Creating a Global Sales Compensation Framework

Overview : Designing a global sales compensation framework requires the involvement of the right people, with clear objectives regarding the ways the sales organization is expected to support the market strategy of the business. Those designing the framework are then ready to consider the key dimensions of a sales compensation plans and decide for each dimension if a firm standard is needed, if general guidance would be more appropriate, or if the framework should be "silent" allowing full local control.

Once the framework is established, it must then be applied to each sales team globally, interpreting the framework to create specific plans for each sales role on each sales team.

Why should you attend: Global businesses with global sales teams struggle with sales compensation plan design, challenged to balance the need for global standards with the need for flexibility to accommodate local differences in sales roles, market practices, and priorities. Leaving the local management to create their own sales compensation plans means that centralized plan governance, administration and analysis will not be practical. Standardizing on a single set of plans world-wide means that the plans will not be a just-right fit for each sales role and market.

Areas Covered in the Session:
Establishing goals for the sales compensation plans across the business
Involving the right people in designing the framework
Two sets of sample objectives
Profiling core selling roles
Determining the framework guidance for key dimensions of the sales compensation plans
Pay level vs. market
Pay mix and leverage
Incentive measures
Performance ranges
Incentive form and mechanics
Measurement period
Sales credit and payment triggers
Payout frequency
Additional dimensions that might be included
Sample sales compensation framework

Who Will Benefit:
HR Generalists supporting sales teams
Compensation Managers
Sales Leaders
Finance Leaders

Donya Rose is Managing Principal of The Cygnal Group, located in Chapel Hill, North Carolina. She has over twenty-five years of experience in leading the design and implementation of systems and processes to ensure alignment of business results with top business priorities.

Prior to founding The Cygnal Group, Donya was a consultant in Towers Perrin’s Sales Effectiveness Practice. Donya’s recent larger clients for whom she has led compensation design efforts include Red Hat Software, Comcast Business Services, Elster Solutions, and Novartis. In addition, Donya regularly assists smaller companies and startups with sales compensation plan design as they launch their sales teams and move through the early stages of growing their top line.

Donya’s passion is practical value-creating compensation plan design supported by thorough modeling to anticipate effects of proposed plans on individuals and the company. Because clients generally choose to stay engaged with The Cygnal Group for years, Donya has had a chance to learn which plan design elements often recommended by consultants are most likely to confuse employees and/or confound plan administrators. As a result, she focuses on simple, clear designs with direct links to strategically important business results.

Donya holds a Bachelor of Science in Mathematics from Davidson College, and a Master of Science in Operations Research and Systems Analysis from the University of North Carolina at Chapel Hill. She is a WorldatWork Certified Sales Compensation Professional (CSCP).