managing the complexity of sales territories and ......managing the complexity of sales territories...
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Managing the Complexity of Sales Territories and CompensationManaging the Complexity of Sales Territories and Compensation
Thursday, December 6, 20122:00 p.m. EST
Gerhard Gschwandtner, Founder & CEO, Selling Power has more than three decades of international sales and marketing experience.
Barry Trailer, Co-Founder, CSO Insightshas over twenty‐five years of professional selling experience ‐ an expert on sales processes and methodologies for complex business‐to‐business environment.
Kevin Gray, Product Marketing Manager, Varicent, an IBM Company has twenty years experience in the enterprise software industry with expertise in CRM, ERP, HRIS, and SPM software solutions.
Managing the Complexity of Sales Territories and Compensation
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What is Territory Management? Making an investment in a Territory Management SolutionHow is it part of, but separate from Incentive Compensation?Territory Management has complexity
Questions
Lessons learned from Implementing Territory Management Key Indicators that Territory Management is complex at your organizationAbout Assign – A Purposely Built Solution to Territory Management
2 A CSO Insights Territory Management SurveyKey Survey ResultsKey Challenges identified from the surveyDiscussions of the High‐Tech Segment
Agenda
Managing the Complexity of Sales Territories and Compensation
1What is Territory Management?
Territory Management (Terminology Varies from Organization to Organization)
Crediting Rules Deployment Model Account Assignments
Pre-ProcessorPortfoliosAccount Packages Sales Assignments
Managing the Complexity of Sales Territories and Compensation
1Making an investment in a Territory Management solution
Companies that invest in Territory Management software capabilities will gain 1% to 5% more revenue than they otherwise would have achieved.
Gartner paper: “Top Processes for CRM Sales”, January 2010
Managing the Complexity of Sales Territories and Compensation
1 How is it part of, but separate from Incentive Compensation?
Results vs ObjectivesResults vs Objectives
Earnings EstimationEarnings Estimation
Forecasting & ModelingForecasting & Modeling
Audit TrailAudit Trail
Track, Monitor & Change
Track, Monitor & Change
Compensation CalculationsCompensation Calculations
Credit AssignmentCredit Assignment
PaymentPayment
Dispute ResolutionDispute Resolution
AdjustmentsAdjustments
Quota AdministrationQuota Administration
HierarchiesHierarchies
Territory DefinitionsTerritory Definitions
Crediting RulesCrediting Rules
Plan DistributionPlan Distribution
Sales StrategySales Strategy
Sales Coverage ModelSales Coverage Model
Incentive MeasuresIncentive Measures
BudgetingBudgeting
Territory OptimizationTerritory Optimization
Reporting, Analysis & Correction
Reporting, Analysis & Correction
Compensation Processing
Compensation Processing
Plan Setup & AdministrationPlan Setup & Administration
Strategy & Plan Design
Strategy & Plan Design
Sales Operations: Territory ManagementSales Operations: Territory Management
Compensation Administration: CompensationCompensation Administration: Compensation
Managing the Complexity of Sales Territories and Compensation
1 How is it part of, but separate from Incentive Compensation?
Results vs ObjectivesResults vs Objectives
Earnings EstimationEarnings Estimation
Forecasting & Modeling
Forecasting & Modeling
Audit TrailAudit Trail
Track, Monitor & Change
Track, Monitor & Change
Compensation CalculationsCompensation Calculations
Credit AssignmentCredit Assignment
PaymentPayment
Dispute ResolutionDispute Resolution
AdjustmentsAdjustments
Quota AdministrationQuota Administration
HierarchiesHierarchies
Territory DefinitionsTerritory Definitions
Crediting RulesCrediting Rules
Plan DistributionPlan Distribution
Sales StrategySales Strategy
Sales Coverage ModelSales Coverage Model
Incentive MeasuresIncentive Measures
BudgetingBudgeting
Territory OptimizationTerritory Optimization
Reporting, Analysis & Correction
Reporting, Analysis & Correction
Compensation Processing
Compensation Processing
Plan Setup & AdministrationPlan Setup & Administration
Strategy & Plan Design
Strategy & Plan Design
Sales Operations: Territory ManagementSales Operations: Territory Management
Compensation Administration: CompensationCompensation Administration: Compensation
Managing the Complexity of Sales Territories and Compensation
What makes territory management at your company complex?
