For more details, please follow this link to the SRG website: Sales Resource Group Seminar details

There are key areas that require increased knowledge and education. These include auditing of plans to identify the gaps between where the plan is now and where it needs to be to fully support the business goals. Improved design process is another essential area for development. Too many organizations spend an afternoon in discussion about what changes should be made to the plan for the coming year. Investment in the sales compensation assessment and design processes is not only a wise investment; it is one that provides exponential returns. The need to develop experts in sales compensation is a necessity for larger, complex or multi-divisional corporations. In addition, it is crucial to educate management, both senior and sales management as well as line sales managers on how to use sales compensation effectively. It is a powerful tool if used properly, but a strong demotivator of executed poorly. Also, as companies move to create systems to manage their sales compensation, they need first to realize that without the expertise to utilize them effectively; their software and web applications will not be the panacea they expect. Communication is one additional area that needs special attention, but that is for another blog.

Dave

Tomorrow, I am in Chicago speaking to the WorldatWork Sales Compensation conference on this topic along with a client of mine, The Sun-Times Media Group (Chicago Sun Times). In the topic line, the “disruptive” nature of automating sales compensation revolves around changing the way in which sales compensation is looked at by organizations and completely revamping how it is done. Some software vendors will tell you that it is the software that makes the difference and that by installing their application, everything will be easily up and running in a few weeks and the future will be rosy. Such is not the case. Automating sales compensation is about changing the administration paradigm! It requires changes in process, behavior, data, approvals, workflow and collaboration.

Anyone who thinks that automating sales compensation is easy has not been involved in a successful implementation. It is about change … and as we all know, change is not easy it is hard, requires clarity in direction, documentation, a willingness to participate (actively) and the support of champions in the organization to ensure compliance and commitment.

Upon my return, I will let you know how the presentation went and whether or not there were any great questions asked by an audience that should have a vested interest in finding out what a disruptive technology can do to improve their sales performance.

Dave

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.