sales performance management – what is it, why do i need it and how can i leverage an automated...
TRANSCRIPT
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Sales Performance
Management
November 19 2015
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1. What is SPM?
2. Why will automation help you?
3. How to identify the right solution for you?
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TQMTerritory planning and
target setting
SPMSales Performance
Management
Sales ReportingExecutive, Management and
Administrative Reporting
ICM – External Incentive Compensation
Management
ICM - InternalIncentive Compensation Management
TalentRecruitment, Selection,
Onboarding
TQMTerritory and Quota
Management
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Territories, Accounts, and Quotas
Sales cycle activity generally
tracked in a CRM
Calculate commissions and
generate pay file
Generate commission statements
and operational reports
Gain insight into performance,
margins, products, spend
SPM
Process
Automation
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Why is SPM Important?What benefits can be realized by automating the
SPM process?
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The SPM Maturity Curve
● Basic Calculations
● Manual Process
● Reactionary
● Flexible and Configurable
● Owned by Business
Team
● Focus on analytics not
tactics
● Attract and retain top
sales talent
● Automated Tools
● Lack Flexibility
● Basic Reporting
● IT Dependent
Survival
Mode
Functional
Operation Strategic
Advantage
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Case Study Findings and Initiatives
Current State Future State
Pillar
Clie
nt
OS
Be
nch
ma
rk
Clie
nt
OS
Benchm
ark
Candidate Assessment, Selection,
Onboarding2.58 1.63 2.5 4.13 3.5 3.5
Coaching and Training2.62 1.5 2.25 4.10 3.5 3.5
Sales Process & Methodology3.36 2.75 2.75 4.64 4.13 4
Territory and Quota Management3.14 2 2.5 4.36 4 3
Compensation Design and
Administration 2.29 1.5 2.5 3.83 4 4
Overall 2.8 1.88 4.21 3.83
This analysis shows sales performance capability below the benchmark Survival
Strategic
EmergingFunctional
Differentiated
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Case Value Grid
Positive Impact to Sales Performance in FY16
Ea
se
of Im
ple
me
nta
tio
nSize of calculator
shows relative
guideline cost
Precise costs will
need to be calculated
as part of Roadmap
phase
Assess
mobile
tech.
option
Sales
Process
Training
High
Medium
Low
Upgrade
recruitment
process
Implement
SPM system
Quota
Setting
Process
Comp Plan
Design
Integrated
Development
Approach
University
useCRM
process
clarification
Spiff
Use
Mgt. Dev
Program
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Business Case Drivers for SPM Automation
Cost Reduction
● Commission
overpayment reduction
● Fewer, more
standardized plans
reduce cost of Sales, IT
& Admin support
● Retention of high quality
talent – low attrition
● Real-time visibility to metrics:
● Increased revenues through better performance tracking
● Greater ability to direct behavior
● Faster, more accurate
performance reporting,
● Greater integration with
other systems (CRM,
CPM)
● Greater ability to model
incentives, quotas,
territory alignment
● Improved controls –workflows, approvals
● Best-in-class approach
● Improved auditing and compliance
Performance Risk Management Decision Making
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Case Study – Payback in 13 months
Current State Issue ICM Value Proposition Scale of Impact
Likelihood Impact Quantification
High operational risk and
consequential reputational risk
Provides a stable, robust platform that delivers
reliable commission process
High High Intangible
High error rate in commission
calculation, 1% overpayment
estimated
Reduction in error rate by at least 90%, effective
tracking High High Tangible
High level of operational FTE support Opportunity to reduce headcount or redeploy to
more strategic, analytical activitiesHigh Medium Tangible
Highly manual commission reporting
process leading to shadow accounting
and reduced selling time
Real-time automated communication of sales
performance and commission creates more selling
timeMedium Medium Tangible
Lack of visibility and transparency for
roles on sales performance, lack of
flexibility on comp plan modelling
leads to sub optimal margins
Increased sales effectiveness through greater
visibility of performance leading to high margins,
agility to deploy plan variation and additional
programs. External brokers find company easier to
do business with
High High Tangible
Uncertainty over compliance
capability/accuracy
High level of compliance tracking accuracy provides
accurate reporting
Medium Medium Intangible
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How to Identify
the Right
Solution for You?
success is: When it works! Real Results!
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3 Risks
1.
2.
3.
Requirements Gathering
Product Selection
Deployment Readiness
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Collect
Credit
Calculate CompensateCommunicate
Change
CONTROLThe 7 C’s
of comp
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CONTRACT
• Licenses – how
many, account for
growth
• Services – external
support
IDENTIFY QUALIFY PRESENT SCOPE
• Identify which
vendors can
deliver against
your
requirements
• Demo scenarios
• Scoring
methodology
• Determine
Business Units in
scope
• 7Cs Current
State
• 7Cs Requirement
• Assess shortlist
using demo
scenarios
• Select vendor
• Scoping
methodology
• Map requirements
• Finalise
implementation
plan
Selection Process
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technology
purchase
The OS Roadmap takes you
from uncertainty to opportunity
selectscopeevaluate implement adopt transform
that’s the advantage
uncert
ain
tyopportu
nity
PLAN DEPLOY MANAGE
● Current state assessment
● Future State Roadmap
● Implementation Plan
● Business Case
● Software Selection
● Implementation Planning
● Deployment
● Change Management
● Business Operations
● Technology Support
● Process Optimization
● Transformational Outcomes
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Data Strategy SPMSales Performance
Management
End-to-End Process Redesign
Resource Capacity Planning
Centre of Excellence
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FurtherInformation
Jon ClarkDirector Strategy Services EMEA
+44 (0) 7768 558771
from strategy to success.