Annual plans can't predict every business need, like a new product launch or acquisition. A pre-approved budget for discretionary incentives (SPIFs) allows sales leaders to quickly motivate reps toward new, unforeseen priorities without having to disrupt the core compensation plan mid-year.

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The CRO, not product marketing, is closest to the customer and knows what they will buy. The product roadmap should be a collaborative effort driven by the CRO, who can directly tie feature delivery to ICP expansion and revenue forecasts. This creates accountability and predictable growth.

Avoid a fixed allocation of resources between core products and new initiatives. Instead, treat the investment mix as "seasonal." Periodically and purposefully reassess the balance based on the most pressing business needs—whether it's stabilizing the core for large customers or pushing aggressively into new markets for growth.

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).

A common failure mode for new CROs is attempting to create the sales playbook in isolation. Core pillars like ICP and value proposition are company-level decisions. The CRO's role is to be interdependent, facilitating this cross-functional creation process, not dictating it.

A one-size-fits-all sales role fails in consumption models. Success requires segmenting the team into specialized roles—new business acquisition, customer onboarding, and account management—each with distinct incentives aligned to their specific function, from initial sign-up to value realization and expansion.

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.

Salespeople's biggest frustration with comp plans is being held accountable for outcomes they can't directly influence. This perceived unfairness is a primary driver of attrition, making it critical to align incentives strictly with a seller's direct responsibilities and control.

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.

To ensure continuous experimentation, Coastline's marketing head allocates a specific "failure budget" for high-risk initiatives. The philosophy is that most experiments won't work, but the few that do will generate enough value to cover all losses and open up crucial new marketing channels.

To prevent rigid plans that break, maintain consistency in your high-level strategic pillars for the year. However, build in flexibility by allowing the specific tactics used to achieve those pillars to change quarterly based on performance and new learnings.