization grow.