SWOT Category: Internal Strength

When considering compensation, should results matter?

Our small, international software company has suffered declining or stagnant revenues over the last ten quarters. I’m sure many companies can relate.  We are forecasted to see an increase in sales this quarter and a slow, but steady climb over the next three quarters.  Having just come through this slow period, our executive board is considering implementing a new remuneration plan that ties compensation to results.

Our marketing and sales management teams would feel the greatest effect of any changes made in this area.  Can SWOT Team members shed some light on the advantages and pitfalls of implementing such a program?  Experiences from both sides of the line would be helpful. 

­ CEO, International Software Company

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* 1. Can you help? What's your best advice?

 

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