Delaying compensation plans until after the fiscal year begins creates a vacuum where salespeople are unsure how to behave. This uncertainty paralyzes productivity and demotivates the team, wasting the energy generated by the sales kickoff (SKO).

The third week of the year is the ideal time for an SKO. This allows the team to decompress after year-end, gives enablement time to prepare pre-work, and sets the tone for the business before the quarter gets too hectic. It avoids being too rushed or too late.

Many companies mistakenly hire salespeople and then define their job and compensation. The correct sequence is to first determine the business need, then construct the specific job role to address it, and finally design a compensation plan that incentivizes the required activities before ever posting the job.

To powerfully reinforce desired behaviors, compensation plans must connect the reward as closely in time as possible to the sales activity. This "proximity principle" is more effective than distant, larger payouts because it creates a clear and immediate link between action and incentive, even if the initial payout is smaller.

Companies often wait too long to hire for Sales Operations. Bringing on one person early to handle territory alignment, commission structures, and a 'sales constitution' is critical. This foundational work prevents operational chaos from becoming a speed bump when the company enters a high-growth phase.

Don't finalize a comp plan in an executive silo. Share the draft with trusted, top-performing reps and ask them to break it. They will immediately spot loopholes and unintended incentives, allowing you to create a more robust plan that drives the right behaviors from day one.

SKOs are not just training events; they are critical retention moments. More than half the sales team is evaluating their future with the company during the kickoff. The event solidifies who stays and who leaves, making it a pivotal moment for talent retention.

Sales compensation is the most powerful lever for changing a sales team's behavior quickly. More than training or directives, incentives tell reps what they are supposed to do and why, directly shaping their daily actions and strategic focus.

When modifying a compensation plan, the primary goal should be to drive a specific behavioral change aligned with new business strategies, such as focusing on new logos or products. The plan's mechanics must be simple enough for salespeople to immediately understand which new actions are being prioritized and rewarded.