Sales Outperformance through Compensation Redesign (A)

Premier Life Insurance, a fast-growing insurer has just navigated the COVID-19 crisis and climbed from eighth to fourth place in market share. Its Board now expects the business to double within two years.

Management realises growth depends too heavily on a few top producers and on incentives that no longer fit the firm’s goals. The case follows their journey to redesign sales compensation, back-test the financial impact, and guide an orderly transition while bringing the sales force on board.

Students diagnose structural weaknesses in a sales organisation, assess alternative compensation designs, conduct winner-loser analyses and discuss how communication, transition and complementary initiatives (products, training, digital tools) influence the success of incentive reforms.”