Sales Compensation

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(No Transcript)
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Sales Compensation

• Marius Slapsys
• mslapsys_at_spectrum-ebusiness.com
• Direct phone- 630-368-7077
• Fax- 630-368-7090

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Sales Compensation Overview

• Compensation plans A - Z
• Simple to complex
• Companies large and small
• Plan comparisons

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Industry Focus

• Discreet manufacturing
• Telecommunications
• Retail
• Construction

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Incentive Plan Types

• Commissions
• Bonus/performance incentives
• Discretionary
• Sales rebate programs
• Recognition programs
• Sales channel specific programs

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Construction Industry

• Commissions
• Based on contract/project to date values
• Realized project gross margin
• Payment history
• Credit split complexity
• Commission hurdle rates

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Construction Industry

• Bonus/performance incentives
• Based on three tiers of evaluations
• Individual performance
• Company performance
• Individual contribution evaluation

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Construction Industry

• Discretionary bonuses
• Accumulation of bonus pool amounts
• Unwieldy manual process

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Retail Industry

• Commissions
• Bonus/performance incentives
• Discretionary
• Sales rebate programs
• Recognition programs
• Sales channel specific programs

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Discreet Manufacturing

• Commissions
• Bonus/performance incentives
• Multi-tiered
• Product specific
• Sales rebate programs

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Telecommunications

• Commissions
• Complex quota plans
• Achievement against plan
• Revenue multiplier
• Commission revenue multiplier

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Telecommunications

• Commission payment caps
• Dual cap system
• Cumulative cap
• Cap changes period to period

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Telecommunications

• Bonus/performance incentives
• Sales credit rollup

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Spectrum Connect

• Discovery
• Definition and design
• Build and validate
• Deployment
• Value assessment

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Plan Element Design

• Designed to calculate all type of incentives
• Commissions
• Bonuses
• Rebates

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Payee Assignment

• Payees can be
• Traditional sales force members
• Contract sales
• Vendors
• Customers

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11i OSC Enhancements

• Formula wizard
• Extends applications ability to meet demands of
  complex comp plans
• Embedded SQL
• Allows application to perform pre-calculations
  where required

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11i OSC Enhancements

• Multi-dimensional tables
• Rate tables
• Measurement tables
• Allows for the use of multiple factors in the
  determination of incentives

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Construction Solutions Design

• Solution uses formula wizard and SQL embedded
  formulas to track required contract to date
  values.
• Plan elements designed to use calculated or
  aggregated values.

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Construction Solutions Design

• Payment plans designed to use values that tracked
  project complete as well as payments received
  for a project to date
• Calculated payment amounts are offset against
  amounts previously paid to determine net amount
  paid.

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Telecommunications Solutions Design

• Multidimensional tables with special formulas
  used to perform interim calculations to derive
  data to be used by compensation plans

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Telecommunications Solutions Design

• Embedded SQL program used to select appropriate
  multiplier and calculate incentive amount
• Uses pre-calculated values
• Reads table to select multiplier
• Selects plan element
• Performs calculation

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Telecommunications Solution Design

• Payment plans for commissions and bonus payment
  thresholds
• Payment capped at cumulative percentages for a
  milestone
• Tracks all paid to date amounts
• Subtracts previous amounts paid from derived
  milestone amounts to determine amount to be paid

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Retail Solutions Design

• Plan elements for
• Contract sales force
• Internal sales force
• Sales management
• Artists royalty programs
• Customers rebate programs

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Retail Solutions Design

• Use of quota and non-quota plans
• Plans used to track level of achievement against
  quotas
• Revenue classes and class hierarchies used to
  administer seasonal marketing programs and
  royalty programs

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Discreet Manufacturing Solution

• Use of multidimensional tables
• Use of embedded formulas to perform
  pre-calculations

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Summary

• Analyze plans
• Determine unique plan requirements.
• Determine commonalities within compensation plans.

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Summary

• Drive solution to use of common templates.
• Complete with application extensibility.

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Conclusion

• The analysis reveals that even plans that are
  complex and unique can be broken down to common
  elements and administered by a commercial
  incentive management tool.

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Sales Compensation

• Marius Slapsys
• mslapsys_at_spectrum-ebusiness.com
• Direct phone- 630-368-7077
• Fax- 630-368-7090