Innovation is the way that you fight for the future of your business head on. Why wait until your business grows into something that you will have less control of?
Business owners can usually see that if they don't tackle certain issues within their company, these issues will grow into something that will be hard to control. There is a way to combat these issues, which is to adopt innovative behaviours right now.
Sales teams, especially in new companies, can have commission packages weighed heavily in their favour - which helps the company to grow quickly. In many businesses, this causes a problem as the company starts to take off. Sales teams are usually offered great commission payments, such as 10% on everything they sell.
The business owner(s) will be paying themselves frugal amounts, while the sales team may start to 'flash the cash', becoming mini monsters that have grown different cultural norms than the rest of the business.
This is not a good situation, yet it happens lots of the time.
While still paying great commission payments to encourage growth, it is important to ensure that the sales team work in a 'perpetual' framework. This can be achieved by creating a commission structure that encourages consistent sales activity each month - which is especially important the month after a salesperson has a particularly great month of sales - when we know that laziness can creep in.
By paying 12% commission on sales instead of 10% as in the above example, but with the caveat of them having to attend 20 meetings each month, OR their 12% commission drops to 5% in months when a salesperson doesn't hit the required meetings target, then salespeople are motivated to work in the company's favour.
By attending 20 meetings, this creates perpetual, consistent, metronomic, activity. When a company owner knows that they are almost guaranteed that a salesperson will be attending a particular number of meetings, it means that they can plan ahead, 'fight the future', rather than stay awake at night, wondering where the next deal is coming from.
In this second situation, business owners are happy, salespeople are happy (IF they act consistently each month), and employees around the business are happy, knowing that the sales team do get paid handsomely, but ONLY when they work hard on an ongoing basis.
You can speak to us to find out how our innovation consultancy and services can help you to adopt such innovative behaviours in several areas of your business. Whatever you choose to do, fight the future now, and let the competition get embroiled in fights with their own businesses down the line.
We'd love to discuss how we can unlock the innovation in your business and work together. Call us on 0161 7060483.
Innovation Company is an innovational consulting firm that assists growing companies.
We operate in automotive, health, marketing, hospitality, and tech.