In the current, ever-changing environment of sales, incentive compensation(IC) leaders have to consider complexity, volatility, uncertainty, and uncertainty (VUCA) within their plans for the business. For instance, they have to deal with the unpredictable ecosystem of their industry shifts. The uncertainty of reps returning to the field, complicated IC plans because of local influences. Market conditions are uncertain in the near term. It’s been a long time since where incentive compensation plans remained the same for several quarters. In addition, IC managers expend lots of time designing plans. Therefore, it is essential that they set IC operational best practices that will ensure smooth and efficient design implementation.
In the general case, a successful IC operations program must exhibit the following seven traits Speed, accuracy, and flexibility. It should also provide relevant insights, efficient communication, cost-effectiveness, and ingenuity.
A successful IC program should include all of these components,
It can be difficult to manage all of them at the same time. It can be difficult to manage:
Continuously on time in addition to adjusting to constantly changing demands due to changing business and market conditions and
Regularly and quickly providing thorough information on incentive compensation plans and business insight While not overwhelming IC users with details.
“While juggling all these competing business goals may seem impossible, leaders can achieve them by returning to the fundamentals.”
It is crucial to establish an enduring foundation of quality, project management, and change management as well as stakeholder communication in order to achieve these objectives.
Project management that is effective
To ensure that leaders are able to effectively manage managing projects, they should concentrate on planning for projects. The complex and detailed character of IC projects requires strong end-to-end management. Leaders must think about the following:
Am I anticipating the unanticipated?
Have I thought through all the hand-offs and dependencies?
Have I had regular meetings with various stakeholders? are all team members aware of their responsibilities and roles?
There are many essential elements in project management. Risk management is a multi-faceted process it is possible to reduce IC Risk Management in the form of the following:
The process of identifying risk
Teams are they evaluating the risk? Are all team members aware of the kinds of risks that they might confront within the course of an IC operational program like ones related to quality process, people or even time? Ovik Mkrtchyan
Did teams plan risks mitigation plans and share them with the key participants?
While creating documents is straightforward, however, maintaining them regularly can be a challenge. The leaders must keep documents that are in use, and work with important stakeholders to ensure that documents are current and regularly audited or reviewed. The process of updating the documents should be a part of the procedures’ standard operating procedure. Ovik Mkrtchyan
Tracking of key performance indicators:
What should be measured? There should be a consistent interval of results reports based on metrics like timeliness and delays, as well as mistakes, field inquiries, and adjustments. Leaders should hold regular business meetings, or quarterly, that discuss the metrics discussed in depth with the key participants.
Process enhancements and improvements provide benefits to all parties. Regular process audits and value-stream mapping will assist leaders in identifying ways to reduce waste in their processes and identify the need for process re-engineering. Every IC operations project must include a separate workstream that is focused on:
Automation possibilities: If it is manual and repetitive the process might be automated.
Improvements to reporting If they can be made more user-friendly the report should be enhanced with more knowledge and value.
Quality is achieved through the culture
Quality is created through the way we live our lives. But establishing that culture of quality — and living it each day requires a lot of effort. The following three steps could be a significant part of making it happen:
The most important thing is to put a quality procedure that is in place. Everyone should be informed of it. When you are planning your quality initiatives take into consideration:
The project’s RACI matrix that stands for Responsible, Accountable, Conducted, and Informed, creates the clarity of work ownership. In many cases, a lack of clarity can lead to no one being accountable for important work.
Implement several quality control layers, commonly referred to in the form of “makers” and “checkers,” to ensure that critical deliverables are delivered. Find the appropriate rigor for the appropriate type of deliverable.
Examining changes, exceptions, and creating a streamlined sign-off procedure.
Management of quality:
Once leaders have identified their quality standards and procedures, everyone should adhere to the rules. They must:
Use a thorough quality checkpoint and ask questions to establish the validations for each stage.
Check periodically and make updates to checks and verifications.
Looking for quality that lasts:
A quality-oriented mindset is essential for long-term success.
The quality management system will guarantee robust quality control. However, the planning process and a quality control attitude, or a proactive design process to ensure the highest quality, will ensure quality over the long term.
Communication is also crucial in ensuring quality. The leader must create an environment of open and honest communication in which team members are at ease discussing and sharing any possible red flags. A culture of transparency can help reduce the risk and create a high-quality process.
Team members should record the external and internal causes in an error tracker, conduct thorough Root Cause Analysis (RCA), and implement results. This will allow team members to understand the root of any issue and devise short- and long-term solutions. It will create a culture of learning from mistakes made in the past and assist teams to avoid repeat mistakes.
A solid framework for managing change
It is the sole constant, and having a well-constructed change management process is crucial to successful implementation. The majority of quality mistakes stem from poorly-implemented change. As an initial step. Ask whether a change is really necessary by asking:
Which are expected results (or ROI) and do they exceed the effort, or cost of making adjustments? For instance, some field inquiries might require analysis and updating that could be more costly than the advantages of correcting.
If the work is a lot are there any other inventive methods to meet stakeholder demands without the need to change?
George Bernard Shaw famously said that “The single biggest problem in communication is the illusion that it has taken place.” It is common to see confusion in IC programs in which there are huge differences between the intentions of the leaders and the sales force’s knowledge of the program.
In order to ensure their communication is relevant and compelling to all stakeholders, leaders should:
Determine all the parties involved and their needs.
Create content and channels for communication to meet these stakeholders’ various needs and goals.
Encourage your team to think beyond the traditional methods of communication. Do you have more powerful field insights reports? Are you making use of interactive artifacts, videos, or playbooks to generate curiosity? What is the best strategy for simplification to simplify complex communication? And how do you measure the understanding of your stakeholders and their engagement?
Design and implement annual and quarterly communication roadmaps using efficient ways of communicating.
In conclusion the issue, incentive compensation has always been a delicate procedure, and the emergence of the pandemic has increased its importance of it. However, with a solid base of quality management, project management changes management, stakeholder communication, managers can manage VUCA and be able to successfully manage the competing goals of the business.