Download - Realise the potential of superior compensation management – IBM Sales Performance Management
IBM Incentive Compensation ManagementAlign Sales Performance with Sales Strategy Alan ChapmanGeneral ManagerIBM Sales Performance Management
► Sales Incentive Compensation is the link between corporate strategy and customer-facing activity
► This business process is one of the lowest hanging fruit for savings and efficiencies
► Next generation sales forces will need to rely on data for competitive advantage
Three Axioms
Show me the sales incentive plan …“
and I’ll show you the company’s business
priorities”
Priorities are reflected in comp plans and configured in SPM systems
territory definitions, account assignments, plan measures, rates,
crediting rules and more
“Our main goal was to get more strategic… flexibility meant everything in enabling us to clarify that vision and execute on it.”“IBM Incentive Compensation Management can support every idea we have in terms of how we want to manage compensation.”
— Getty Images
Tailor incentives based on company priorities
Bonus for bundling multiple key products together (e.g. mortgage along with insurance)Recognizing cross-selling new product families to their customers (e.g. first long-term debt product for that household)Rewarding employees for referring customers to another business unit
— An IBM customer, North American bank
Reward associates who have spent time helping their guest choose a whole outfit IBM ICM analyzes sales tickets to identify associates whose guests have purchased a shoulder garment and three other items
Extra 2.5% commission on the sale— Destination XL
Tailor incentives based on company priorities
Tailor incentives based on company priorities
Drivers Incentive Plan Route efficiency
(units per hour) Customer satisfaction Safety (hurdle for
participation)— Waste Management
Sales rep dashboards to understand how they’re doing and target their future efforts
► Sales Incentive Compensation is the link between corporate strategy and customer-facing activity
► This business process is one of the lowest hanging fruit for savings and efficiencies
► Next generation sales forces will need to rely on data for competitive advantage
Three Axioms
Many firms still rely on a patchwork of spreadsheets, email, manual processes, and outdated legacy systems to manage and administer variable comp plans
Manual stepsWorkaroundsErrors
Legacy approaches are a drain on the company
Is it hard to imagine why?
Is it hard to imagine why?
With IBM – administrators organize their business logic visually to gain efficiencies, reduce errors and facilitate collaboration
Cost of errors and commission overpayments estimated at greater than $1 million per year
— An IBM customer in financial services
FACT #1
REDUCE ERRORSBY MORE THAN
90%
FACT #2
REDUCE IT/ADMINSTAFFING
BY MORE THAN
40%
FACT #3
REDUCE PROCESSING
TIMESBY MORE THAN
50%
“Enterprises will miss the equivalent of 5% to 10% of annual sales as “lost opportunities” which could have been captured by improving the management of overall SPM”
“many plan participants maintain their own compensation tracking documents that they use to double check their compensation departments' calculations.”
— David O'Connell, Aite Group
Focus Sellers on Selling
“By having transparency into the system we don’t have to worry about them saying, ‘Wait—I don’t get this.’“…spend more time selling”
— An IBM customer in mobile e-commerce
“If you don't get your territory right, you can't get you incentive compensation right. If you can't get your incentive compensation right, you can't motivate your sales team. We knew that the foundation needed to be started with territory management.”
— EMD Millipore https://www.youtube.com/
watch?v=-25WYf8YiL0
“Previously, they only received compensation reports on a monthly basis; now, they have daily insight.” “By checking their own performance regularly, they can keep themselves on track to hit their targets.”
— Huntington Bank
Utilize mobile technology for field sales staff
“Over 1400 of our field sales reps can access their sales compensation system via their iPads along with the other tools they use on-site with customers.” “They don’t miss a beat when it comes to understanding the compensation implications of their selling activities.”
— An IBM customer in the media industry
► Sales Incentive Compensation is the link between corporate strategy and customer-facing activity
► This business process is one of the lowest hanging fruit for savings and efficiencies
► Next generation sales forces will need to rely on data for competitive advantage
Three Axioms
SPM Maturity Curve
Scaling a Market
Time
CHAOS pre-ICM
STABILIZE the operation
OPTIMIZE decisions & processes
SPM
Com
pete
ncy
and
Valu
e
Manage your sales team
Pay for Performance
YTD
Sale
s
YTD Quota Attainment
Boom Bust Analysis
2013
Atta
inm
ent
2014 Attainment
Quota Distribution Top & Bottom Performers
Ranking1234
RepMarilynAbdulSteveJian
Attainment183%121%98%42%#
of R
eps
Quota Attainment %
Manage your sales team
What can we learn with Watson Analytics?
Information you might already possess. Have you ever correlated it?
► Sales by product, payee, territory and month
► Compensation: Plan type, payout by component, payee and month
► Territory hierarchy: city, state, region, country
► Payee hierarchy: payee, manager
► Time in role ► Tenure with company
► Performance rating ► Base salary► Education► Last employer► HR survey info (How
well do you understand the comp? Are you paid fairly? etc.)
► External demographics (household income, real estate values, etc.)
All Payouts Data Store
Easily get data from ICM over to Watson Analytics
Advanced analytics without the complexity
Think differently
Designing effective comp plans
Coaching your sales
reps
Territory decisions
Hiring the right sellers
Prioritizing leads
Smarter quotas
► Sales Incentive Compensation is the link between corporate strategy and customer-facing activity
► This business process is one of the lowest hanging fruit for savings and efficiencies
► Next generation sales forces will need to rely on data for competitive advantage
Recap: Three Axioms
To learn more
ibm.com/spm