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Incentive measures in a solution-oriented sales organization
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Helsinki University of Technology |
Master's thesis
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S-38
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Language
en
Pages
xii + 95 s. + liitt. 22
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Abstract
The case company, a large multinational vendor in the ICT industry, is facing increasing pressure from its customers and competitors.
Old merits as being a reliable product provider are not enough in the current business environment.
To succeed the target company must become a true partner.
It needs to engage with the customers and develop solutions to their business challenges.
New incentive measures must be developed and aligned with the needs of a solution-oriented sales organization.
The target company has recognized the above needs and defined the objectives of the thesis as follows: "To gain extended understanding regarding incentive measures in a solution-oriented organization and provide managerial recommendations for the target company."
The thesis was carried out in two parts.
First, a critical literature review was conducted.
Second, a case study was done by interviewing sales personnel the target company as well as interviewing three external organizations and three academic experts.
The findings from the thesis include a framework for designing incentive measures and managerial recommendations with a focus on issues relevant for the target company at its current transformation phase to become a solution-oriented company.
The key attributes of an incentive system in a solution-oriented sales organization are: Focus on the customer, and focus on the long-term performance and long-term customer relationships.
The recommendations provided to the case company are derived from the key attributes.
By introducing account-based measurement in all measures the existing silo-thinking mode of operation can be transformed towards a mode of operation that enables focus on the customer.
Transforming the focus of the measures from a financial to a non-financial viewpoint also achieves a customer-oriented mode of operation.
The case company needs to introduce new incentive measures that are focused on customers and long-term performance, such as opportunity management.
Finally, the case company needs to execute with a group of customers a set of pilot projects that will explore the use of customer perceived value measures as part of an incentive measure structure.