About this Presentation
Compensation Systems for Sales Professionals: are there alternatives for throughput world? Designing a compensation system for a sales organization is a strategic decision of a critical importance. An enquiry into most common systems, the bottom-line effects and the drivers behind them. The package structure and value being equal, what makes the strategies different is the way they support sales professionals' decision making, the way strategies send the signals on what to sell first or what to stop selling completely. We ran series of computer simulations and used machine learning techniques to demonstrate the impacts of strategies both compliant and non-compliant with TOC principles.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Throughput-based and gross margin-based commission schemes outperform price-based commission schemes, but gross margin-based schemes can lead to significant losses in environments with high overheads.
Reducing reporting cycles from quarterly to monthly can significantly decrease closing stock values, demonstrating the cost of not having up-to-date sales information.
Even when a sales department is at full capacity, the type of commission system used can still impact performance results, with gross margin-based systems potentially leading to stock spikes.
Instructor(s)
Marina Ushakova
Marina Ushakova: As a certified accountant in the first decade of her career, Marina was helping business by supporting their decision making. A PwC alumna, a proud Finance team member of Proctor and Gamble and International Paper at times, she left her job as a Financial Controller for 1500-employee company to concentrate on her true passion: continuous improvement and digital transformation in Finance. ToC has been a most valued tool she consistently relies on as a Transformation Lead on a journey to process excellence.