Communicating New Sales Compensation Plan to Team
The new sales compensation program has been researched, cost modeled, and is ready for roll out. So what’s the process? Send out an email describing the new plan and consider it done? Cross your fingers that sales managers will answers questions for their reps?
Don’t assume that because the people who designed the new plan understand it, that anyone else will. Real understanding takes days, weeks, or sometimes months. Put yourself in the shoes of the sales organization, concerned with their livelihood and any possible disruption, and develop your change plan to drive the strategy with the sales team in mind. When making your next change, consider the following six steps:
- Start strong. Conduct your due diligence to make sure the program is bullet-proof and ready to go.
- Craft the change story. Be honest about the reasons for the change, and develop a clear message around the C-level goals.
- See the organization’s view. Expect some resistance, and identify who those resisters might be so you can get them on board.
- Get the change forecast. Know your organization’s readiness for the change and your team’s resolve to see it through.
- Leverage the learning modes. Use multiple methods, including those that serve visual, audio, and other learning types to communicate with the organization.
- Follow the process. Begin communication early and follow your approach until well after introduction.
On Day One, announce the new plan with strategic themes and reinforce at the team level. Make the plan announcement within the context of the overall sales strategy. This is the first formal communication of the change story. Translate the story to the team through sales management in concert with the strategic announcement. Sales management should then work with the team in break-out groups that get into the details of the program, answer questions, and make sure that each member of the organization understands the new program.
In the first 14 days following the announcement, open the communications channels. To support the announcement, open up your support channels to capture the inevitable inbound questions and manage the flow of communications. These vehicles typically include an inbound voice hotline, a dedicated e-mail account, a company-operated blog, and social media presence. While some of these vehicles may seem non-traditional, it’s not uncommon for the sales organization to establish its own web and social media presence in response to a major change. It’s usually better for the company to move proactively in this direction than to reactively defend.
Thirty days after the announcement, test for understanding. No matter how well accepted the plan is during the announcement, don’t assume the whole organization understands it. Following the announcement, managers should work on a schedule to reach out to reps and confirm their understanding of the plan and their objectives.
Sixty days after the announcement, test for behavioral change. The first sign that the plan is beginning to work is a pattern of behaviors that are consistent with the objectives of the program. Test for these changes through direct coaching and observation by sales managers and through performance measurement through vehicles like the CRM system that track activities and steps in the sales process.
At the 90-day point, test for performance results under the new plan. Depending upon the length of the sales cycle, results may begin to show during the initial months or after the first quarter. With many implementations, the sales organization may actually experience a dip in performance after the introduction as it adjusts from any initial distractions and begins a new, consistent rhythm.
When making the change to your program, start early with socialization, craft the right story for your change environment, and stay sensitive to the organization while you work through your multi-mode communications process.
Join SMEI for a webinar on sales compensation strategy.
Photo Credit: Mathyas Kurmann
