IC story: Less is more!

IC story: Less is more!

The “less is more” principle emphasizes that by removing unnecessary details, the essential elements stand out, leading to a more impactful result.

In the past, when designing our Incentive Compensation (IC) plan, we included all components and displayed results at the individual territory level. However, this made the design workbook quite complex and often overwhelming for users.

Recently, we adopted a new approach by creating a straightforward Excel sheet that simulates payouts for a single territory. This simplified tool allows users to experiment with different scenarios, making it easier to see, understand, and interpret the results.

Below is a snapshot of the IC plan with three components: Nation (30% weight), Region (20% weight), and Territory (50% weight). The Nation and Region are team components based on goal attainment, while the Territory component is based on the commission plan. Users can simulate three different goal/commission tiers and explore various goal and sales attainment scenarios for a territory.

"Follow" me for more such stories

Read past stories like above at https://lnkd.in/dJ3AeZkd