Three months ago, when the few paper calendars that remain on earth flipped over to 2013, ThoughtWorks, a 2,000-employee software company, reached a milestone. Sales commissions, long a staple of the organization, were no more: All salespeople were now officially on salary. This concluded a phaseout that began in early 2012.
If you’re curious about why and how this happened, you’re in luck. Martin Fowler, chief scientist at ThoughtWorks, has created a visual “deck” — or a series of seven virtual note cards — filled with fantastic details. The set reads something like a case study in answering a question many organizations confront: If we eliminate commissions for the sake of fostering a team culture, what will the consequences be? Fowler’s deck lays out the problem marvelously, including gems like this:
“Usually salespeople get commissions based on closing the sale, but there is a risk they will sell services that are difficult to fulfill, leaving the delivery team to pick up a mess. This tension is made worse because delivery teams are a big factor in selling follow-on work, yet aren’t included in the commission.”
More via How to Eliminate Sales Commissions.
