Compensating New Sales Roles

by Colletti, Jerome A.; Fiss, Mary S.

• ISBN13: 9780814471067
• ISBN10: 0814471064
• Edition: 2nd
• Format: Hardcover
• Copyright: 2001-07-31
• Publisher: Amacom Books

Summary

"With the explosion in Internet sales, organizations are frantically transforming their sales departments, adding new roles and redefining existing positions, to capture a share of this lucrative new market. This second edition of the landmark Compensating New Sales Roles explains: * How to identify and establish the sales roles an organization needs to turn in double-digit growth on a continuous basis * How to design and implement a compensation plan that directs, motivates, and rewards employees who perform effectively--regardless of sales channels * How to compensate sales staffs in telesales and teleweb operations--the fastest growing fields of selling. Packed with updated tips, tools, and examples, along with a new focus on online selling opportunities, this is an essential guide for human resources/compensation professionals, business owners, and sales executives."

Author Biography

Jerome A. Colletti and Mary S. Fiss (Scottsdale, AZ) are partners in Colletti-Fiss, LLC, a management consulting firm that helps companies develop and implement compensation solutions for strategically important sales situations. They have provided advice to many Fortune 500 companies.

Table of Contents

List of Illustrations	xi
Foreword	xv
Preface	xvii
Acknowledgements	xxiii
Part 1: New Market Requirements	1	(76)
Why Your Company Requires New Sales Roles	3	(23)
How to Create New Sales Roles and ``Recharter'' Existing Jobs	5	(1)
New Sales Roles: The Key to Business Success	6	(2)
Six New Sales Roles That Improve Interaction with Customers	8	(4)
Transactions versus Relationships: How to Help Your Company Implement New Sales Roles	12	(2)
Three Key Elements of the Customer Relationship Management Model	14	(2)
Four Telltale Symptoms That a Company Needs New Sales Roles	16	(2)
How Your Company Can Benefit from Investing in New Sales Roles	18	(2)
Three Critical Compensation Challenges	20	(5)
Summing Up	25	(1)
Why Sales Compensation Plans Fail---and How Yours Can Succeed	26	(23)
Four Integral Parts of a Dynamic Sales Compensation Plan	27	(2)
How a New Sales Compensation Plan Can Help Improve Products, Service, and Cost Performance	29	(2)
Five Positive Outcomes of a Successful Sales Compensation Plan	31	(5)
Five Reasons Why Sales Compensation Plans Fail	36	(3)
Can You Fix a Failed Sales Compensation Plan?	39	(3)
How to Help Your Company Make the Transition from a Failed Plan to a New Plan	42	(5)
Summing Up	47	(2)
How to Adopt New Sales Roles to Win and Retain Satisfied Customers	49	(28)
Compensation Is the Caboose, Not the Engine	52	(3)
The Sales Strategy Matrix: An Essential Tool for Aligning Sales Jobs with Company Objectives	55	(3)
How Companies Deploy New Sales Roles	58	(2)
The Five W's for Creating New Sales Roles in Your Company	60	(2)
Using the Five W's to Get Results: A Case Example	62	(6)
Five Steps for Initiating Productive New Sales Roles	68	(6)
New Sales Roles in America's Best Sales Forces	74	(1)
Summing Up	75	(2)
Part 2: Designing Compensation Plans for New Sales Roles	77	(196)
A Blueprint for Linking Compensation to New Sales Roles	79	(20)
Sales Compensation: What It Is and What It Is Not	83	(3)
How to Link Compensation to New Sales Roles	86	(1)
Phase A: Clarify Sales Strategy	87	(4)
Phase B: Determine Financial Requirements	91	(2)
Phase C: Identify Performance Measures	93	(1)
Phase D: Develop Program Details	94	(1)
How to Create a Successful Sales Compensation Design Team	95	(2)
Summing Up	97	(2)
What to Expect and How to Measure Success in New Sales Roles	99	(36)
How Performance Measures and Job Expectations Work	104	(1)
Three Measurement Practices That Support Profitable Top-Line Growth	105	(3)
The Customer-Centric Performance Measurement Model: Three Indicators of Success	108	(3)
Four Performance Benchmarks for Evaluating Sales Excellence	111	(3)
How to Choose the Best Performance Measures for Your Company's New Sales Roles	114	(2)
Six Examples of How New Sales Roles Affect Performance Measurement	116	(5)
Setting Performance Objectives: What to Do and How to Do It	121	(3)
