Focus: Sales and sales management compensation

Diagnostic: Market research and benchmarking

MCI/WorldCom, Inc., Atlanta, GA – Business Market Group

MCI WorldCom is one of the worlds largest and most diversified telecommunications companies. MCI/WorldCom provides voice, data, and internet/extranet services to all business sectors, commercial and consumer.

Situational Overview

MCI was experiencing significant internal issues with sales and sales management compensation. They were attributing high turnover, lower than targeted profits, and some poor sales performance to their current compensation plan. The Chapman Group was referred to MCI and was engaged to develop compensation benchmarks and recommendations. MCI requested the research of similar corporate compensation data from other industry organizations, and the surveying of existing and past sales and sales management staff. The results of these efforts were to drive the creation of new approaches and compensation plans that would reward sales of MCI’s most profitable products and services, as well as address internal issues such as turnover and morale.

Efforts:

The Chapman Group conducted an overall business and market assessment and served as a resource for the corporate management team for compensation planning and evaluation.  To achieve this we did the following:

·     Developed initial scope of project document (needs, issues, expectations)

·     Interviewed senior management, sales and sales management staff

·     Conducted internal compensation focus groups on issues, concerns, and expectations

·     Conducted market study including over 103 high-tech industry organizations

·     Analyzed research findings and provided compensation recommendations

·     Created unique approach to “gain sharing”

·     Supported implementation of select revisions to sales and sales management compensation

Results:

·     Sales and sales management turnover was reduced by more than 10%

·     Compensation plans were expanded to include pay-outs on services and profitability

·     Sales and sales management compensation plans were obliged to drive and attain common goals