Warning Signs

Published: November 1, 2001
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Warning Signs


Originally Published MX November/December
2001



ADVERTISING, DISTRIBUTION,
& SALES

Many signals of
potential alignment or incentive issues take the form of comments from sales
reps and medtech customers. Company leaders should be attuned to such remarks
that might indicate some realignment is necessary.

"How
am I going to win the sales contest if you take away my most valuable accounts?"
Such a quote is likely to come from a sales rep in a disproportionately
high-potential territory who is paid and measured on sales volume.



"Other reps are overpaid," or "I’m not making
enough money."
Comments like these from sales reps indicate that territories
in a heavily commissioned sales force may be out of balance.



"I’m working harder than anyone. I can’t possibly handle
more accounts."
This comment could come from a sales rep whose territory
is geographically too big. The rep is probably spending most of his or her time
traveling and little time selling. Conversely, under a market-share-based compensation


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