A manufacturing company with an established product in an established market wanted to expand its product lines and its markets. To do so it needed to change the focus of the sales force from maintenance to growth.
Built an incentive pay plan designed to generate
increased gross revenues and net revenues. The incentive plan was
tied to growth, so it did not increase compensation costs as a
percentage of operating costs, and provided potential for the sales
force to more than double their income.
An increased overall focus on both growth and
profitability, and an increased effort by the sales force to develop
new customers and sell new product lines.