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ESTIMATED TIME:   1 minute read

Compensation planning model better aligns partner sales team

A software firm's sales team structure and incentive model was out of date and led to a failure to recruit, manage, and drive the right partners.

An effective compensation plan encourages positive behaviors across your team, sets expectations and standards for compensation for all salespeople, and drives results to achieve overall team and organizational goals. That's why getting your organization's sales compensation right is crucial to your success. Here's how we helped our client build a robust partner planning and compensation model. 

The Challenge

  • Field resources stretched across too many channel partners
  • Programmatic efforts unable to scale with important channel enablement resources being directed to low performance.
  • Redundancy between roles created a cost of partner sales that was too high
  • Low partner satisfaction with confusion over different field roles
  • Internal compensation and channel incentives did not align with desired business outcomes
  • High level of urgency to make changes in-time for next fiscal year roll-out

The Solution

  • Redefined internal roles and compensation to create a cooperative, joint selling teams
  • Introduced governance process to secure executive agreement and align our client's management team
  • Introduced a new partner incentives framework to encourage partners to drive net new deals
  • Redefined channel manager from a focus on enablement to pipeline management
  • Defined new rules of engagement to document how inside sales and partners work together.
  • Conducted a training boot-camp to roll-out new role and compensation plan

The Result

  • Delivered against aggressive timeline to re-engineer and launch how partner sales are managed prior to the start of a new fiscal year.
  • High-level of buy-in across the firm's leadership and partners on proposed changes
  • Reduced channel/direct-sales conflict with clear rules of engagement
  • Lowered cost per sales dollar by streamlining compensation without damaging sales velocity
  • Renewed commitment to the channel with a new partner strategy and execution model