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CompensationMaster Newsletter Article, February 2007
How often have you heard…
…Let's get this branch profitable!
…We need to attract and hire the right sales associates!
But how do you do that? And how do you know you’ll get the results you want?
Now there's a straightforward way to understand where each of your branches
is—and what changes you need to make to achieve your goals.
CompensationMaster has adopted a concept called the growth-share matrix,
originally developed by the Boston Consulting Group for portfolio analysis, and
applied it to sales force compensation.
Now, you can take advantage of this method to analyze your business:
- If you alter your compensation plan, how will it affect your profitability?
- Do you need to recruit 3 top producers or 5 mid-level people?
- What changes to recruiting and compensation do you need to make to achieve
your target profit?
Here's how it works…
We graph your branches, showing where each one falls on the chart.
Shooting Stars
These branches have very high profitability and highly productive sales
associates. They tend to be strong even in a down market, but the profit might
be high enough to attract ruinous competition.
Cash Cows
These branches have medium profitability and highly productive sales associates.
They are also strong in a down market. The green circle, which overlaps parts of
the Cash Cow and Shooting Star quadrants, is the very best place to be.
Question Marks
These branches have high profitability in the short term but sales associates
are not as productive. They require a cash investment to become a Shooting Star
or Cash Cow; left alone their survivability is questionable.
Dogs
These branches have sales associates with lower productivity and are not highly
profitable. They have the highest risk and are typically the first to fail when
the market slows.
Where are your branches?
If you are interested in seeing how this can be used to help your company hit
your growth and profitability targets, contact
e-sales@compensationmaster.com.
We'll schedule a call to talk about your situation and see if we can help.
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