“We need our global sales reward system to better support our business strategy of transforming from a hardware provider to a strategic software provider on a global basis.”

• Current mix of product is 80% hardware/20% software; objective to shift to 25%/75% within one year

• Concern that many in the sales force do not fit the competency profile required to sell software solutions

• Increasing use of indirect channels, resulting in channel conflict and sales crediting issues

• Sales incentive plan does not differentiate between hardware and software revenue

• Historical precedent of throwing money at the sales force in the form of spiffs/contests to drive behavior changes

• Rising concern about perceived inadequacy of pay levels and their impact on ability to attract and retain top talent

• Developed a global sales compensation philosophy that served as the guiding principles for the ensuing incentive design effort

• Clarified sales and technical sales support role definitions in support of business objectives and channel strategy

• Designed new sales incentive arrangements for all sales and sales support positions on a global basis that significantly differentiated software revenue from hardware revenue

• Articulated new sales crediting practices aligned with sales roles and channel strategy

• Actively supported the implementation effort by producing all communication materials, plan documentation, and earnings calculators