How can you handle sales compensation plan changes after a merger, acquisition, or reorganization?

1 Assess the current situation

Before you make any changes to your sales compensation plan, you need to understand the current situation of your sales force. How are they performing, motivated, and aligned with your business goals? How do they compare to the sales teams from the other organization? What are the similarities and differences in their compensation structures, quotas, incentives, and territories? You can use data, surveys, interviews, and focus groups to gather this information and identify any gaps, overlaps, or conflicts.

2 Communicate the vision and goals

One of the biggest challenges of sales compensation plan changes is to communicate them effectively to your sales force. You need to explain the rationale, vision, and goals behind the changes, and how they will benefit the salespeople and the organization. You also need to address any concerns, questions, or objections that may arise, and provide clear and consistent information throughout the process. You can use various channels, such as emails, webinars, meetings, and newsletters, to communicate the changes and engage your sales force.

3 Design the new plan

Once you have assessed the current situation and communicated the vision and goals, you can design the new sales compensation plan that aligns with your organizational change. You need to consider several factors, such as the market, the product, the customer, the sales cycle, and the sales roles. You also need to balance the needs and expectations of your sales force with the financial and strategic objectives of your organization. You can use best practices, benchmarks, and tools to design a fair, simple, and effective plan that motivates and rewards your sales force.

4 Implement the new plan

After you have designed the new sales compensation plan, you need to implement it smoothly and efficiently. You need to ensure that your sales force understands the new plan, how it works, and how it affects their pay and performance. You also need to provide them with the necessary training, coaching, and support to help them adjust to the new plan and succeed. You can use dashboards, reports, and feedback mechanisms to monitor the implementation and measure the results.

5 Evaluate and adjust the new plan

Finally, you need to evaluate and adjust the new sales compensation plan as needed. You need to track the outcomes, impacts, and challenges of the new plan, and compare them with your expectations and goals. You also need to solicit feedback from your sales force and other stakeholders, and identify any issues or opportunities for improvement. You can use analytics, surveys, and reviews to evaluate and adjust the new plan and ensure that it remains relevant, effective, and aligned with your organizational change.