TLFeBOOK in Software

Draw Code 128 Code Set C in Software TLFeBOOK

Rights and obligations: What rights and obligations do sales personnel have under the sales compensation program What are management s rights and obligations under the sales compensation program Personal integrity: What personal integrity expectations does management hold for sales personnel What are the consequences for not upholding these expectations

While sometimes off-handedly referred to as boilerplate, do not be fooled into thinking that these policies are unimportant or that they exist as an understanding Every sales compensation plan document should contain a policy statement section covering all of the above topics We are a small company with three sales reps Do we need all this policy stuff Well, yes Size and management style cannot abrogate your responsibilities to prepare clear and unambiguous policy statements regarding the pay plan Without such clarity, you run the risk of unpleasant legal action at worst, and distracted, wary salespeople at best

Procedures provide a step-by-step description of how to execute the sales compensation program Numerous responsible parties contribute to making the sales compensation program a success Prepare a workflow chart to communicate accountabilities and timing Each of the following subjects should have its own workflow chart:

Account assignment Quota management Sales crediting Data assembly and audit Incentive calculation Reporting Audit and assessment Exceptions and adjustments

The best documentation of procedures makes it possible for any individual to take over a task and quickly assume the duties with little disruption in execution In other words, procedures and accountabilities describe who should do what when Figure 8-1 is an illustration of a workflow chart for quota allocation This only represents a stylized example Complete workflow charts provide more detail Detailed workflow diagrams provide a road map of procedure steps and accountabilities Once approved, render these charts into action steps Publish these procedure action steps for each administrative function

What Who When Sales Management Sales Operations Field Management Sales Personnel Product Marketing Division Finance Sales Compensation Administration IT Automation Payroll

Today s compensation administrator can choose from among many automation alternatives including: desktop applications, custom solutions, dedicated applications, and program suite optionsThe selection of the right automation choice depends on information processing needs and costs Of course, as processing needs arise, so do costs both direct (purchase price) and indirect (staff and field time)

devoted to data input, processing, maintenance, and reporting Automation needs are calibrated on two variables:

Complexity: Jobs, measures, crediting rules, and mid-year program changes drive complexity Intensity: Intensity reflects the number of incumbents, transactions, and duration of measurement periods Figure 8-2 illustrates the relationship among these variables

Figure 8-3 illustrates how automation requirements differ by need Sales compensation administrators can select from among the following automation choices:

Desktop applications: Use desktop applications such as spreadsheets and simple databases when information processing needs are limited An assigned administrator keeps the desktop application up-to-date and loads the few transactions per performance period Be careful not to incorrectly extend the use of desktop applications as complexity and intensity increase Custom solutions: Whether developed internally or by an external vendor, custom solutions those crafted to serve current informa-

Limited Fewer than 50 Payees Few Jobs Fewer than 3 Measures Simple Crediting Rules Few Changes Few Transactions Quarterly Periods One Currency Manual Execution Payout Calculation Manual Control Payroll File Limited Reporting Moderate Extensive

More than 250 Payees Over 15 Jobs 10 Measures or More Complex Crediting Rules Frequent Changes Over 100k/Period Weekly/Monthly Periods Multicurrency Hands-Free Execution Input Audit/Cleansing Linked Input Loading Automatic Processing Automatic Status Updates Multi-Reporting Modeling Tools Automatic Feeds Numerous Sources Data Reconciliation Multi-Period Tracking Numerous Calculations Complex Calculations Multi-Time Periods Numerous Reconciliation Multiple Credit Events High Transaction Count Many Changes Many Adjustments Extensive Plan Updates Changing Quotas Changing Work Force Changing Territories History Files Input Audit Report Exception Reporting Management Reports Incumbent Web Reports Assessment Reports Payroll File Trend Reporting Plan Change Impact Multi-Variable Scenarios Sensitivity Testing Market Data Calibration Optimization Choices