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Building the Business Case - Mike Ryan
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Hi, this is Mike Ryan, Senior Vice President of Marketing and Strategy for Madison Performance Group, and I'm here to answer what makes or breaks an incentive program.
You know, I found that the devil is always in the details, specifically the details of your business case. Smart planners start with the end in mind. What they do is they don't necessarily lead with ideas about awards or destination selection, instead what they do is they go in and try to gain and keep C-Level support and approval. And what they do is they build a business case that is gonna be predicated on giving the organization a true economic advantage.
Obviously the business case for any incentive program is predicated on incremental revenue, and going in you should have a pretty good feel for what that truly is, and devise your program so that it rewards against those numbers. You never want to pay out for what you're already getting or what you're projected to get.
And trust me your top management does not want to either. So what you should do before you even go in for funding is to partner with sales ops or any other group that understands the revenue potential of the group that you're targeting.
Understand their forecast for the year. Compare that against what others in the category might be saying. Understand all the influences of what's happening in your marketplace. What you'll do is you'll gain a lot of credibility in terms of presenting numbers that really make sense. But you'll also be in a position to devise programs that are truly going to sway the organization's potential to gain above and beyond those numbers.
So in my opinion what makes or breaks an incentive program? It's the rigor and creativity of your planning process. Do that in the way you blueprint your programs and request funding and you'll gain executive support and even a fan on the C-Suite.