Sales Performance,

Expectations and

Management

Joe Zavaglia

Homework Assignment

To be completed by April 9th

Please bring or email TWO completed copies of the homework assignment, one for Joe and another for Chelsey
Homework assignment for April 9th, EDP Class

In preparation for your April EDP class I would like you to answer the following questions as they relate to your institution. During our class you will be asked to utilize this information and your analysis with other members of the class as you participate in small work groups to construct from scratch, scorecards, incentive programs, recognition and reward programs, and sales and service protocols all designed to assist your team in creating a winning combination of tools for your institution. This will be a time consuming exercise so please allow plenty of time to collect and analyze the data! Once you have analyzed the data from your bank work in your study groups to compare results with one another.

1)  Does your institution have an incentive plan for Retail Banking and Commercial/Business Banking?

2)  If so, please describe how the programs work (please perform a separate analysis for each program):

  1. What are the program triggers, that is how do you earn incentive?
  2. Are loan and deposit growth as well as fee income included? If not, what is included?
  3. What about service measures? Are they included in any of your incentive plans? If so, how is this measured and rewarded?
  4. What is the targeted amount of incentive that a Retail Banker is expected to earn per quarter and per year?
  5. What about a Business Banker what are they expected to earn per quarter and per year?
  6. When are incentives paid out?
  7. Monthly
  8. Quarterly
  9. Semi-annually
  10. Annually
  11. What percentage of the incentive is objectively decided vs. subjectively determined for:
  12. Retail Bankers
  13. Business Bankers
  14. What percentage of total compensation is paid out in incentive vs. base salary for
  15. Retail Bank managers
  16. Business Bankers
  17. Are there payout CAPS on the programs?

3)  How is product profitability tied to the Retail and Business Banking incentive plans? In other words are more profitable products more highly incented vs. less profitable ones? If so, please describe how they are differentiated.

4)  How is bank profitability tied to these incentive plans?

5)  How have the proposed guidelines from the FDIC altered how your bank is reviewing incentive plans going forward? For example, will loan portfolio performance/quality now be incorporated into the plans, etc.?

6)  How are your incentive plans tied to annual bank performance goals?

7)  How are individual performance scorecards linked to your incentive plans? By scorecards I’m referring to individual performance measures. Are your sales teams being asked to perform complimentary sets of goals for both incentive plans and scorecards? If there's a disconnect where is it occurring?

8)  What about recognition and reward programs/ campaigns, etc. how are they linked to performance scorecards and incentive? If there's a disconnect where is it occurring?

9)  Does your institution have clearly defined sales and service protocols? If so, what is measured and how frequently?

10) How are these protocols linked to:

  1. Performance scorecards
  2. Incentive plans
  3. Recognition and reward plans/campaigns

11) On a scale of 1-10 with 10 being the highest, please rate how effective your incentive plans are in altering the activities and behaviors of your Retail and Business Bankers.

12) How effective have they been in assisting the bank in achieving its’ annual performance goals?

13) On a scale of 1-10 with 10 being the highest, please rate how sales focused your institution is. What impact has the ongoing financial crisis had on modifying this focus?

14) Does your institution have a clearly defined sales and sales activity goals that spell out the following three items:

  1. How much
  2. Of what
  3. By when

15) Does your institution measure sales results, sales activities, or both? How are they measured and rewarded?

16) Do you have regular sales meetings and sales training sessions? What do you consider to be the most important sales training needs of your institution?

17) Do your incentive plans have any “holdback” or “claw back” provisions?