> A sales rep who negotiates a 30-day payment term instead of a 45-day payment term is cash-wise. The company can get the money sooner and is able to put it to use elsewhere.
I don't understand using a sales rep as the first example.
Don't you just tell the salesperson how their compensation is tied to deals signed, revenue, and the speediness of payments?
Doesn't that formula alone tell you what the behavior will be?
Agreed on the value of educating employees about what's important to the business, but isn't sales an exception, due to convention of how their compensation is structured?