Situation
- Medical device/equipment company
- Successful in maintaining profitable share in core products
- Acquired smaller firms to enter new markets and leverage core account relationships
Challenges
- Existing commission-type plan posed little consequence for reps that choose to focus exclusively on core products, at the expense of new-product sales
- Disposable and rental products provided sales reps an ongoing earnings stream after the intial sale, though reps had no influence on usage after the initial sale
Actions
- Provided leadership with incentive plan options for both core and new, capital and disposable/rental products
- Performed aggregate cost modeling and individual salesperson impact analysis for each option
- Developed business rationale and key messages to promote the preferred option vetting and approval
- Facilitated regional sales leadership focus groups and plan rollout sessions
Results
- Developed and thoroughly tested multiple design options in extremely compressed period (24-7 working model)
- Provided an approach that clearly aligns incentive pay with the company’s new-product penetration objectives
- Enabled a focused and transparent communication and change-management initiative
Copyright 2011 NewSigma, LLC: Sales Compensation Consultants. All Rights Reserved
Incentive Compensation Case Study: Medical Device Manufacturer
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