| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 3258.1 | explanation please | BBRDGE::LOVELL | � l'eau; c'est l'heure | Wed Jul 20 1994 18:43 | 7 |
| Desperately interested in this new sales comp plan but can't understand a
word of .0. Is there an electronic version on the net somewhere of
what has been proposed?
/Chris (DC)
... and what is "the LIST" ?
|
| 3258.2 | I can believe I read this!!!! | POBOX::CORSON | Higher, and a bit more to the right | Wed Jul 20 1994 20:39 | 20 |
|
Got a copy of the thing from Mr. Scott Roeth, but for all my
technical literacy, seem unable to get it from my A1 file to here.
What the thing does that most frosts me is this - it sets quarterly
budgets. This means, if you're a high performer like moi, your
management can level your earnings quarterly so you can never achieve
more than 100%-110% of an annual goal.
For example, you work a deal this quarter that you know will close
next quarter. Your boss also knows this and sets your next quarter
budget to reflect that sale. If it tanks, so do you. If you make it, so
what? You get paid at 100% annual performance. Your "at risk" money is
negligible. 60/40 or 80/20 - you only get comp'ed on that quarter. So
you can never achieve more than 25% over your "at risk" amount because
you can get re-budgeted at the end of a quarter.
This ain't a plan. In Chicago, you go to jail for doing this.
the Greyhawk
|
| 3258.3 | | POCUS::OHARA | Reverend Middleware | Wed Jul 20 1994 21:21 | 15 |
| >> Got a copy of the thing from Mr. Scott Roeth, but for all my
>> technical literacy, seem unable to get it from my A1 file to here.
Not to worry. Mods would delete it anyway unless you got explicit approval
from SR to post it here.
BTW, I didn't pick up on the potential for managing the quota to ensure
we poor sales dinks don't get too successful. Thanks for the insight.
Rev
PS - At least you account manglers out there know you'll be measured on
revenue. I'm a c/s product sales rep and I have NO CLUE how I'll be measured.
And, I'll bet a week's pay any measurement system put in place for us will be
MANUALLY managed (as it was this past FY).
|
| 3258.4 | | PARVAX::SCHUSTAK | The Few, The Proud...Digital! | Thu Jul 21 1994 09:20 | 12 |
| Greyhawks got it right. In end-user sales, _most_ of the projects I
pursue have very log cycle times (read 12 - 18 months from the client
perspective, usually 3 - 6 months when most Digital reps would become
aware of it, i.e. _after_ all the business/roi/funding issues have been
determined). The quarterly planning/budgeting will have two effects
(IMHO):
1- There will be little opportunity to "overachive"
-Or
2- Reps will try to keep lots of "secrets" from management
Point #2 really helps ops/logistics/mfg in the DRP/planning cycles,
doncha think?
|
| 3258.5 | Rename DEC100 (re .2?) | HOCUS::BOESCHEN | | Thu Jul 21 1994 09:52 | 3 |
| DEC "Quarter". You get to spend an afternoon or morning at a
Hotel/resort.
|
| 3258.6 | | POCUS::OHARA | Reverend Middleware | Thu Jul 21 1994 11:19 | 8 |
| >>DEC "Quarter". You get to spend an afternoon or morning at a
>> Hotel/resort.
....in downtown Newark, NJ!
Rev
|
| 3258.7 | | NYEM1::CRANE | | Thu Jul 21 1994 11:24 | 1 |
| ....and whats the matter with down town Newark, N.J. ?
|
| 3258.8 | | MNATUR::LISTON | CSP-PSC/E - When you need to deliver the very best! | Thu Jul 21 1994 11:56 | 5 |
|
RE: .7
It's too close to Elizabeth & Rahway :)
|
| 3258.9 | | NYEM1::CRANE | | Thu Jul 21 1994 12:03 | 1 |
| ....now I understand. :')
|
| 3258.10 | | POCUS::OHARA | Reverend Middleware | Thu Jul 21 1994 13:18 | 5 |
| Ray
Sorry, I omitted the smiley ;')
Rev
|
| 3258.11 | Keep It Simple | GRANPA::LSEARS | | Thu Jul 21 1994 19:23 | 15 |
| I'm not from sales, but I am truly amazed at the complexity of the
sales compensation system (i.e. requarterized budget, etc). Why not
make it fairly simple: A base salary that would vary based on whether
your a Sales Rep II or Sales Executive and than a commission on the
gross margin of the product you sell. Let Sales Managers have budgets
and perhaps have bonus programs during the year for people that achieve
certain targets for specific products or a Unit acheiving $XM in sales
for the quarter. The bottom line is let sales people make as much as
they can based on the profit of the sale. So who cares if a young turk
sales rep II makes more than a sales executive, if he is really
successful and agressive.
Just my 2 cents from someone in Digital Consulting
|
| 3258.12 | It would be nice... | POBOX::CORSON | Higher, and a bit more to the right | Thu Jul 21 1994 19:30 | 10 |
|
re: 11
That's what enquiring minds want to know...
