How do you measure the importance of sales and marketing
talent in your organization? Can
you share any measures you
have or examples/case studies
that you have used?
JEFF DOBBS: When Terumo
thought about taking the business
direct, we gave a lot of time and
consideration to building the right
skills and capabilities we would
need to create and deliver the
value proposition to our targeted
audience. We needed the ability to
re-introduce physicians to the importance of vascular access, as well
as the ability to teach and influence the adoption of new points of
access to the vasculature.
The ability to change the conversation with our customers, and then
to deliver the technical and procedural education and technology
to enable that “new” conversation,
has driven the need to hire and develop sales and marketing professionals who “get it” and can deliver
the suite of sales and marketing
tools needed. The entire exercise
of starting with the end state and
then backing into what capabilities we needed to get there really
helped build success.
ERIC FINK: Jazz evaluates sales
leaders’ performance based on
three metrics: meeting sales goals,
people leadership, and culture fit
within the values based organization: what people accomplished,
how they accomplished this, which
is conducted via peer review.
What is your philosophy on compensation for sales and marketing? Does your company pay over
the industry standard? Under the
industry standard? How did you
determine your strategy?
BRENDA VESEY: There is a
delicate balance. The company
needs to attract talent, while
staying aligned with the current
workforce. We work together
with a business partner and the
compensation committee (with a
cross-functional team). Together
we set a strategy. For example a
company may elect to pay above
mid-point: 50-75% to attract the
right talent and also pay current
employee base competitive to the
ERIC FINK: For cash (salary &
bonus), we actually target the
median on average and with equity we target the 60th percentile.
However, all employees are equity
eligible and currently receive annual grants in addition to new hire
equity and any equity associated
with President’s Club.
JEFF DOBBS: It’s important to
understand where you play, and to
understand the market. Be purposeful in setting the bar at the
right level. Our bar is set at the
75th percentile. We purposely hire
the right people at the right compensation level to retain them. We
set the highest standards. Once we
put the bar at the right level, we
then aligned all of the compensation mechanisms (short term, long
term) to reinforce this.
When designing incentives for
sales and marketing, what types
of plans have proven most effective and efficient? What is your
philosophy on at-risk compensation versus base salary? Capped
vs. uncapped commissions?
JEFF DOBBS: For our Direct Sales
reps we have a highly leveraged
compensation model that puts
It’s one of the most challenging tasks in our industry: finding the people who have the background, drive, cultural fit and other traits to be
a valuable part of our organization. We acquire
some of this information through talking to colleagues, fine-combing resumés, doing interviews, and other methods. In the end, how do
we determine whether a prospective candidate
has what it takes to exceed? Can they become
one of the team, a member of the family? It’s a
combination of all the above and more. We asked
a number of executives who have been successful in attracting and building the best talent.
here’s their wisdom, for your benefit.