Every vendor has a definition of SPM that conveniently matches their product category. The truth? SPM is a discipline, not a software category.
What SPM Actually Is
SPM is the practice of aligning sales behavior with business outcomes through:
- Planning — Territories, quotas, capacity models
- Incentives — Compensation plans that drive the right behavior
- Execution — Accurate, timely calculations and payments
- Governance — Controls, exceptions, and compliance
- Analytics — Insights that improve all of the above
Why SPM Breaks
SPM fails when any of these elements are disconnected:
- Plans that don't match reality
- Incentives that reward the wrong behavior
- Calculations that nobody trusts
- Governance that doesn't exist
- Analytics that nobody acts on
Most organizations excel at one or two elements and fail at the rest.
The Vendor Trap
Vendors sell point solutions:
- ICM vendors sell calculation engines
- SPM vendors sell planning tools
- Analytics vendors sell dashboards
- Governance vendors... don't really exist
Nobody sells the complete picture because the complete picture is hard to sell.
What Actually Works
1. Start with governance — Before you buy software, define your policies
2. Design for reality — Plans should reflect how sales actually happens
3. Measure what matters — Not everything that can be measured should be
4. Communicate constantly — Reps should never be surprised by their paycheck
5. Iterate continuously — The first version is never the final version
The Bottom Line
SPM isn't a tool you buy. It's a capability you build. Tools help, but only if you know what you're building toward.
Tags