Simple compensation plans yield incredible results.
the Greyhawk
|
| 3258.13 | | BBRDGE::LOVELL | � l'eau; c'est l'heure | Fri Jul 22 1994 04:27 | 22 |
|
A kind US salesperson forwarded the plan to me so that I can
at least have a chance to understand the CSD side of the house
as I contemplate th DC selling model issues ....
Some Questions ensue ;
1) What does "Plan Leverage" mean? i.e. when they say New Business
Leverage is 60/40 - what exactly does that mean?
2) What is (or was) the FY94 1-2-3 theme (ala quota incentive).
Quantitative details please.
3) The $ amounts mentioned for various achievments against Q1 goal - are
they paid in Q1? Or is this a nominal annual amount that will depend
on maintaining Q1 performance throughout the year.
Overall, I like the idea of an incentive scheme (having never ever seen one before
in Digital), but I agree with previous notes (Salespeople) that the quarterised
levelling is a disincentive to invest in the longer term strategic deals.
/Chris.
|
| 3258.14 | | BBRDGE::LOVELL | � l'eau; c'est l'heure | Fri Jul 22 1994 04:28 | 7 |
|
oh yeah, - one last question ....
Who has a copy of "the LIST"?
/Chris.
|
| 3258.15 | | POCUS::OHARA | Reverend Middleware | Fri Jul 22 1994 09:05 | 39 |
| Re: .13
1) What does "Plan Leverage" mean? i.e. when they say New Business
Leverage is 60/40 - what exactly does that mean?
It means thet DEC pays us 60% of our regular salary, and holds back the other
40%. We earn back that 40% as we achieve quota (paid as business is done
over the FY).
2) What is (or was) the FY94 1-2-3 theme (ala quota incentive).
Quantitative details please.
Depending on your perspective, it's either:
1-2-3 you're HISTORY or
1- earn some or all of the "leveraged" part of your income as you perform
during the year
2- make $2000 extra (last year) when you achieve 100%
3- earn bonus for being over 100% (formula based on salary and actual
performance against quota)
3) The $ amounts mentioned for various achievments against Q1 goal - are
they paid in Q1? Or is this a nominal annual amount that will depend
on maintaining Q1 performance throughout the year.
I believe these are based on Q1 performance only and will be paid either in Q1
or in early Q2.
Re: .14
We'll see this soon. Management has it, but I presume it will be adjusted
as we migrate from the current scheme to the SBU/ABU scheme over the next 6
months.
|
| 3258.16 | | WHOS01::BOWERS | Dave Bowers @WHO | Fri Jul 22 1994 13:06 | 10 |
| It has been my general experince that a sales compensation plan has two
major goals:
1. To convince the sales force that, if they really get out there and
SELL, they can get rich.
2. To provide management with enough loopholes that they don't EVER
have to pay commissions.
\dave :^)
|
| 3258.17 | RE16 | AIMHI::SEIFERT | | Fri Jul 22 1994 14:13 | 3 |
| RE.16
BINGO!
|
| 3258.18 | new plan = scavenger hunt... | SWAM2::GOLDMAN_MA | Blondes have more Brains! | Fri Jul 22 1994 14:42 | 20 |
| I'm not even a "real" seller, more like sales support, and with MCS at
that, but the thing that frosts me about this plan is that bit about
the product-specific bonuses, i.e., get x$$ for every 2100 you sell for
*this quarter*. Okay, so Joe Salesrep runs around pushing 2100's on
every Tom, Dick and Harry in his customer base in Q1. But, let's
imagine another backlong like Q3's. So, all they have to do is
*un*-target the 2100 (take it off the bonus list), and Joe Salesrep,
essentially, gets ripped off for $1K x the number of 2100's on backlog.
I agree with the noters (including the famous Greyhawk) saying base +
commission on gross margin. What a novel concept -- metrics that
support the real goal of the company...to *make a profit!!!*, and even
support that goal in such a way as to make worth the sales rep's
effort.
Sigh. We'll get it right one of these years. Of course, by then,
there may not be any good sales reps left, all of them having moved on
to "greener pastures".
M.
|
| 3258.19 | You all get the picture... | POBOX::CORSON | Higher, and a bit more to the right | Sat Jul 23 1994 13:00 | 18 |
|
That is the saddest part, Ms. Goldman; the best reps do move on.
Really good salespeople are much more delicate than many of you can
believe. They are good because they are consumed by performance. It is
their performance that gives them self-satisfaction. Kind of like a
world-class athlete - the goal is always in front of them. No matter
how good their last performance, they know they can do better. And they
keep working at being "THE BEST", which is a mental state, not a
physical one.
I figure Digital has just one more month before the exodus begins.
If it is the SLT's focus to get sales people to quit, then we actually
have the dumbest management in the world today. Only the best and
brightest will leave voluntarily. The rest you have to throw out.
I hope BP and Enrico baby are not that stupid. Time is slipping away
and time will tell.
the Greyhawk
|