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Opportunities in Chaos
January 2010 |
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As we're all beginning to execute ourplans for 2010 - we know one thing for sure... It
will be a better year than 2009.
The economy is
showing signs of a turnaround, and while the crisisisn't over yet most of us have moved on and are focused
on what we need to do to grow our business. We
know you have a plan.
And we bet it's a good
one.
But there's one thing you need to think
about if you want that plan to work the way you hope it
will...
Is chaos going to get in your way?
No matter how good your plan is, no matter how
solid your business model is, if your systems aren't
strong, your business isn't going to respond the way you
need it to.
We're talking about your
compensation systems in particular.
If yourbusiness is like most, you have an official compensation
plan.
Maybe you have more than one, but there's
still a system for compensating your sales force, and it
supports your business model.
Or, it was
originally designed to support your business model.
But if your business is like most, it's notas
water-tight as it was when you designed it. You
made exceptions to keep your top people. You made
exceptions to reward loyalty. You made exceptions when
you really wanted to recruit someone.
If
exceptions are pervasive through your company, it'spossible that the way you are compensating people bears
little relation to what you intended. And just likeif
you drill holes in a boat, those exceptions make itharder to steer your business in the direction you want.
So how bad is it?
We can tell you.
We use what we call a Chaos Chart to compare
what you intended to pay to your sales force with what
you actually paid.
We
start by identifying the intended payout at each GCI
level. We create a line by connecting the dots to show
this level across the chart.
Then we enter a red
dot showing what each sales force member was actually
paid last year.
If the dots are close to the
line, your company is in good shape: Your systems are
working and people are being paid according to yourbusiness model.
If your dots are not liningup
and in fact are spread across the chart, you're notpaying people according to your plan. Your compensation
systems are not working the way you intended them to.
Curious about how your company looks?
Until February 28, 2010, we're offeringa
Chaos Chart Analysis for just $300.
You need to
send us your official compensation plan(s) plus actual
payout for each member of your sales force. We'll
produce a Chaos Chart for your business and presentthe
results to you.
You'll gain a lot of insight
into what's happening at your company - and a chartyou
can use in management meetings to illustrate the problem
to everyone.
Email at chaos@CompensationMaster.com
or call +1 704-541-9695 to request your Chaos Chart.
~~~~~~~~~~~~~~~ Coming up in the next
issue: More Recruiting
Tips
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| DID YOU
KNOW? |
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Chaos
charts are particularly valuable in mergers andacquisitions. If your company has acquired or will be
acquiring other firms, see how their results line up on
a Chaos Chart. It will be helpful in recognizing which
systems and parts of the business plan failed as you
interview management and sales force members.
Read more about Chaos Charts in Real Trends:
How Close Are You to
Chaos?
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| NEWS FROM
COMPENSATIONMASTER |
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Want to hear
what's new?
We are attending the following
conferences in the next couple months - stop by ourbooth to find out if some of our new offerings might be
right for your business.
Prudential Convention
March 7-9, 2010 Austin, TX
Leading Real
Estate Companies of the World March 9-11, 2010
Las Vegas, NV
Sotheby's Global April
12-14, 2010 San Diego, CA
NAR MidYear
May 12-14, 2010 Washington, DC
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Comments orSuggestions? Send them to e-letter@CompensationMaster.com
or contact us at:
CompensationMaster LLC
10801 Johnston Road, Suite 208 Charlotte, NC
28226 USA Phone +1 704-541-9695 +1 877-319-3300
Fax +1 704-541-0565 E-mail e-sales@CompensationMaster.com
CompensationMaster
Corporation 2 Hobin Street Ottawa, Ontario K2S
1C4 Canada Phone +1 866-790-2600 Fax +1
704-731-0063 E-mail e-sales@CompensationMaster.com
CompensationMaster
Oceania Pty Ltd Level 6 69 Reservoir Street Surry Hills, Sydney, NSW Australia 2010
Phone +61 405 350 774 E-mail oceania@CompensationMaster.com
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