Quotas are good if they motivate your sales team to achieve at top levels. Measures of quota quality include accuracy, the shape of the performance distribution, and the credibility of the quotas and quota setting process among the sales people.
Our CFO feels we should give out quotas that add to 20% more than our annual plan. Is that a good idea?
Distributing more quota then the annual operating plan is called over allocation. A little bit is okay and a lot is not.
To be fair, this is a topic worthy of a book rather than a blog post, but we cover a few of the key concepts here.