Changing quotas mid-year is one of the most sensitive decisions in RevOps. Do it without justification and you shatter rep trust. Avoid it when the data demands it and you waste a half-year running against a broken plan. The key is knowing when an adjustment is warranted and executing it with transparency.
When Mid-Year Adjustments Are Warranted¶
Not every miss justifies a quota change. Here are the criteria that separate a legitimate adjustment from a panic reaction:
Adjust when:
- Market conditions shifted significantly (recession, regulatory change, major competitor entry)
- A product launch that quotas depended on was delayed or underperformed
- More than 60% of reps in a segment are below 70% attainment at the halfway mark
- Territory data reveals a structural imbalance that was not visible at planning time
- Headcount plan changed materially (hiring freeze, unexpected attrition above 15%)
Do not adjust when:
- A single bad quarter driven by deal slippage, not structural issues
- Only 2-3 reps are missing - that is a performance management issue
- Leadership wants to “make the number look better” without changing underlying capacity
- Reps are lobbying for lower quotas without data to support the request
The litmus test: if you replaced every rep on the team with a clone of your best performer, would the number still be unachievable? If yes, the quota is the problem.
The Adjustment Process¶
Step 1: Quantify the gap. Calculate the difference between current run-rate and full-year target at the segment level. Do not adjust individual quotas - adjust at the segment or team level first, then cascade.
| Segment | H1 Actual | H1 Plan | Attainment | H2 Implied | Adjusted H2 |
|---|---|---|---|---|---|
| Mid-Market | $3.8M | $4.5M | 84% | $4.5M | $4.0M |
| Enterprise | $5.2M | $5.0M | 104% | $5.0M | $5.2M |
| SMB | $1.4M | $2.0M | 70% | $2.0M | $1.6M |
Step 2: Validate with pipeline. Check whether H2 pipeline coverage supports the adjusted targets. If mid-market has 2.8x coverage on the adjusted $4.0M number, the adjustment is defensible. If coverage is below 2x, the adjustment may not go far enough.
Step 3: Model the comp impact. Calculate what each rep’s OTE path looks like under the new quota. No rep should see their realistic earning potential decrease because of a mid-year adjustment that corrects a planning error.
The Communication Framework¶
How you communicate matters as much as what you change. Follow this sequence:
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Leadership alignment first. Get CRO, CFO, and HR on the same page before any rep hears about changes. Agree on the narrative and the numbers.
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Manager briefing. Arm frontline managers with the data, the rationale, and answers to the five questions every rep will ask: Why now? Is this permanent? How does this affect my comp? What about my pipeline? Is this happening to everyone?
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Team announcement. Present the adjustment as a plan correction, not a concession. Share the data that drove the decision. Be specific: “Mid-market quotas are being reduced by 11% for H2 based on market performance data and pipeline coverage analysis.”
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Individual conversations. Each rep should hear their new number from their direct manager in a one-on-one, not in a group email.
What Not to Do¶
- Do not adjust quotas quietly and hope no one notices the change in the system
- Do not make adjustments retroactive - H1 results should stand as-is
- Do not cherry-pick which reps get adjustments based on politics rather than data
- Do not promise that quotas will not change again - commit to transparency, not permanence
Key Takeaways¶
- Mid-year adjustments are warranted when structural conditions changed, not when a few reps are underperforming
- Adjust at the segment level first, then cascade to individual quotas
- Always model the comp impact before announcing changes - protect OTE paths
- Communicate through a structured cascade: leadership, managers, team, then individual conversations