Zach Burnett, Worldwide Sales Leader SPM, IBM, presentation to E-reward conference | 12 May 2016

sales performance managementSPM

IBM Sales Performance Management

Zach Burnett, IBM Worldwide Sales Leader for Sales Performance Management


IBM WatsonInsights

Foster Top-Line Growth

• 60% more selling time

• 5-6 additional selling hours per month

Drive Operational Efficiencies

• 50% less compensation administration

Eliminate Overpayments

• 3-8% of compensation costs are overpayments

• 90% reduction in overpayments

1 2 3

IncentivesIBM SPM

Corporate Strategy Results

IncreaseRevenue

DecreaseCosts

Customer/EmployeeSatisfaction


Transforming Variable Compensation Processes To Achieve Efficiency, Alignment and Growth

A Forrester Total EconomicImpactTM StudyCommissioned ByIBM

The Total EconomicImpactTM Of IBM IncentiveCompensationManagement Solution

Project Director:Adrienne CapaldoProject Contributor:Jon EricksonApril 2016

FORRESTER


Benefits of IBM SPM

R E D U C T I O N O F …

Assumptions: 1100 hrs/admin per commission cycle, 2125 hrs/variable comp admin + 60 hrs/bonus admin, 3overpayments account for 2% of annual revenue, 41 hr/rep per month, 5120 hrs/auditing event, 6Typical legacy system is $60,000.

Time Spent on Payment Process by 60%1

Time Spent on Implementation & Rollout of Variable Comp Plans by 75%2

Overpayment Errors by 90%3

Time Spent on Shadow Accounting by 60%4

Time Spent on Auditing and Compliance Needs by 75%5

Spend on Legacy Systems6


Business Value

ROI:204%

NPV:$6,015,916

NPVPer user:$3,008

Payback:13 months

Financial Summary Showing Five-Year Risk-Adjusted Results

Source: Forrester Research, Inc., April 2016Based on a composite organization that has an annual revenue of $2.2b, 12,000 employees, sales staff of 2,000, and annual variable compensation spend of 4.5% of annual revenue.


Who Do Rewards & Incentives Impact?

Back Office Staff

Direct & Indirect

Networks

Contact Center Staff

Distribution Experts

Implementation Staff

Sales People

Executive Pay


CustomersCustomers


Adam Baker Commission Manager Close Brothers
