Sales Management Association Webcast How to Avoid the 5 … · 2019. 7. 3. · Today’s Speaker © 2014 The Sales Management Association. All rights reserved. Slide 3 #SalesIncentiveSystems

© Copyright 2014 The Sales Management Association.

Sales Management Association Webcast

8 October 2014

Presented by

How to Avoid the 5 Most Common

Mistakes with Sales Incentive Systems

http://ca.linkedin.com/in/fredsasshttp://ca.linkedin.com/in/fredsasshttps://twitter.com/Fred_Sasshttps://twitter.com/Fred_Sass

About The Sales Management Association

Slide 2© 2014 The Sales Management Association. All rights reserved.

A global, cross-industry professional association for sales

operations and sales management.

Focused in providing research, case studies, training, peer

networking, and professional development to our membership.

Fostering a community of thought-leaders, service providers,

academics, and practitioners.

Learn More: www.salesmanagement.org

http://www.salesmanagement.org/

Today’s Speaker


#SalesIncentiveSystems

http://ca.linkedin.com/in/fredsasshttp://ca.linkedin.com/in/fredsasshttps://twitter.com/Fred_Sasshttps://twitter.com/Fred_Sasstwitter.comtwitter.com

© Copyright 2014 The Sales Management Association.

Sales Management Association Webcast

8 October 2014

Presented by

How to Avoid the 5 Most Common

Mistakes with Sales Incentive Systems

http://ca.linkedin.com/in/fredsasshttp://ca.linkedin.com/in/fredsasshttps://twitter.com/Fred_Sasshttps://twitter.com/Fred_Sass

© 2014 IBM Corporation5

How to Avoid the 5 Most Common Mistakes with Sales Incentive Systems

Framing the issue

The five mistakes:

— Description

— What successful firms do

— Some suggestions

Questions and answers

© 2014 IBM Corporation

Many mistakes can be traced to where companies are on this SPM maturity curve

6

Scaling a Market

SPM

Co

mp

ete

ncy

an

d V

alu

e

Time

CHAOS pre-ICM

STABILIZE the operation

OPTIMIZE decisions & processes


Some attributes of best-in-class companies

7


Reports and dashboards

Compensation plans

Process flows

Automate existing bad processes in the new systemNo.1


TIP: Before building – mock-up and validate reports with the intended report consumers

9

Still needed?

How do you use this report?

Could it be simplified?

Can it be structured to replace multiple reports?


TIP: Opportunity to rethink your compensation plans before codifying in the system

10

Has a consulting firm taken a look?

Do you have too many measures?

Can you rethink your comp plans to more efficiently reuse components


Not ensuring that Sales and Finance are alignedNo.2

Sales Compensation

Plan &

System

FinanceSales


TIP: Address the natural tensions that often exist between Sales and Finance

12

Increase revenue

Reduce complexity

More time to sell

More analytics

Decrease cycle times

Reduce errors

Sales

Improve margins

Increase sophistication

More self-service

Reduce IT/admin costs

More regulation

Information faster

Finance


Forgetting about the “Management” in Sales Performance Management No.3

Which sales reps require help?

What sort of help?

What staffing changes do I need to make?


TIP: Provide reports and dashboards that enable managers to focus their efforts

14

[email protected]


TIP: Give managers (and reps) the ability to drill down to understand the metrics that matter

15


TIP: Use reporting to drive training programs

16

“(Managers) can understand, at a

glance, the productivity of all of

their associates”

“Management uses the information

about store productivity—how

many units the store sells every

hour, and how many dollars each

of those transactions is worth—to

help drive training programs”

Sr VP of Human Resources

U.S.-based manufacturer of flooring products


TIP: Start looking at it from a holistic employee lifecycle perspective

17

Profile your “A” players

Hire the best sellers

Onboard for a quick ramp

Assign quota & territory

Incent desired behavior

Process incentives

Visibility for alignment

& coaching

Learn to be a better seller

Model & deploy changes

Use analytics to close more sales


Are sales reps on the road?

