Testing Designed COIP against the safety Check-
Before launching COIP we encourage our clients to
test it against our safety check-list which summa-
rizes frequent incentive ﬂaws that we too often ob-
served in corporate life.
We address the following COIP potential issues:
An incentive plan that takes more than 10 minutes to
read can be often considered too complicated and
thus forgotten moving attention from the plan to ge-
neric hope of matching the requirements.
Disconnected by Business Strategy
The incentive plan must be tailored on current com-
mercial strategies in order to avoid misalignments
and conﬂicting inputs to ﬁeld force .
Disconnected from ﬁeld reality
Growth percentages that ﬁts CEO tastes but are not
based on actual market potential, actual price setting
processes and actual competition are doom to fail-
ure and de-motivating to Star performers.
Lacking a Real-Time visibility
Incentive plans need to follow the rhythm of actual
result measurement processes such as business re-
views and forecasting milestones: payout must at-
tempt to match their frequency.
Frozen & Unchangeable in time
In changing environments and contexts (such as
product launches) incentive plans must be designed
with embedded dynamics and expected changes.
Based on Untraceable Metrics
Incentive plans which are even partially based on un-
traceable metrics (such as market share of which no-
body knows exactly the size) remain unfollowed.
Ethics and Compliance Unfriendly
The plan needs to protect reps from excessive, un-
conditional emphasis and pressure on revenue
growth: this often becomes a key trigger in non-
compliant business practices.
More a Contract than an Incentive
The incentive plan must feel and be communicated
as an incentive, not as a contractual addendum to
the employment contract, it must be a motivating part
of the job, not a legally regulating part.
Establish Guidelines to Set Effective Goals &
It is important to enrich the COIP with implementa-
tion guidelines ensuring that line executives and HR
executives don’t compromise a good design with
poor implementation. The typical (and most danger-
ous) way to dramatically deteriorate the efﬁcacy of a
COIP is to set non-realistic targets or to set too easy
targets. In the ﬁrst case (the most common) sales
forces tend to abandon the targets soon in the ﬁscal
year and “try their best to sell as much as possible
and possibly survive the year-end’s performance re-
Design Global, Regional & Country Incentive
We guide our Clients through the designed COIP into
the speciﬁc COIPs of different geographies and busi-
ness units of interests. This process allows potential
incongruences or regional incompatibilities to
emerge before launching the compensation plan.
Decide Program Governance & Management
The Corporate governance process must include the
appropriate management processes to ensure conti-
nuity and accountability during the COIP implementa-
tion and improvement phases. Thinkeen walks Cli-
ents hand-in-hand through this effort supporting the
identiﬁcation of the right accountable positions and
the involvement of the appropriate internal key stake-
Design Communication Plan & Materials
Thinkeen supports its Clients during the planning and
implementation phases of the COIP communication
strategy. This includes the preparation of communica-
tion material and the direct participation to the launch
SELECTING Commercial Incentive Plans
ThinKeen Global. Miami, Florida USA - thinkeen.com