Quota, or target, setting is one of the three main elements of a motivation scheme (alongside terms and conditions, and territory allocation.)
If one of these elements fails, the whole plan is likely to fail. For example, if a commission system pays generous commissions, but the quotas are too high or not achievable, the sales staff will not be properly motivated. An effective scheme is one in which all three elements are in harmony.
In this article we will focus on quotas and how best to set them for maximum success.
Who Is Responsible For Setting Quotas?
Assigning quotas is a skilled task that requires time, careful thought, research, and experience. Quota setting requires both a qualitative and quantitative approach.
The overall responsibility of allocating quotas lies with the sales management team, who must work closely with the incentives design team.
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