The W. Edwards Deming Institute Blog

Posts Tagged ‘commissions’

Eliminating Sales Commissions at Air Force One

At Air Force One, the word team means something Over the past few years, Air Force One CEO Greg Guy did away with commission pay for all sales associates and general managers. “The performance has been great and I would never consider going back,” he says. Of the HVAC contractor’s 170 employees, pay changed for […]

Hallmark Building Supplies: Applying Deming as a Business Strategy

Louie Paynter discussed Hallmark Building Supplies’ experience in applying Deming’s management system as a business strategy at the 2012 annual W. Edwards Deming Institute conference. Louie gives great credit to Hallmark Building Supplies’ success (in applying Dr. Deming’s ideas and improving results for the business) to working with Cliff Norman, a consultant with Associates in […]

Why ThoughtWorks Eliminated Sales Commissions

Martin Fowler offers insightful details on the problems with using sales commissions (click on the right arrow button at the very top middle to see the next slide). Some quotes from his presentation: there are serious problems with the sales commission model, problems that led ThoughtWorks to get rid of all sales commissions in 2013 […]

Eliminate Sales Commissions: Reject Theory X Management and Embrace Systems Thinking

Dr. Deming explained that paying sales commissions to staff introduced distortions into the organization that damaged overall performance. Each topic has different connections to Deming’s system of profound knowledge, as he laid it out in the New Economics. The problems with sales commissions heavily touch on all of the four areas of the management system. […]