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Author Topic: Additional Bonus per Win  (Read 1354 times)
CE Hunter
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« on: March 27, 2008, 08:51:32 PM »

Do you think that BD, Marketing and Sales staff should get an additional bonus per win?  Is this industry standard?  Comments?
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TBG
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« Reply #1 on: June 23, 2008, 03:49:03 PM »

Compensate to encourage the behavior you want. The problem with compensating only your sales person is that it leads to all kinds of behavior you don't want: hoarding leads, lone-wolf behavior, lack of teamwork, etc. In engineering, no sales is won by one individual. It is team selling.

I like the hockey analogy, because I am a hockey fan. Hockey is a team sport. In hockey, the last two players who touch the puck before the third player scores a goal receive a point in the stats. The goal scorer also gets a point. In hockey a point for an assist is nearly as highly prized as a putting the puck in the net. The greatest player ever, Wayne Gretsky, is viewed by many as the greatest, not because of his 894 goals, the most of any player. But if you took all his goals away, he'd still be the highest scorer in history with 1963 assists.

Another hockey stat is the plus-minus stat. Any player on the ice when an even strength goal is scored gets a "plus". Anyone on the ice when a goal is scored against gets a "minus."

I think the lead sales person who made the win happen should certainly be recognized and rewarded. But anyone with an assist should be recognized as well. Even those who were "on the ice" should receive recognition for being on the winning team. This reqards team behavior, which is what we want.
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MNSCEO
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« Reply #2 on: June 24, 2008, 12:42:35 PM »

I think the answer is NO. A professional services firm is not typically selected based on the efforts of one individual (with exceptions for specialized expertise, of course) and the team success should be emphasized.
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BobG
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« Reply #3 on: June 30, 2008, 06:02:48 AM »

>Do you think that BD, Marketing and Sales staff should get an additional bonus per win?<

Only if they incur a penality for each loss.

>Is this industry standard?<

Not as far as I know.


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Bob Gately, PE, MBA
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Josie Summa


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« Reply #4 on: July 19, 2008, 07:52:33 PM »

This cant work, for the reasons TBG states.  There are many hands on every BD effort, and it impossible to single out one contributor as the cause for the win.

In my office, we break down the [AEP] BD process into 4 stages. Depending on the size/scope of the project, dozens of people can be involved. 

Someone looking for a bonus-to-win system may lack appreciation for the efforts of his or her contributors.  Just sayin'


Josie

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Tim Klabunde
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« Reply #5 on: July 25, 2008, 08:48:19 AM »

The key to winning work in the A/E/C industry is relationships.  The more we focus on building a team environment that embraces and promotes relationship development the more successful we will be at winning work.  This said, both the lack of a reward system, as well as a poorly developed reward system, may be counter productive in achieving this goal. Instead, companies need to focus on recognizing individuals and groups that excel at bringing work in the door. You will often notice that, similar to Wayne Gretsky in TBG’s comment above, there are people that always seem to be around when you get the win. These individuals must be rewarded for their efforts.

The other side of the coin: One exception to note here is the idea of using a bonus structure to motivate an individual that can help steer the success of the company.  While not appropriate for an entry-level business development person, a VP of Business Development can be given overarching business development goals with bonuses tied to achieving those goals. By developing a bonus structure in this way the VP of Business Development will be motivated to not only bring work in the door themselves, but to train and motivate others to do the same.
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CivEngPro
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« Reply #6 on: August 05, 2008, 08:24:24 PM »

It seems as though I may be able to give a little different insight into this topic.  I got into engineering because I am for the most part an introvert.  I lost the specks a few years ago because I had lasik surgery and my daughter told me a few years back to dump the pocket protector because it wasn't "cool."   My point being, I am a nuts-and-bolts engineer who prefers and enjoys sitting behind my computer and cranking out engineering plans for a living.  I prefer NOT to be involved in any of the marketing or business development that is obviously required to make any business succeed.  For me, the best marketing is developing quality and consistent construction documents time and time again; it keeps the clients happy and it keeps them coming back.  That being said, I do believe it is important for companies to grow as well, so FOR ME, I believe it IS appropriate to give bonuses to the folks that are responsible for marketing and developing business and who go out and bring work in the door - that's the work that is my lifeblood, that keeps me billable, that allows me to make my company  money and that allows me to have a stable job.



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