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To align teams with strategy, compensate them for performing specific activities you hypothesize will lead to success (e.g., discovery calls), not just the final outcome (e.g., revenue). If the activities don't work, it's a leadership failure, not an employee one.
Create organizational alignment by using a two-tiered outcome system. At the executive level, define success with financial outcomes (e.g., revenue). For product teams, define success via the specific user behavior changes that will produce those financial results, connecting daily work to the bottom line.
Ask every team member, "How do you make the company money?" For non-revenue roles like a camera operator, frame their contribution in terms of preventing costly mistakes (e.g., wasted footage, delays). This fosters a deep understanding of their impact and gives their work more meaning.
Varonis's CMO sets simple, easy-to-remember leading indicators as goals. For example, the executive briefing team's primary goal is the number of C-level guests hosted, not the resulting ARR. This focuses the team on activities they can directly control.
Instead of focusing solely on quotas, hold reps accountable for controllable inputs and behaviors, like the number of sales calls. This approach provides clear data for coaching and pinpoints the root cause of performance issues, rather than just judging the outcome.
Strategic goals and KPIs are meaningless to frontline employees. Leadership's primary execution role is to translate those abstract goals into a clear set of daily, observable activities. The person making fries needs to know the specific action they must take that contributes to the strategy.
A common OKR failure is assigning teams high-level business metrics (like ARR) which they can only contribute to, not directly influence. Success requires focusing on influenceable customer behaviors while demonstrating how they correlate to the company's broader contribution-level goals.
In a tough market, sales results slow down, which can demotivate a team that thrives on closing deals. To counteract this, leaders must shift their rewards. Instead of only celebrating wins, they should actively and publicly celebrate the consistent daily activities and behaviors that will eventually lead to success.
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.
Standardized incentive plans are ineffective. Leaders must understand each team member's unique desires—whether it's public recognition (clout), cash bonuses, or work-life flexibility. Reject a macro strategy and instead treat employees as individuals with different motivations, not as hostages who share the founder's ambitions.
Instead of copying a standard sales comp plan, start with the CEO's top strategic priorities for the year. The core purpose of the comp plan is to translate those high-level goals into specific behaviors on the sales floor. If a strategic goal cannot be reinforced by the plan, question its design.