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We have seen that companies, especially in the tech industry, are early adopters to AI-based quota setting and leverage AI models to set quotas or, at the very least, use AI-based market potential measures.

;Primary performance measure was set at 60% weight and recurring revenue performance measure was set at 40% to motivate sales salespeople mindshare to service, consumables and reagents sales.; The company provided intensive training and communication materials to educate and engage the sales force on the new plan.

You can download a graphic report of findings, a summary analysis of the trends or a short quiz that you can use to start productive goal-setting conversations in your organization.

Nearly 40% of respondents took one or more actions to address incentive plan goal-setting challenges, such as delaying the timing to finalize goals, widening performance ranges, and adding or increasing the emphasis on relative metrics.; ;Most respondents are not planning significant changes to incentive plan designs for 2026 or the short-term incentive (STI ) performance mix or long-term incentive (LTI) award vehicle mix.Most also have not made changes to equity grant practices in response to stock market volatility or proposed shareholder advisory group policy changes.; ;Among respondents with incentive cycles ending in 2025, most (roughly half for STI and 60% for LTI) do not currently anticipate the use of discretion, with one-third taking a “wait and see” approach.

Many sales managers refer to this process as “setting quotas.”

However, it’s important to note that the research on employee participation in goal setting is mixed, with other research finding that supervisor-set goals are more powerful than self-set goals (CIPD 2016).

;Set boundaries.

Working with management, boards have to sort through all of the noise — opinions, ideas and information — and make rational, informed decisions about how to set priorities, allocate resources and make investments.

Concept 1: Have a Laser-Focused Compensation Philosophy Before compensation targets and financial and non-financial metrics for incentive programs can be set, a compensation committee must adopt a compensation philosophy that drives the program’s overall structure.

The percentage of sales teams meeting the benchmark declined each year since 2017, reaching a low point in our most recent data set, as shown in Figure 1.