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Overcoming 5 common mistakes
with sales incentive systems
Not ensuring that
Sales and Finance
are aligned
COMMON MISTAKE
#
Sales and Finance have different plans and
goals for the sales compensation system.
Sales Finance
We need to
increase reve...
Address the natural tensions between
the Sales and Finance teams.
Tip
Leaders in each
department must openly
discuss their...
Work with both Sales and Finance
teams to design a plan and system
that work overall.
Tip
Finance
Sales
compensation
Plan ...
Invest in technology. It’s a win–win
situation for both Finance and
Sales teams.
Tip
of respondents using an
incentive com...
Download the white paper Conversations
on incentive compensation: The changing
role of finance in pay for performance.
 R...
Discover additional IBM sales
performance management resources.
http://ibm.co/SPM
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5 common mistakes with sales incentive systems: Not ensuring that Sales and Finance are aligned

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What are the most common mistakes in implementing sales performance management systems? Common mistake #2: Not ensuring that sales and finance teams are aligned. Nonalignment of the naturally conflicting priorities between sales and finance can have critical long-term consequences for an organization’s overall sales performance and growth if they are not addressed in the implementation stage of an SPM solution. Overcome SPM implementation mistakes by learning more about incentive compensation: http://ibm.co/incentivecompensation. Then explore IBM Sales Performance Management solutions and resources on our comprehensive webpage: http://ibm.co/spm.

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5 common mistakes with sales incentive systems: Not ensuring that Sales and Finance are aligned

  1. Overcoming 5 common mistakes with sales incentive systems
  2. Not ensuring that Sales and Finance are aligned COMMON MISTAKE #
  3. Sales and Finance have different plans and goals for the sales compensation system. Sales Finance We need to increase revenue! Simple and clear plans are more effective in the field. Admin tasks take away from time with clients. We need more analytics. Decrease cycle times! Reduce errors! We need to improve our margins. Sophisticated and complex plans drive profitable behavior. We need to reduce IT and admin costs. There should be more self-service in Sales. More regulation! Faster information!
  4. Address the natural tensions between the Sales and Finance teams. Tip Leaders in each department must openly discuss their challenges, needs and environments. Find a compromise that communicates goals, expectations and timeframes. Use Finance’s experience to help in analytics, reporting and compliance.
  5. Work with both Sales and Finance teams to design a plan and system that work overall. Tip Finance Sales compensation Plan and system Sales Unify the Sales and Finance departments
  6. Invest in technology. It’s a win–win situation for both Finance and Sales teams. Tip of respondents using an incentive compensation system say that it has “substantially contributed to an effective sales incentive system.” CFO Research Study
  7. Download the white paper Conversations on incentive compensation: The changing role of finance in pay for performance.  Reasons for the tension between Sales and Finance  Ideas for bridging the gap between Sales and Finance  Benefits you can expect as your sales compensation strategy successfully evolves
  8. Discover additional IBM sales performance management resources. http://ibm.co/SPM

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