Best Practice Report

Implementing A Sales Compensation Annual Cycle

February 23rd, 2021

Summary

Sales operations leaders can apply the flywheel effect, where every turn of the flywheel builds on earlier work and compounds efforts, to improve the annual design process for sales compensation programs. Adhering to a standard phased cycle creates momentum that builds with each phase, eventually resulting in a plan that’s performing at such a level that the same effort leads to a compounded impact. In this report, we define the four phases of the annual sales compensation cycle and the actions sales leaders must take in each phase to continually improve sales compensation program performance.

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