According to “The Survey of Sales Incentive Plan
Revisions 2009,” the revisions placed more emphasis on sales profitability
(35% in 2009 versus 22% in 2008). In addition, more organizations (35% in 2009
versus 25% in 2008) changed performance measures to place greater emphasis on
business development, winning new business, and selling new products.
Looking ahead to 2010, better sales profitability is a
major concern for 40% of organizations surveyed. Organizations said they will
design sales compensation plans to drive both improved business results in
top-line revenue as well as margin in 2010.
A majority of organizations are changing sales metrics to
improve the alignment between business strategy and sales execution.
The survey also found nearly half of organizations see a
need to decrease plan complexity and plan to do so by reducing performance
measures or simplifying payout formulae.