Chapter 13. EVALUATING RESULTS UNDER A NEW SALES COMPENSATION PLAN

A large, well-known telecommunications company designed and implemented a new sales compensation plan to support its new customer-oriented field organization. As top managers described their experience with compensation plan design to us, it appeared that they had been very particular at every step in the process they used. It sounded like a model for a best-practices initiative. After two fiscal quarters of operating under the plan, however, the company was not reaching its business objectives. Concerned that it might have missed something in plan design or implementation, management ordered up a complete evaluation of the new plan. Virtually everything was analyzed over a period ...

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