By: Chris Mason, V.P. Sales, Surgesoft

It is easy to speak to value in abstract terms but how does one turn that knowledge into action? How do you make a decision to move forward with a compensation initiative with all the executives on the same page? You need to build a value proposition that is easy to translate in action. It is easy to talk about improved process but the easy path to going back to business as usual is alluring however, we are what our habits tell us we are. In order to move beyond average into excellence, your processes have to be constantly improved and compensation is the easiest place to start.

There are 3 components to a value proposition (sales commission automation):

• Capabilities
• Provides the WHEN & WHY for prospects to automate their comp system
• Drives the sales process ensuring highly motivated reps throughout the year
• Provides competitive advantage through data analytics for making quick changes to the comp plans
• Impact
• Accelerate sales and reduce employee turnover
• Gain audit capabilities for compliance purposes
• Increased revenues and higher profitability
• Costs
• Reduce I.T. administration
• Improve accuracy and shorten pay cycle
• Lower turnover

What is value? We all basically know what value is but if you rely on established business models and older technologies after there have been significant innovations in the marketplace, you are using value-inhibiting behaviors. The standard way to view value is: Benefits – Costs=VALUE

• What Benefits?
• Value improvement that automation brings
• Alignment in overall strategy
• Visibility for the reps and management in the sales data
• Decrease overpayments and improved process
• What Costs?
• All costs associated with a new solution
• Annual subscription costs
• Implementation
• Plan Design and audit

You need to find the impact in order to move on this makeover. In order to find the true impact of your compensation process, look at both the strong and weak areas.

Items to analyze

• Error rates
• Turnover
• Sales Effectiveness
• Payouts Speed
• Audit capabilities
• Reporting to the field and executives
• Access and visibility
• Integration with disparate systems
• Communication to the field
• Time Savings for Administration
• Plan Complexity and understanding

Once you have this information you can begin to see the forest through the trees, and hopefully help the executive team see the light as well.