Manufacturing Today - Volume 18, Issue 2 - 10

Sales performance management
and sales compensation issues arise
when incentives aren't properly
aligned with C-level goals, sales people lose focus during long sales cycles
and performance measures aren't realistic. To ensure the sales organization is driving company success, sales
leaders should tackle these challenges
in the context of a sales performance
management plan.

K AYS ENGINEERING

B UY AMERICAN

S U P P LY C H A I N

A LFAB INC.

Challenge One: Translating
C-Level Goals to the
Front Line

L EGAL

T OOLS

S ALES PERFORMANCE
N EWS

COLUMN BY | MARK DONNOLO

Sales Shift

conquering compensation
challenges in manufacturing
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Manufacturing has undergone a radical transformation in the
past 20 years, with a significant increase in technology, machine efficiency and reliance on ERP software. As the industry
has shifted, so too have sales performance and sales compensation requirements.
10

manufacturing-today.com VOLUME 18, ISSUE 2

C-level goals are the focused business objectives of the company's top
leadership, used to set priorities for
the sales organization's strategy and
compensation plans. In manufacturing, strategic goals include revenue
growth, profitability, asset utilization
and inventory management. The sales
incentive plan is the communications
device used to translate these goals to
the front-line sales representatives.
It's essential to have these metrics
accurately forecasted and communicated to balance demand through sales
with manufacturing capacity. Unlike
other industries, if sales outsells the
company's production ability, customer experience and product quality
can suffer.
An important principle of incentive plan design is to measure and
pay for what the plan participants
can control or influence while also
accounting for the needs of the business. A smart incentive plan will give
a sales representative a challenging
but achievable target and measurable
milestones. Typically, these performance measures include pipeline
development and closed deals for
new customers and retention, along
with cross-sell and upsell for current
customers. Often, depending on the


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Table of Contents for the Digital Edition of Manufacturing Today - Volume 18, Issue 2

Contents
Manufacturing Today - Volume 18, Issue 2 - Cover1
Manufacturing Today - Volume 18, Issue 2 - Cover2
Manufacturing Today - Volume 18, Issue 2 - 1
Manufacturing Today - Volume 18, Issue 2 - Contents
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