Enter your response into the chat…
Managing the Complexity of Sales Territories and Compensation
Changing Roles…Overlapping sales positions…
Different geographic hierarchies…
Different products sold in different regions by different sales people…
Tracking credit assignments for multiple sales people on the same transaction…
Sales people leaving, being promoted, or relocating…
Customers or named account assignments…
New products launched into the market…
Tracking exceptions to territory assignments…
Managing territory coverage…
What makes territory management at your company complex?
Managing the Complexity of Sales Territories and Compensation
Poll Question:What tools are you using to manage territory assignments and crediting?
1.Done Manually2.MS‐Excel or similar spreadsheet3.MS‐Access or similar database application4.Internally developed application5.Commercially available application
Managing the Complexity of Sales Territories and Compensation
What tools are used to manage sales territories?
A CSO Insights Territory Management Survey2
Managing the Complexity of Sales Territories and Compensation
A CSO Insights Territory Management Survey2• Been doing Sales Compensation & Performance Management surveys
now for 5 years (over 700 firms participated this year).
• Deeper dive into Territory Management this year with a follow-on study (nearly 200 firms of all sizes responded)
Managing the Complexity of Sales Territories and Compensation
Key Survey Results21. Regardless of size, spreadsheets are the primary tool for
designing/managing territories.
2. Territories primarily sized by prior year’s sales.
3. Average was 4 payees per transaction.
Managing the Complexity of Sales Territories and Compensation
Key Challenges identified from the survey21. Lack of transparency and flexibility which only compounds as the size
of the organization grows and roles proliferate.
2. Sizing by prior year sales becomes the default approach.
3. Relevance and ability to guide desired behaviors becomes exceedingly limited.
Managing the Complexity of Sales Territories and Compensation
Poll Question:How easy is it to make changes to territory definitions and assignments at your organization?
1.Changes made easily2.Some effort required to make changes3.Very difficult to make changes4.Do not know
Managing the Complexity of Sales Territories and Compensation
Discussion of the High‐Tech Segment2
Managing the Complexity of Sales Territories and Compensation
Lessons Learned from implementing Territory Management3Existing system couldn’t handle the complex of territory and crediting logicComp Admins manually maintained territories through Excel (over 1 million “territory rows”)
Two Comp Admins responsible for all aspects of commissions – in addition to managing all territory updates
With Territories changing on a daily basis, updates were made in the same Excel spreadsheet making it impossible to keep track of territory assignment history
Very Manual Process
ResourceConstraints
Hard to Track Changes
Managing the Complexity of Sales Territories and Compensation
Territory Management Complexity ‐ Key Indicators3
Account Assignments
Account Assignments
HierarchiesHierarchies
Crediting Rules
Crediting Rules
Managing the Complexity of Sales Territories and Compensation
About Assign – “A Purposely Built Solution”3• Solution/User Interface purposely
built for Territory & Crediting– Intuitive, flexible & fast
• Enables crediting rules that are precedence & exception based– Faster processing & easier to maintain
• Standard territory specific reports (e.g.; Gaps in Coverage)– Reduce errors & improvement in
decision making
Managing the Complexity of Sales Territories and Compensation
Territory Management &
Crediting is Complex
But…There is an easy to use solution
Varicent Assign
Varicent, an IBM Company
1 800 646 2601
Schedule a Product Demonstration
Save TimeSave Time
Automate Automate AdministrationAdministration
Adapt to ChangeAdapt to Change
User FriendlyUser Friendly
Business Owned Business Owned with reduced ITwith reduced IT
Prescriptive Prescriptive ApproachApproach
Standard ReportingStandard Reporting
Precedence Base Precedence Base Rules EngineRules Engine
2012 Territory Management ReportKey Trends Analysis
Managing the Complexity of Sales Territories and CompensationManaging the Complexity of Sales Territories and Compensation
Gerhard Gschwandtner, Founder & CEO, Selling Power has more than three decades of international sales and marketing experience.
Barry Trailer, Co-Founder, CSO Insightshas over twenty‐five years of professional selling experience ‐ an expert on sales processes and methodologies for complex business‐to‐business environment.
Kevin Gray, Product Marketing Manager, Varicent, an IBM Company has twenty years experience in the enterprise software industry with expertise in CRM, ERP, HRIS, and SPM software solutions.Thank You