on sales performance management system
TRANSCRIPT
On Sales performance management System
Author: Vu Xuan Thuc [email protected]
Company: Vietsoftware International – Mobile Enterprise division
Hanoi – Feb 2015
What is Sales Performance Management system? Sales Performance Management System (SPM) is a system that helps organization drive sale from
strategy through to execution while improving efficiency, accuracy and timeliness in administrative
processes angle.
Regular features in Sales Performance Management - Sale work flow process management (include sale metrics)
- Quotas and objective management
- Sale data management
- Territory and channel management
- Incentive compensation (to promote or encourage specific actions, employees)
- Sale reporting and analytics
Pay for Performance With Incentive Compensation Management solutions from IBM, organizations can:
- Reduce errors in over-payments of their pay-for-performance and compensation programs
- Plan, model and easily implement changes to pay-for-performance programs
- Provide increased visibility into pay-for-performance with reports and dashboards/KPIs
- Improve process efficiencies in administrating pay-for-performance programs
- Help ensure retention and coaching of top and bottom performers
- Foster motivation and an overall selling culture by driving sales behaviors
- Enhance adoption and trust with the participants of pay-for-performance programs
Sales Operations Sales performance management software from IBM helps organizations:
- Align sales strategy with corporate objectives
- View sales effectiveness reports and dashboards/KPIs
- Track and monitor sales team and individual performance
- Manage sales territory definitions, assignments and crediting rules
- Plan, approve and distribute attainable sales quotas
- Collaborate and communicate with the entire sales organization and other lines of business
Territory Management Territory management and crediting software from IBM helps organizations:
- Define and mange territory definitions and assignments
- Manage complex sales territories and coverage models
- Create and maintain sales hierarchies (i.e. customers, products, geographic locations, sales
people, etc.)
- Manage sales overlays and crediting splits to multiple sales roles/people
- Define and manage crediting eligibility, overrides and assignment rules
- View territory and crediting reports (i.e. Territory Coverage Gaps, …, etc.), dashboards and key
performance indicators/KPIs
- Realign sales territories and easily adopt to market opportunities and changes
Incentive Compensation Sales compensation management software from IBM helps organizations:
- Automate sales commission calculations to save administrative time
- Streamline territory management and quota setting
- Automate, track, and control payment disputes with configurable workflows
- Provide scalability for sales organizations with high transaction volumes
- Perform commission forecasting and calculate performance rankings
- Manage sales compensation compliance requirements in highly regulated industries
Smart features in Sales Performance Management - How sales are trending in different regions and why
- How incentives are affecting your ability to meet revenue targets
- Which customers are highest value
Next generation features in Sales Performance Management - Sales force automation with features like social collaboration, content sharing
- Social performance management
This sale activities must tied to an appropriate work practice and processes, and sale manager can give
feedback on specific activities.
Other requirements
On technology - Transition to the cloud
- Integrate with other applications: HR, CRM,ERP
On performance, efficiency - Get the checks out on time
- Make sure they’re accurate
- Others:
1. Be flexible and nimble (quick, light, agile) for changing priorities
2. Manage complex territories
3. Set accurate quotas
4. Generate enthusiasm
5. Deliver timely and insightful reports
6. Resolve questions and disputes (debate, argue)
7. Do it with lower headcount
8. Analyze impact of new plans
9. Plan for reorganizations
Sales performance evaluation criteria (Measurement) When consider the criteria for sale performance evaluation, the results will help to make key policy for
organization and define operations in Sales Performance Management system.
AUM: Assets under management
Sales performance management approach - Process driven
- People driven
- Incentives driven
Process-driven performance measurement
People-driven performance measurement
Incentives-driven performance measurement
Return Of Investment (ROI) when deploy Sales Performance
Management
Benefits of SPM - Increase Sales Performance
- Lower Administrative Costs
- Improve Compliance (??? optional)
SPM system cost Cost for implement and administer and SPM system:
- Up-front costs (software cost – from solution vendor)
- Software licenses (for platform environment)
- Ongoing Support and Administration
- Integration costs
Quantifying Return on Investment - Operational Efficiency
- Sales Rep Productivity (sale quality, efficiency)
- Reduction in errors and overpayments
- Alignment (adjustment) of incentives to objectives
- Compliance (reduce cost for public company)
Phases of deploying Sales Performance Management system Many organizations tend to deploy and evolve SPM solutions through four stages of maturity:
- Process integrity
- Process efficiencies
- Business agility
- And optimization of SPM practices
Some solution vendors
IBM IBM Cognos Sales Performance Management
IBM Cognos Sales Performance Management (SPM) delivers measurable improvements for
organization’s finance, sales, human resources, and IT lines of business. SPM automates the process of
calculating and reporting variable-based pay, providing more visibility and accountability into one of
their largest variable expenses. With SPM solutions from IBM, you can enable new kinds of
compensation plans that drive desired sales behavior, reduce commission cycle times, and eliminate
errors in overpayments.
Oracle Product name: Oracle Sales Cloud Sales Performance Management
Features:
- Sales productivity tools including Sales Coach, Sales Lightbox, and Whitespace Analysis
- Compensation plan automation for cash and non-cash incentives
- Territory modeling with what-if analysis
- Top-down and bottom-up quota
- Planning
- Sales performance dashboards with scorecards and leader boards
Related products
- Oracle Incentive Compensation
- Oracle Social Cloud
Comparision http://www.gartner.com/technology/reprints.do?id=1-26VA96U&ct=150106&st=sb
Source: Gartner (January 2015)