FEDA News & Views

May/June 2017

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May/June 2017 29 review progress. There is nothing like a deadline to instill focus, discipline and create a sense of immediacy. Plan, act, and measure the results. In the near term, the results likely won't be measured by the income statement but by the fact that a meeting occurred or an appointment was made. In the medium term, targeting opportunities is one of the best ways to maintain or grow overall revenues. Ensure Incentive Structures are in Alignment To reinforce the importance of the initiatives derived from the process outlined thus far, it is a good idea to consider the structure of the sales forces' pay plan. Based on the outcome of the steps, it is likely that fewer outside sales territories will exist and accounts will have been absorbed by the remain- ing sales reps. Inside sales may have greater responsibilities than before (e.g., making calls to accounts), and sales reps are likely to have action plans for growth with a handful of target accounts. Consideration should be given to ensuring that incentives are aligned with these changes. Structuring bonuses or com- mission rates to place a premium on target accounts is one possibility. Moving from a commission program to a salary and bonus program to account for a signifi cant shifting of accounts is another. Providing incentives to inside sales for retaining and Aligning Your Selling continued growing business for accounts they are assigned would also be worth some thought. At the end of the day, the No. 1 thing is to ensure that "A" players earn incomes necessary to endure a downturn, as these individuals will be critical to capturing market share when conditions improve. Through the process outlined in this article, wholesale dis- tributors can tackle the daunting task of changing their selling effort to deal with today's economic situation. Reorganizing sales territories and roles, increasing sales productivity, and changing compensation programs are never easy. The silver lining is that when conditions improve, sales growth and prof- its are likely to be at levels above where they were historically because of these changes. About the Author Mike Emerson has been an Indian River Consulting Group partner for six years. He has worked with hundreds of dis- tributors and manufacturers of all sizes and his main focus areas include compensation design, strategy facilitation, market research, and data modeling and analysis. Emerson also has authored four books, published by NAW, includ- ing What's Your Plan? Smart Salesforce Compensation in Wholesale Distribution, and What's the Right Plan? Effective Sales Incentive Design for Wholesaler-Distributors. For more information, email him at memerson@ircg.com or call 321- 956-8617.

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