Tie the Plan to Strategy Before You Pick Measures
Explain how a sales compensation plan should translate strategy into a small, balanced set of controllable measures.
The move: design the signal before you design the payout. A compensation plan starts to fail when the team chooses measures by habit. New ARR, margin, renewal, logo count, pipeline creation, and product mix can all be valid, but only if they represent the strategy for that role. The Balanced Scorecard lens asks whether the measure set covers the business result, the customer promise, and the internal behavior that makes the result sustainable. Primary signal Choose one dominant measure that the seller can influence and that leadership truly wants more of. This is the measure the rep should remember without…
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