Sales Performance Management – what is it, why do I need it and how can I leverage an automated...

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Copyright © OpenSymmetry Inc. Proprietary Information

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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What is SPM ?

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How Tough Can It Be?

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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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Contact OpenSymmetry to help you!

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FurtherInformation

Jon ClarkDirector Strategy Services EMEA

[email protected]

+44 (0) 7768 558771

from strategy to success.

Date post:	16-Jan-2017
Category:	Business
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