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Over the years I've run into several folks who would suggest that an adjustment to the plan makes sense if the outside event that trashes sales opportunities is significant and permanent. The logic is that if the event does not create a permanent change, then adjusting quotas for it creates an expectation that bailouts will be the rule.

Wally:

Those are solid criteria and worth considering. I agree that we have to be v-e-r-y careful about bailouts; because once that precedent is set it is tough to go back.

Thanks for the comment!

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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