Are Sales Goals Dead?

Sales goals were the scapegoat after John Stumpf’s brutal congregational testimony in late September.  Would his plan to eliminate sales goals have solved the problem?  We think there are many more important problems that need to be addressed.

Compensation

Sales goals are established by senior management to meet shareholders’ profit expectations and they are embedded in compensation plans to reward client-facing professionals if they meet these goals. At the end of the day crafting a sales-oriented solution is a Catch 22. 

Establishing compensation plans is an art that is led by HR professionals with the input of senior executives. In complicated financial services companies, both roles have become increasingly important. I always wondered why my bosses at Bank of America were joined at the hip to their HR executive. Now I get it, and the new regulatory initiatives are only going to strengthen this bond. Read More