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Profits are the lifeblood of a company. A profitable company can deliver on its commitment to create shareholder value, enable continued investment in innovation and business growth. Faced with global competitive pressure, demanding customers, and slower rates of top line growth particularly in North America, many finance organizations look to compensation planning and the role it plays in contributing to profit results. A well designed and managed sales compensation plan allows the office of the CFO to accurately develop more reliable forecasts and better map resources to changing business markets to maximize profits. This webinar provides guidance to the CFO to help determine the sales and financial metrics to use to better align sales compensation to a profitable revenue growth strategy.
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Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Achieving Growth and Profitability through Better Compensation Planning
• Understand the types of profit measures that should be considered and adopted in reference to the three common business goals associated with improvement in profitability
• See examples of the architecture of effective, profit-oriented incentive designs relative to three common business goals for jobs that typically are measured this way
• Learn about key decision criteria that are associated with profitability to determine if implementing these changes would be right for your company
Learning Objectives
After attending this event you will be able to:
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Welcome to Proformative
Proformative is the leading educational resource for corporate finance professionals.
A resource where corporate finance and related professionals advance in their careers through: • Uniquely valuable, online peer network
• On demand courses taught by peers and SMEs
• Valuable Features and Resources
Check it out at www.proformative.com
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Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Achieving Growth and Profitability through Better Compensation PlanningJerome A. Colletti, Managing Partner, Colletti-FissMary S. Fiss, Co-founder & Partner, Colletti-Fiss
Your Presenters
CF’s Business Focus
Help our clients increase sales force performance through effective use of sales compensation plans
Clients include many Fortune 500 companies and/or their divisions
Jerry Colletti
Managing Partner and Co-Founder Advisor to global sales leaders in select industries Designer of plans in over 20 industries affecting over one million sales
people and their managers Teacher/speaker – Columbia U. Exec Ed., Ohio University College of
Business, Conference Board, Selling Power, and WorldatWork, Author – four books, 100+ articles including HBR, Selling Power and
leading professional journals
Mary Fiss Partner and Co-Founder Designer of plans in technology, software, medical products,
biotech/life science, pharmaceuticals, business services and capital equipment industries
Frequent speaker at WorldatWork Leading expert in sales compensation plan Terms & Conditions Author – four books; 60 articles
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Challenge Faced by CSOsOne Company’s Experience
“It’s become clear that we need to revisit the traditional measures of success in our business.
We’re seeing margin erosion in certain parts of the business. If we continue to focus solely on orders, market share and revenue to define our performance, further erosion in business results will follow.
Selling value is the only way we will free ourselves from traditional price wars and defeat our purpose of developing trusted advisor relationships.
We need to move forward with methods, measures and systems to reward profitable selling.”
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Barriers to Profitable SellingWhat Research Shows*
* Sources: CF proprietary research; Vendavo, Winning at the Moment of Truth: How Sales Leaders Can Unlock Sustained Profitable Growth by Selling More Profitably on the Front Line
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33% Agree
Why So Low? In approximately 50% of situations, there is lack of
agreement about the cost efficiency of the sales model
In 20% of cases, there is lack of agreement about how to maximize profitability on a deal by deal basis; right tools not available
Three Common Business Goals Associated with Profitable Selling
Reduce discountin
g
Improve margins
Retain YOY revenue >
92%
Profitable revenue growth requires a sales force to…
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Four Factors That Impact Profitable Selling
Profitability
Product Line
Customer
Sales Process
Sales Effectiveness
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Aligning Business Goals with the Compensation Plan
We know what constitutes profitable business and we can direct sales people to that end
Value-added, solution oriented selling yields a higher ASP than selling “me-to” products
All sales are not “value added” solutions; sales people must sell differently to “economic buyers” and “strategic buyers”
Sales people are in the best position to demonstrate and negotiate value; investments in resources and tools are essential to their sales success
Beliefs proven and held by management…
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Business Profitability Goals and Measures: Evaluating the Opportunities
Key Analyses Description
Product line financial analysis
1) Are there significant differences in the gross margins of the products or product lines that the sales force sells?
2) Can the differences be measured and tracked?
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Thank you for your interest in this presentation. View the on-demand webinar or download the full
presentation at:www.Proformative.com
Achieving Growth and Profitability through Better Compensation Planning