How about other staff, e.g. Sales Ops?

How collaborative are the tasks?

Which tasks?

Not aligning the Incentive System to sales’ way of workingNo.4


TIP: Sales Incentive System should reflect the mobile device strategy for your sales team

19

— IT Services ManagerInsurance Company

“


TIP: Sales Incentive System should reflect the mobile device strategy for your sales team

20

“With (IBM), over 1400 of our field

sales rep can access their sales

compensation system via their

iPads along with the other tools

they use on-site with customers.

They don’t miss a beat when it

comes to understanding the

compensation implications of their

selling activities.”

VP of Sales Operations

Marketing Firm for Small Businesses


TIP: Consider IBM Concert to enable “collaboration in context”

21

Financial Planner

“Just finished consolidating inputs for the

#2015plan. @KenStone could you confirm that the

#CommissionRates are right.”

Sales Manager

“Just looking at the #NorthEastResults report. Looks like we have a problem brewing for Q3. @SteveJ

can you do some modeling to investigate commission rate changes that might boost sales?”

Compensation Administrator

“To #SalesManagers: Q3 bonuses are being

processed tonight. Be sure to chat with your reps

so they know to expect them.”


Continuing to rely on hunches

No.5

Smug notion that veterans can rely on gut feel

Do you truly understand the impact of your plan or territory changes?

What drives success?


TIP: Use Scenario Modeling to understand impact of plan changes that are being considered

23


TIP: Use Territory Management sandbox prior to enacting crediting rule changes

24


TIP: Look at recently announced IBM Watson Analytics

25

IBM Reinvents the Analytics

Experience in the Cloud

Put analytics in the hands of everyone

Make data access and refinement easier

Deliver through the cloud for agility and speed


Watson Analytics – guided tools to make analytics more accessible to business users

26


Watson Analytics – highly visual approach to understanding associations

27


Automate existing bad processes in the new systemNo.1

Not ensuring that Sales and Finance are alignedNo.2

Forgetting about the “Management” in Sales Performance Management No.3

Not aligning the Incentive System to sales’ way of workingNo.4

Continuing to rely on hunchesNo.5


Complimentary Offer: “Sales Performance Management for Dummies” eBook

29

- Chapter 1: What you need to know about SPM- Chapter 2: Seeing the benefits of SPM solution- Chapter 3: Ten things to look for in an SPM

solution

Download Your Copy:

https://ibm.biz/spm-dummies1

https://ibm.biz/spm-dummies1


© Copyright IBM Corporation 2014 All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Cognos, the Cognos logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.

Fred Sass

Marketing ExecutiveSales Performance Management

Tel: 416-987-0130 Mobile: 647-991-1272 [email protected]

ibm.com/business-analytics/spm

Questions and Discussion


Why is it so hard for the Watson

computer to beat a human on

Jeopardy? I would've thought

that'd be a no-brainer.





How can you encourage teams

to collaborate within these

systems, especially older

generation workers?





What are the data sources for

the Watson analysis product?





How can you proactively

monitor how useful SPM is to

sales management?





How are SPM systems

integrating with existing

training, coaching, and

onboarding efforts?





Do you see companies' requirements for

sales manager talent changing because of

the impact of SPM? Are competencies

changing in response to the availability of

new tools like SPM?





In your opinion, does SPM make first-line

sales managers more productive? Can a

manager handle more direct reports

because they can take advantage of SPM?





Your point about comp plan

complexity sounds like my company.

How can I convince my management

that it needs to be simplified?





You mentioned something

about the "sales ops to seller"

headcount ratio. Can you

explain that again?





Are there industries that are

better suited for these systems

than others? Are there bad fits?





Can you describe some best

practices or other suggestions

for getting quotas out sooner?





I like the maturity chart. What

percentage of companies do

you think are in that "optimize"

state on the right?



Documents

Sales Management Association Webcast How to Avoid the 5 … · 2019. 7. 3. · Today’s Speaker © 2014 The Sales Management Association. All rights reserved. Slide 3 #SalesIncentiveSystems