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September 12, 2017
Article

What's the Right Kind of Bonus to Motivate Your Sales Force?

By: Doug J. Chung and Das Narayandas

Companies typically compensate their sales force by using some combination of salary, commission, and bonuses, but executives are often unsure which incentives provide the best motivation. Should bonuses be tied to quotas or should they be given unconditionally? Is it... View Details

Keywords: Compensation and Benefits; Motivation and Incentives; Salesforce Management

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November 2019 (Revised April 2020)
Case

Purple Innovation, Inc.: The Online to Offline Marketing Challenge

By: Elie Ofek and Nakisha Williams

This case focuses on Purple Innovation Inc. (Purple), a company that started out in the Direct to Consumer (DTC) mattress space. In late 2018, after a successful launch and IPO with sales predominantly originating from its website, Purple was looking to sustain its... View Details

Keywords: Offline Sales; Marketing Strategy; Digital Marketing; Growth and Development Strategy; Consumer Products Industry; Retail Industry

03 Oct 2014
News

The Revival of a Salesman: The Importance of Sales and Strategy to Business

29 Jun 2021
News

What Does the Future of Work Look Like for America’s Biopharma Sales Force?

March–April 2014
Article

Do Bonuses Enhance Sales Productivity? A Dynamic Structural Analysis of Bonus-Based Compensation Plans

By: Doug J. Chung, Thomas Steenburgh and K. Sudhir

We estimate a dynamic structural model of sales force response to a bonus based compensation plan. Substantively, the paper sheds insights on how different elements of the compensation plan enhance productivity. We find evidence that: (1) bonuses enhance productivity... View Details

Keywords: Performance Productivity; Salesforce Management; Compensation and Benefits

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12 Sep 2017
News

What’s the Right Kind of Bonus to Motivate Your Sales Force?

December 2003
Case

Sale of Hephaestus, Inc. to Vulcan Ventures, Inc.

Henry Hephaestus founded Hephaestus, Inc. in 1895. Its first product was a tapered roller bearing for use with horse-drawn wagons and carriages. It reduced friction on the axle and reduced the force necessary to move a heavy load, thereby enabling one horse to do the... View Details

Keywords: Business Exit or Shutdown; Entrepreneurship; Family Ownership; Manufacturing Industry

21 Nov 2016
Research & Ideas

It Matters That Your CEO Doesn't Know Much About Sales

CEOs need to roll up their sleeves and learn more about the customer-facing sides of their businesses, like sales. Source: AlexBrylov Let’s face it: To most C-suite executives, sales processes are often an afterthought or a somewhat... View Details

Keywords: by Michael Blanding

What's the Right Kind of Bonus to Motivate Your Sales Force?

Companies typically compensate their sales force by using some combination of salary, commission, and bonuses, but executives are often unsure which incentives provide the best motivation. Should bonuses be tied to quotas or should they be given unconditionally? Is... View Details

Do Bonuses Enhance Sales Productivity? A Dynamic Structural Analysis of Bonus-Based Compensation Plans

We estimate a dynamic structural model of sales force response to a bonus based compensation plan. Substantively, the paper sheds insights on how different elements of the compensation plan enhance productivity. We find evidence that: (1) bonuses enhance productivity... View Details

02 Sep 2019
What Do You Think?

Are Overlooked Forces Shielding the US from Severe Economic Downturns?

will be very important in determining the length of the current US economic expansion. Those were the messages from responses to this month’s column. Steve Adcock was optimistic about the influences of technology and services on economic cycles. As he put it, “these... View Details

Keywords: by James Heskett; Service

January 1994
Case

ABC Sales and Service Division: A Case Study of Personal and Organizational Transformation

By: D. Quinn Mills, Brock W. Orwig, Janet M. Pumo, Todd C. Stilson and Richard C. Wei

In the midst of dramatic changes in the information systems industry and declining profits at the ABC Co., the vice president in charge of the sales and service division, Jeff, and his managers attempt to transform their division. The transformation gets off to a good... View Details

Keywords: Organizational Change and Adaptation; Transformation; Motivation and Incentives; Resignation and Termination; Communication; Business or Company Management; Information Technology Industry

Web

Entrepreneurial Sales 101: Founder Selling - Course Catalog

not. Often the critical success factor is exactly how a firm goes to market – with its sales force. But the rules have changed – innovations like ‘product-led-growth’ models and social media are changing the status quo and View Details

22 May 2024
HBS Case

Banned or Not, TikTok Is a Force Companies Can’t Afford to Ignore

system to get each of their users to contribute to the content,” Ghosh notes. Unlike other social platforms that force people to build a following in order for content to be seen, the tool enables users of all abilities to build on... View Details

Keywords: by Rachel Layne; Technology

A Practical Approach to Sales Compensation: What Do We Know Now? What Should We Know in the Future?

Personal selling represents one of the most important elements in the marketing mix, and appropriate management of the sales force is vital to achieving the organization’s objectives. Among the various instruments of sales management, compensation plays a pivotal... View Details

Web

Entrepreneurial Sales 102: Building, Managing, and Scaling the First Sales Team as a Founder, Investor, or Advisor - Course Catalog

had spent more time understanding at school was how to sell.” -Dean Nohria This course explores the complex subject of how to build, manage, and scale the first sales force including how to: Hire your first... View Details

24 Apr 2014
News

Leading a battle against corruption, a force that slows economic development

efforts are having a real impact, with fewer allegations of corruption appearing in the media. Companies with low anti-corruption efforts, while enjoying faster sales growth in corrupt markets, have lower profit margins and return on... View Details

May 2013
Supplement

Paul Thomson: Walker Insurance

This is the Spreadsheet Supplement for Walker Insurance: Paul Thomson (HBS Case 813057). Includes Exhibit 1a, Exhibit 1b, Exhibit 2, Exhibit 4, Exhibit 5, Exhibit 6, and Exhibit 7. View Details

Keywords: Entrepreneurial Organizations; Entrepreneurs; Entrepreneurship; Search; Search Funds; Sales Force Management; Sales; Sales Channels; Insurance And Reinsurance; Insurance Companies; Acquisitions; Hiring; Service Management; Service; Insurance; Salesforce Management; Selection and Staffing; Insurance Industry; United States

January 2016 (Revised July 2018)
Case

Cyberdyne: A Leap to the Future

By: Doug J. Chung and Mayuka Yamazaki

Cyberdyne Inc. was a Japanese technology venture that wanted to commercialize a hybrid assistive limb (HAL). HAL was a robotic exoskeleton system for people who had difficulty walking due to nervous system disabilities resulting from stroke, spinal cord injury (SCI),... View Details

Keywords: Go-to-market Strategy; Pricing; Sales Channel; Technological Innovation; Marketing; Sales; Distribution; Strategy; Medical Devices and Supplies Industry