RT Journal Article
SR Electronic
T1 Portfolio Company Best Practices—<em>Give Salespeople Free Range, but Establish an Outer Perimeter</em>
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 19
OP 25
DO 10.3905/jpe.2015.18.4.019
VO 18
IS 4
A1 Harry Gray
A1 Chad Greenway
A1 Robert Feeney
YR 2015
UL https://pm-research.com/content/18/4/19.abstract
AB The business world teems with myriad opinions regarding the best way to manage salespeople; yet, investors and managers essentially agree that individual agendas are impossible to eliminate in the world of sales management. Often salespeople conduct their business segregated from the core management team, which may result in a focus on accomplishing individual goals rather than on making the company successful. These situations may drive near-term gains but almost always lead to longer-term profit margin erosion. One of the primary culprits for such misalignment is the sales commissions program, which is likely to undermine any sense of unity and common purpose in a business.TOPICS: Private equity, manager selection, in portfolio management, portfolio management/multi-asset allocation