Keeping pace with your changing market: Gartner backs adaptability in SPM solutions
In the past, sales performance management (SPM) solutions have been seen as an aid for HR, allowing easier management of sales teams through automated commission administration. But in today’s markets, performance management is a vital tool for strategic business management and SPMs have a critical role to play in boosting company-wide performance. Gartner’s 2024 Market Guide for SPM shows an emerging imperative for solutions that can flex and grow with organisations and markets, as well as accurately calculating, crediting and monitoring commissions and compensation.
Beyond annual reviews: performance as a year-round discussion
Today’s most successful firms are moving away from a rigid, annual review structure, towards a flexible, feedback driven model. Gartner highlights how these changes improve employee engagement and help to align workforce goals with a company’s long-term strategy. Continuous check-ins enable organisations to refine sales strategies continually, delving into current successes and issues and maximising the efficiency of the sales team. This is a positive shift, enabling a culture where processes and priorities are flexible and capable of adaptation to fit current and emerging needs.
Despite this transformative potential, Gartner observes that SPM systems are generally strikingly undervalued. Only 18% of HR leaders view them as effective, even though high utility SPMs can improve performance by almost 25%. We see an opportunity to demonstrate and explain to our customers and associates how the latest solutions could add far greater value to corporate performance.
Intelligent systems for intelligent performance
Flexibility has become the baseline for successful technologies in all functions. An SPM solution must be able to support complexity without losing speed and flexibility. Gartner emphasises the importance of system adaptability, with easy reconfiguration within a robust framework.
AI-driven performance tools offer effective real time insights and provide predictive data to help with decision-making and evidence-based planning. Gartner emphasises the use of ‘performance cues’ in SPM to provide clarity, encourage efficiency and reinforce achievement.
An intelligent, adaptable SPM can provide insights and motivate behaviours that reduce employee burnout, create more consistent performance. A sophisticated, data-driven solution will support teams to adjust their priorities and optimise their productivity in line with company and market needs.
SPMs can enable differentiated growth for ambitious organisations
A modern SPM doesn’t just look at who’s performing. It tells you why, how and what’s next. Gartner reports that performance enablement is the future for SPM in leading organisations. Administering commission is already a commoditised characteristic of well-designed solutions. The benefits from adopting a cutting-edge, agile solution will be:
- Better alignment between employee behaviour and business goals
- Better accountability for management
- Effective talent development
- Increased employee retention
How far does your SPM solution go in unlocking this kind of competitive advantage? Is it time to consider a brand new, future-optimised system? If you’d like our help with assessing the capability of your current solution and advice on optimising or replacing it to fit your ever-evolving business needs, talk to us.