University of Minnesota - UMN Executive Leadership Insights
Game the Plan
Book

Game the Plan

Every Sales Rep’s Dream; Every CFO’s Nightmare

Christopher W. Cabrera
River Grove Books, 2014
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Editorial Rating

8

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  • Applicable

Recommendation

Sales managers plan, develop and implement compensation plans ripe with incentives to motivate their sales teams. But five minutes after the newest compensation program debuts, salespeople “game” it to maximize their income. As they do, they’re finding and using the incentive program’s design flaws. That works for them, and now you can make sure it works for your sales targets. With the right incentive plans, salespeople earn maximum pay when they sell at their peak. Sales performance expert Christopher W. Cabrera explains how to use empirical data to develop efficient, effective incentive compensation plans. Even though he promotes his company’s software in every chapter, he still provides an outstanding resource. getAbstract recommends his insights and strategies to executives and managers who want to design incentive compensation plans that lead to top sales performance.

Summary

“Gaming” Your Incentive Compensation Plan

“Determining how to use incentives to motivate sales reps has always been on the top of management’s list and it’s always been a difficult task.” Executives worry that salespeople will “game” their incentive compensation plans – that is, search for loopholes to maximize their income. Employees always try to earn the most they can within the confines of any incentive program. But maximizing sales reps’ income also should maximize the company’s sales and profits. If your incentive plan doesn’t have that result, you should reconsider its design.

Implement robust compensation programs and hope that your employees will game them. When they do, they’re working to attain goals that directly benefit your company and maximize its returns – and that boosts their incomes as well. This is a win-win situation. Your incentive plan promotes the behavior you want from your employees as they make extra money. However, do not rely on money as the sole incentive as you plan your compensation program. Do your research and build up a deep understanding of your employees and what motivates them. Make sure your compensation plan rewards only...

About the Author

Sales performance management expert Christopher W. Cabrera is the founder and CEO of Xactly Corporation.

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