Commercial excellence

Pressure-test an incentive plan in an afternoon

A handful of checks you can run against last year's actuals with only the proposed plan and a spreadsheet.

Plans tend to be approved on the averages: total payout inside the envelope, expected attainment reasonable. The field experiences the distribution, and that is visible well before the cycle closes.

In an afternoon

  1. Plot the distribution, not the mean Run the proposed plan against last year's actuals and look at the shape of attainment. The tail carries most of the information.
  2. Count who cannot realistically get there How many territories land under 60% of goal even performing at last year's level? As a rule of thumb rather than a standard, more than about one in twenty is worth re-basing.
  3. Stress it against a downside Model access tightening or a competitor landing. It is a ten-minute scenario and it changes how the plan reads.
  4. Forecast appeal volume Appeals track goal fairness closely, so the number is predictable, which turns a recurring surprise into a staffing decision.
  5. Check the alignment age Anything older than about two years is carrying workload imbalance that will read as performance variation all year.

A flat percentage asks the best territory for the hardest increment and the weakest for the easiest. Re-basing to measured opportunity usually brings more territories into a fair attainment band, and the conversation with the field changes as a result.

A good share of appeals begin as an identity question. Resolving the customer master removes many of them before the plan is even discussed.

What the check does not cover: it tells you whether a goal is fair relative to opportunity, not whether it is achievable in absolute terms. Both are worth asking, and they usually have different owners.