Plan Design
When to Redesign a Comp Plan — and When to Hold the Line
Author
Abby Flanigan
Date Published
The case for staying the course
Comp plan changes carry a hidden cost that most finance and rev ops leaders underestimate: the trust debt incurred when reps feel the rules keep changing. Before initiating a redesign, ask whether the problem is structural or whether it is a process or communication failure that can be solved without touching the plan mechanics.
Clear signals a plan genuinely needs to change
A plan needs a redesign when it is driving measurably wrong behavior, when the business model has fundamentally shifted, or when administrative complexity has made accurate payout calculation unreliable. These are structural problems. A plan that is merely unpopular or misunderstood usually needs better communication, not a new design.