Incentive Plan Communication
An often overlooked fact is that an imperfect plan that is well communicated is more effective than a perfect plan poorly communicated. If participants don’t understand how the plan works and how it links to their roles and the company’s objectives, motivational impact is seriously undermined.
The main elements of our incentive plan communication offering are:
An often overlooked fact is that an imperfect plan that is well communicated is more effective than a perfect plan poorly communicated. If participants don’t understand how the plan works and how it links to their roles and the company’s objectives, motivational impact is seriously undermined.
The main elements of our incentive plan communication offering are:
1. Developing a communication plan. A communication plan specifies the communication objectives, the key messages for each audience, a series of cascading communication events (which can be abbreviated or extensive), the media for delivery of the messages (I.e., voicemail, webinar, teleconference, stand-up presentation, workshop, one-on-ones), and the timing and accountability for implementing the communication plan.
2. Plan documents. Every incentive plan needs a polished, clear, and concise plan document. There are a variety of plan document formats and none is appropriate for every organization. Sometimes a brief 2-3 page document will suffice, but more detail is often helpful or required. We work with clients to develop clear and impactful plan documents that meet the needs of their organizations. Most plan documents should include:
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3. Communication presentations. A primary vehicle for plan communication is the presentation. We first develop an overall presentation, which is then modified to serve at different events such as:
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4. Incentive calculators. Nothing explains the mechanics of a new incentive plan as clearly and immediately as an incentive calculator: This is an Excel or web-based tool that sales people can use to calculate their earnings under actual or hypothetical sales performance scenarios. It can also serve as a useful management tool to motivate sales people.
Incentive calculators are particularly useful when plan mechanics have a degree of complexity that makes calculating incentives in one’s head or with a calculator difficult or impossible. This is usually the case with goal-based plans, and particularly those where performance is calculated on a year-to-date basis. While incentive calculators are not sales compensation administration software, some clients find that they are a cost-effective tool to calculate actual incentives, particularly if the number of incumbents is small. Because of our familiarity with the standard formulas that are used for incentive calculation, we are able to develop calculators more efficiently than they can be done in house. |