Managing compensation caps in key accounts

Article Abstract:

Sales people dislike the concept of caps - an arbitrary limit placed by sales management on the earnings potential from the sales person's compensation plan. A recent survey of national and key account managers showed that, despite their unpopularity, caps are quite prevalent. This article develops a conceptual framework for classifying the various mechanisms used by sales management to limit pay opportunity outside the compensation formula and provides a prescriptive heuristic for practicing sales managers to use in invoking cap mechanisms effectively. Emphasis is placed on the problems specific to implementing caps in reward systems applying to global, national, key account and customer-focused teams. (Reprinted by permission of the publisher.)

Methods, Compensation and benefits, Compensation management, Sales personnel, Salespeople

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National account management: large account selling or buyer-supplier alliance?

Article Abstract:

This paper investigates various ways in which National Account Management (NAM) relationships can differ, and offers a delineation of NAM relationships based on degree of collaboration. The, focusing on NAM alliances, the most collaborative NAM relationship, the authors conduct an exploratory data analysis to determine if NAM alliances differ from other forms of alliances on various measures of collaboration. The findings suggest that NAM alliances are no less collaborative than other types of alliances. Managerial implications are also presented. In summary, the level of collaboration that exists in a NAM relationship is a key determinant of the appropriate strategies to employ. (Reprinted by permission of the publisher.)

Research, Strategic alliances (Business), Industrial suppliers

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