Sales Planning and Management
Aligning Sales Incentives With Performance Goals
Cascade worked with Polar Air Cargo to develop a sales incentive program that (1) rewards the Sales Team for achieving business goals and (2) encourages them to seek the most profitable additional business for the network.
Setting targets for a transportation network requires subtle and complex optimization to determine the best and most profitable mix of business given available capacity and potential market opportunities. The challenge from the sales incentive perspective is translating this complex business detail into clear and concise guidance for a Sales Team focused on their markets and customers. Cascade met this challenge by building sales targets on market forecasts and optimized network allocations, but communicated the guidance in terms of straightforward volume and rate targets by origin-destination market.
The incentives are based on performance at the origin station level to stimulate the team work that is critical in the air cargo selling environment. An individualís incentive payment is based on how well his or her team meets the business plan or improves on it for all the markets served by their station. Thus the incentives reinforce the underlying planning process and the resulting business plan and stimulate improvements that strengthen network performance.