Is the Commissioned Sales Force Model Right for Today’s Semiconductor Industry?

MIT SDM Systems Thinking Webinar Series

Marvin, Heath

Heath Marvin, SDM ’14

Heath Marvin, Field Applications Engineer, Microchip Technology; SDM Fellow

Date: May 23, 2016

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About the Presentation

The semiconductor industry has entered a new phase where growth has slowed to a pace more in line with the rest of the economy. This shift requires that business be conducted across the industry in new ways that will help to sustain and grow profitability. One area in critical need of reform is the way in which companies incentivize and compensate their sales forces. While the norm now is to pay commissions based on completed sales, current research indicates that there are benefits to using a sales process that does not include commissions.

In this webinar, SDM Fellow Heath Marvin will discuss how system dynamics can be used to test and compare the robustness of a commission-less model against the more traditional system. He will:

  • explain modeling and simulation techniques that can analyze the effects of using different types of incentive plans;
  • review results that reveal that a commission-less sales force is superior in nearly every scenario; and
  • demonstrate why a sales force can be more effective without commissions when selling a complex product in a complex industry—whether the economy is growing, stable, or in a recession.
A Q&A will follow the presentation. We invite you to join us!

About the Speaker

Heath Marvin started his career as a semiconductor chip designer and has been moving closer to the customer ever since. He now works as a field applications engineer for Microchip Technology and spends most of his time working with customers designing embedded products, including a wide variety of microcontrollers. In June 2016, he will receive a master’s degree in engineering and management from MIT as a System Design & Management graduate.

About the Series

Sponsored by the System Design & Management (SDM) program at the Massachusetts Institute of Technology (MIT), the MIT SDM Systems Thinking Webinar Series features research conducted by SDM faculty, alumni, students, and industry partners. The series is designed to disseminate information on how to employ systems thinking to address engineering, management, and socio-political components of complex challenges. Recordings and slides from prior SDM webinars can be accessed here.