To effectively align the behaviors of your sales force with your corporate strategy, the strategy needs to be embodied in your incentive compensation plans. Yet most companies find it challenging to achieve this strategic alignment because they are unable to design, implement, or manage the incentive compensation plans that they desire.

This inconsistency between plan and strategy can negatively affect sales force productivity and effectiveness and ultimately result in lost revenue, lower margins, and higher costs.

The following tips are derived from a long-term study of incentive compensation management practices at global enterprises and reflect the best cross-industry practices for ensuring strategic alignment of incentive compensation plans and organizational strategy.