Setting Performance Expectations: What to Do and How to Do It	124	(3)
Two New Approaches for Measuring the Success of New Sales Roles	127	(3)
Three Performance Management Challenges and How to Deal with Them	130	(3)
Summing Up	133	(2)
Designing Compensation Plans for New Sales Roles	135	(37)
Eight Key Sales Compensation Terms and Definitions	136	(21)
How to Compensate New Sales Roles That Affect Existing Jobs	157	(8)
Compensating Newly Created Sales Jobs	165	(3)
New Approaches to Compensating Nonselling Team Members	168	(2)
Summing Up	170	(2)
Compensating Telechannel Jobs	172	(30)
Five Telechannel Applications That Are Critical to Sales and Service	174	(3)
Three Major Challenges When Implementing Telechannel Jobs	177	(3)
How to Clarify What Type of Telejob Your Company Needs	180	(2)
Designing Compensation Plans for Telechannel Jobs: Three High-Level Considerations	182	(5)
Compensating Telemarketing Jobs	187	(4)
Compensating Telesales Jobs	191	(4)
Compensating Customer Service Jobs	195	(2)
Compensating Technical Service Jobs	197	(1)
Compensating Field Sales and Teleteams	198	(1)
Using Contests and Recognition	199	(1)
Summing Up	200	(2)
Compensating Sales Support Staff	202	(15)
How Sales Support Jobs Are Critical to Effective Customer Interaction	202	(3)
Retaining Customers: The New Goal for Sales Support	205	(1)
When to Include Support Jobs in the Sales Compensation Plan	206	(1)
Compensating Presales Jobs	207	(4)
Compensating Postsales Jobs	211	(2)
How to Answer Four Tough Questions about Sales Support Compensation Plans	213	(2)
Summing Up	215	(2)
Compensating Sellers and Teams for Large Sales	217	(27)
The Challenge of Selling Effectively at the ``C'' Level	220	(2)
Tips on Defining a Large Sale	222	(1)
How to Organize Company Resources for Global Account Teams	223	(3)
Five Benefits of a Consistent Sales Process for Large Deal Selling	226	(2)
How to Develop Compensation Plans for Large Sales: Two Case Examples	228	(12)
Five Key Lessons for Successfully Selling Large Deals	240	(2)
Summing Up	242	(2)
Compensating Sales Managers and Team Leaders	244	(29)
Three Groups Affecting the Sales Manager's Role	245	(5)
Three Pivotal Sales Manager Roles	250	(2)
How Sales Managers Spend Their Time	252	(4)
How to Match Sales Manager Jobs with the Right Compensation Plans	256	(6)
Four Tough Issues that Come with Sales Manager Compensation Plans	262	(3)
How Team Leader and Sales Manager Jobs Differ	265	(4)
Two Incentive Plans for Compensating Team Leaders	269	(3)
Summing Up	272	(1)
Part 3: Implementing New Plans Successfully	273	(88)
Tackling Some of the More Challenging Design Issues	275	(25)
Challenging Issues: An Overview	275	(1)
Five ``Big Picture'' Questions Top Managers Ask about Sales Compensation	276	(9)
Six Tough Design Issues That Affect Compensation Plans	285	(12)
A Checklist of Other Design Issues You are Likely to Face	297	(2)
Summing Up	299	(1)
How to Introduce Compensation Plans for New Sales Roles	300	(24)
Three Hurdles to Implementing New Sales Compensation Plans	304	(3)
The Change Management Model: A Four-Step Process	307	(4)
Prepare to Launch the New Plan	311	(2)
Implement the New Sales Compensation Plan	313	(5)
Monitor Employee Reaction and Business Results	318	(2)
Recalibrate: Resolve Any Glitches Quickly	320	(1)
Summing Up	321	(3)
Evaluating Results under a New Sales Compensation Plan	324	(21)
Three Key Areas to Examine for Results	325	(3)
What Not to Evaluate	328	(2)
Preparing for the Evaluation Process	330	(1)
How to Conduct an Accurate Evaluation in Five Steps	331	(10)
How to Report the Results of an Evaluation	341	(2)
Recalibrating Again: Updating Your Plan for a New Year	343	(1)
Summing Up	344	(1)
Future Challenges	345	(16)
Three Guiding Principles to Help You Address Future Challenges	346	(2)
The Talent Challenge	348	(1)
The Sales Credit Challenge	349	(4)
The Effective Frontline Manager Challenge	353	(5)
Summing Up	358	(1)
Closing Comments	358	(3)
Appendix A: Glossary of Terms	361	(4)
Appendix B: Illustrative Formal Sales Compensation Plan Document	365	(14)
Appendix C: Sales Compensation Audit Checklist	379	(4)
Appendix D: Articles of Interest on Sales Compensation	383	(8)
Appendix E: Reward and Recognition Questionnaire	391	(6)
Notes	397	(4)
Index	401