Worksheet · Sales Effectiveness Health Check
Rewrite the plan on one page and test it on last year
It prints on A4 with room to write.
A plan full of exceptions pays for the wrong things. This sheet writes the plan on one page with a hurdle, then runs last year's results through it. It builds the Competent step of the check:
The plan pays only when a business hurdle is met.
Step 1. The plan on a page
| Element | Our choice |
|---|---|
| What the plan is for, in one sentence | |
| Measure 1 and its weight | |
| Measure 2 and its weight | |
| Measure 3 and its weight, if needed | |
| Business hurdle: nothing pays below it | |
| Threshold, target and cap for each measure | |
| How often it pays | |
| Large one-off orders | |
| Long sales cycles and multi-year contracts | |
| Shared and referred deals | Use the crediting rules |
| e.g. Business hurdle | Company gross margin at 95% of budget |
Step 2. Run last year through it
| Rep | Paid under the old plan | Would be paid under the new plan | Difference | Why |
|---|---|---|---|---|
| Total |
| Test | Old plan | New plan |
|---|---|---|
| Total payout | ||
| Payout as a share of gross margin | ||
| Would it have paid in a year the business missed its hurdle? |
If the new plan pays the same in a bad year as in a good one, the hurdle is too low.
Step 3. Fix the change date
Change the plan at most once a year. The date for any change is: ____________.
Done when: the plan fits on one page, has three or fewer measures, and pays nothing below the business hurdle.
Adapted from our own sales incentives framework (Kearney era, 2001).
From the Sales Effectiveness Health Check. Your report links the sheet for each of its moves.