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Agenda1. Tyco – Anaplan Backstory2. Compensation Evolution3. Constructing An Operational Model4. Internal Global Concerns

Regarding Data Security5. Creating A Coalition of Management

& Those Who Execute6. Horizontal Versus Vertical 7. Anaplan Customization8. Lessons Learned –

Expect/Plan For the Unexpecteda

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Sales compensation challenges Anaplan solutions

Tyco – Anaplan backstory

It is difficult to determine the impact of proposed changes on plan effectiveness

300+ comp plans are managed on a decentralized global basis across 50+ locations

The compensation information for 7,000+ reps is managed in various local systems

Making changes to compensation plan component are manually intensive and prone to human error

Established a centralized sales enterprise wide web based solution for sharing sales comp plans and performance data

Robust dashboard reports and analytics to evaluate business performance and plan effectiveness for businesses and sales leaders

Easy to use scenario based planning to quickly determine the effect of proposed changes on sales comp

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“Manual Compensation”• All Compensation calculated

manually• Difficult/Painful to aggregate

reporting at a total company level

“Hybrid Compensation”• Majority/All Compensation

calculated manually• Ability to aggregate

commission performance in a centralized systems

“Fully Centralized Compensation” Design Processing Payment Reporting

Compensation evolution“Crawl” Walk Run

“Informational” Delayed Reaction Immediate Reaction

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Constructing an operational model

Excel

Access

Anaplan

Calculate Commissions• Individual Performance• By Plan Metric• Commission Payments

Provide Performance Data• Enterprise wide format• Standardized Data

submission

Evaluate and Organize Data• Review and clean files• Manage version control• Audit Business Partners

participation

Loading into Enterprise Software System

Dashboards Reporting

Sales Comp Effectiveness

Sales Comp Design

Decrease time for Modeling Auditing Reporting

Designated for all sales incentive plans

Store performance and payout data

Business Partners ( Finance/HR/Sales/Sales Ops) Compensation/Operations Team

Provide quota setting support tool

for Sales Ops

On-going operational process

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Internal global concerns regarding data security

“The ability to share basic & critical sales performance data have become increasing difficult”The data elements commonly found to calculate sales incentive and analyze sales effectiveness today could contain:

• Base Salary• Variable• Job Role/Time in Role

• Commission Paid• Results versus Quota• Performance Rating

Even within the same global company, many countries have implemented stronger laws with harsh penalties to insure data protection of employee information.

Partnering w/ Legal•Having someone from Legal be apart of the process•May be necessary to have the local legal representative for each country

sign-off on acceptance• Be prepared to:• Provide a plan on how long data is maintained•Use other means to transfer data other than email

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Creating A coalition of management & those who execute“Not every company has the same starting point.”

Initial Challenges Can Range From:

•Manual (e.g. spreadsheet) vs. Enterprise Model• Local/Silo Calculators vs. Centralized within a function•Horizontal Based Reports vs. Vertical Based Reports

This may mean asking additional work from an already stressed team trying to calculate incentives each period.

RECOMMENDATION• Create a Coalition or Partnership with Senior Leaders to provide the

ground work within their respective functions to support the project• Set the stage that generates both the foundation and permission to

become part of the “rhythm & flow” of calculators normal processes.

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Horizontal versus vertical Bob Jones (ID #202)Sales Q1 Q2 Q3 Q4 EOY

Quota (USD) 390,000 420,000 450,000 480,000 1,740,000Actual (USD) 370,000 425,000 440,000 520,000 1,755,000Achievement Quarterly 95% 101% 98% 108% 101%Achievement YTD 95% 98% 98% 101% 101%Payout% YTD 95% 98% 98% 102% 102%Weight Target Incentive 2,406 4,813 7,219 9,625 9,625Incentive Earned YTD 2,283 4,723 7,076 9,791 9,791Quarterly Payment 2,283 2,441 2,352 2,715 9,791

Name Id Period Metric Actual Quota AchievementQuarterly

AchievementYTD Payout%

WeightedTarget

IncentiveIncentive

Earned YTDQuarterlyPayment

Bob Jones 202 Q1 Sales 370,000 390,000 95% 95% 95% 2,406 2,283 2,283

Bob Jones 202 Q2 Sales 425,000 420,000 101% 98% 98% 4,813 4,723 2,441

Bob Jones 202 Q3 Sales 440,000 450,000 98% 98% 98% 7,219 7,076 2,352

Bob Jones 202 Q4 Sales 520,000 480,000 108% 101% 102% 9,625 9,791 2,715

Bob Jones 202 EOY Sales 1,755,000 1,740,000 101% 101% 102% 9,625 9,791 9,791

Horizontal Based Reporting

Pro • Spreadsheet Based Style Report• Visually Oriented For User To Quickly Comprehend

Con• Difficult to upload into a Centralized Data Structure• Difficult to Append Reports with Different Frequencies

• e.g. Monthly vs. Quarterly

Vertical Based Reporting

Pro • Easy To Append / Utilize in Template Format• Easy to Upload into a Centralized Data Structure

Con • Straight List Format Large Number of Rows

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Anaplan customization

10

“Sales Compensation Is More Than Just a Commission Payment”

Today’s Leaders Depend on Their Compensation Teams To Provide Deeper Insight into Their Salesforce Performance

This may require joining Sales Performance Data with non-Traditional based reports

Employee Performance Reviews Job Catalogs Industry Segments

This makes it critical to have a SaaS based system flexible to adapt to new data sources

Customization of this nature is Anaplan Strength

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Lessons learned – expect/plan for the unexpected

11

“New Processes Lead to New Discoveries”1

2

3

“Initial Setbacks Are Long Term Successes”

“Carve Out Time After Go-Live for the Unexpected”

• Testing &UAT are not fool-proof• Live data through a New System can sometimes lead to new

outcomes/results

• The original/manual way of processing may sometimes not have been the most accurate•New Processes normally dependent on strong logical

approach which may now identified unrealized errors.

• Pad timelines sufficiently the first 6-8 months in order provide time to deal with unforeseen data scenarios

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