The Commercial Principle
"I'm not a businessman, I'm a business, man!" - Jay-Z
Havoc is wreaked on organizations when the only forward career motion is management. The problem is 1) employees want to progress in their careers, and 2) the only way to do that is by becoming a manager. CROs and VPs have long NOT wanted their revenue stars moving to management, so they make management less lucrative. That is a good strategy for some, but why someone wants this jump often has less to do with near-term comp or even wanting the job. It's about wanting a seat at the table, being off the hamster wheel, and having security.
Reps who are star earners often find themselves on PIPs later in their tenure, while managers get to go to exec offsites, talk to the board, etc. It's not about the job change. It's about the perceived shift in value. I have a voice, or I don't. So, how do we fix it? I recommend all organizations adopt the "Commercial Principle" as a role in the hierarchy—the next layer up from the most senior AE seat.
What is different about the Commercial Principle role? First, it sits on equal footing with a second-line manager in seniority and base comp band. They are added to the revenue leadership slack channels and email distros, and consulted on key changes. Their skip-level is with the CEO.
They are ABOVE standard performance management. They have earned the right to miss a quarter. They must continue performing, but their drop-down is not getting fired but losing the Commercial Principle badge. There is more padding between a miss and losing their job.
They are a revenue partner to the organization and have carry on their deals. In addition to OTE, 1-3% of their revenue in an end-of-year bonus. Carry increases with tenure.
They are the sales team API for other departments. Product, marketing, and finance should make the Commercial Principles their first stop when gathering feedback on a release or campaign.
I don’t know why you wouldn’t want your star performers, who want to stay star performers, at the table for a long long time.