A combination of the two systems could be used, with a 75 to 25% ratio, for example.
An important element of the compensation plan could be identifying a way that this could be used as an instrument to drive synergies and cooperation between what was formerly Express and Ground. One of the ways to do this could be to create teams of former Express and Ground sales executives and to award joint bonuses (5 to 10%) if these teams reach a certain revenue level. This would ensure (1) a better communication between the two former segments; (2) a better outreach on both Express and Ground markets; (3) resulting synergies, particularly through cross-selling.
At the same time, the formerly Ground employees should also gain access to some of the perks that the Express executives had, such as the President's Club. As seen from the case study, for many of the executives, work is not only about a pure financial recognition and reward, but also about personal recognition from the top management and the other colleagues.
Technology should also be involved in the implementation of the compensation plan, as a way to increase transparency in the organization, particularly since technology is such a big part of ARISE anyhow. Sales executives should be able to track and verify their performances against the set goal online, thus monitoring how well they did in both Express and Ground (so, their performance will be monitored both against their basic area of expertise and against the combine Express + Ground cross-selling).
3. Rationale
One observation at the start of this rationale is that this is not only about the compensation plan and about implementing ARISES. It is about overlapping two organizational cultures and transforming them into one functional one. So, beyond the compensation plan, integration should be supported by joint actions such as team building efforts and support seminars. These actions will have one primary objective:...
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