Increase Financial Firms' Sales Performance & Compliance with Compensation Management
-
Upload
perficient-inc -
Category
Technology
-
view
207 -
download
4
description
Transcript of Increase Financial Firms' Sales Performance & Compliance with Compensation Management
Increase Financial Firms' Sales Performance & Compliance with
Compensation Management
facebook.com/perficienttwitter.com/Perficient_IBMTwitter.com/Perficient_FSlinkedin.com/company/perficient
Perficient is a leading information technology consulting firm serving clients throughout
North America.
We help clients implement business-driven technology solutions that integrate business
processes, improve worker productivity, increase customer loyalty and create a more agile
enterprise to better respond to new business opportunities.
About Perficient
• Founded in 1997
• Public, NASDAQ: PRFT
• 2013 revenue ~$373 million
• Major market locations throughout North America• Atlanta, Boston, Charlotte, Chicago, Cincinnati, Cleveland,
Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Los Angeles, Minneapolis, New Orleans, New York City, Northern California, Philadelphia, Southern California, St. Louis, Toronto and Washington, D.C.
• Global delivery centers in China, Europe and India
• >2,100 colleagues
• Dedicated solution practices
• ~90% repeat business rate
• Alliance partnerships with major technology vendors
• Multiple vendor/industry technology and growth awards
Perficient Profile
BUSINESS SOLUTIONSBusiness IntelligenceBusiness Process ManagementCustomer Experience and CRMEnterprise Performance ManagementEnterprise Resource PlanningExperience Design (XD)Management Consulting
TECHNOLOGY SOLUTIONSBusiness Integration/SOACloud ServicesCommerceContent ManagementCustom Application DevelopmentEducationInformation ManagementMobile PlatformsPlatform IntegrationPortal & Social
Our Solutions Expertise
Introduction
Hemant JaiswalDirector of Financial Services, PerficientHemant has more than 15 years of experience in information technology and management consulting, advising a large cross-section of Fortune 500 clients in financial services. He manages Perficient’s wealth management vertical.
Chris SkinnerIncentive Compensation Management Solution Architect, PerficientChris is an industry expert in sales performance management and incentive compensation management, with more than 10 years of variable compensation plan design, configuration, reporting and solutions experience.
Industry-Driven SolutionsG
loba
l Del
iver
y C
ente
rs/O
ffsho
re D
eliv
ery
Deep Financial Services Domain Expertise
EnterpriseInformation Solutions
FinanceEnterprise Insights
PortalWeb Content
Social Solutions
SOACloud
API Solutions
Company Wide Practices
Deep Financial Services Domain Expertise
BANKINGWholesaleConsumer
Credit UnionsPayment Processing
Trust & CustodyTrade Services
Treasury Services
ASSET & WEALTHMANAGEMENT
Equities & Fixed IncomeSMA & WrapHedge FundsOMS & EMS
Portfolio ModelingPortfolio Accounting
CAPITALMARKETS
Equities & Fixed IncomeFX & CommoditiesFuture & Options
Electronic Trading
INSURANCEInvestments
Customer AcquisitionProperty & Casualty
Life Annuities ServicesClaims Evaluation
UnderwritingConsumer Direct
Business/Technology Solution
Rationalizationand Delivery
Business ProcessImprovement
Program Value,Quality and
Cost Management
ClientCentricity
Risk and RegulatoryCompliance
Finance Transformation
Solutions & Services
Impact on Financial Institutions
Compensation Regulation Considerations
Compensation Regulation Considerations
Relationship of Compensation & Risk
Compensation and risk must be tied together. The risk taker who bets firm or client capital must bet their current and future compensation.
CSO Insights - 2013 Sales Compensation & Performance Management, Key Trends Analysis
Current Compensation Environment
Spreadsheets54%
Home Grown(22%)
Commercial Software
(14%)
Manual(7%)
Analyst estimates of variable compensation overpayments range from 2% to 8% (Accenture: 3%-5%; Deloitte: 4%-7%; Gartner: 2%-8%)
Company with $30M in variable comp will overpay $600k to $2.4M every year
How are companies currently calculating
variable compensation?
Limitations of Existing Solutions
Spreadsheets Home Grown Manual
Labor intensive
Non-centralized
Error prone
Lack of auditing or reporting
Custom coding that few fully understand
Aging legacy systems
Difficult to update
Rely on additional software for reporting
No automation
No functionality
What is in an SPM Solution?
Central DatabaseHosted locally or in the cloud a single database contains the entire solution
AdministrationProvides audit tracking,
inquiry management, approval workflows
IntegrationExisting client transactional and HR data pulled in seamlessly
Integration Calculation
AdministrationDatabase
Calculation & ReportingAutomation of compensation and analytics calculations. Custom web reports display any variety of outputs
$ £€
Benefits of SPM Adoption
Reduce errors
Shorten cycle times
Replace technology
Mergers & Acquisitions
New Comp Plans
Business Re‐Orgs
Internal Audit
Compliance
Dodd‐Frank
Risk Reduction
Business Enablement
Efficiency & Accuracy
Cognos ICM
What is ICM?
Incentive CompensationBuild, model and administer variable pay programs that drive desired sales behavior
Channel Management
Gain a single, accurate view of your entire sales force and all your distribution channels
Territory ManagementManage crediting and frequent sales coverage changes across territories
Territory Management
Quota Management
Channel Management
Incentive Compensation
IBM Cognos ICMVaricent
Quota ManagementPlan and distribute quota targets efficiently across all levels of your sales organization
CRMERP HRIS
$£€
BI Other
Addressing Compensation Regulation Challenges
Incentive Compensation
Guidelines
Clawbacksand
Forfeitures
Risk Management Processes and
Controls
Communicate appropriate plan documentation to every payee and track their review and acknowledgment.
Automate the recovery of earnings previously paid out on investments now identified as having gone bad.
Multiple solutions for risk management and compliance requirements:• Workflow • Inquiry Management • Auditing
Technology System
Upgrades
Operate with
Uncertainty
Centralize all compensation processes into a single system whose backend will be dynamically upgraded in the cloud to ensure an appropriate level of support for any level of complexity.
Federal regulators have already approved ICM as a solution for these requirements.
Balance Risk Versus Reward
Modeling of future plan changes and “what-if” scenarios to aid in the development of proper plan designs.
Addressing Compensation Regulation Challenges
Industry: BankingSales Force: 5,000 payees
Challenges: Communicate role-specific sales incentives to thousands of employees across multiple geographies. Reliance on multiple legacy solutions created inefficiencies. A lack of reliable and timely reporting led to the employees performing their own “shadow accounting”
Why ICM?: Ability to centralize data shared across all compensation plans
Solution Benefits: Increased transparency in incentive tracking Payees have online access to real time reports Increased accuracy greatly reduced number of compensation inquiries Ease of compensation plan design changes ICM analytics assist in smarter compensation plan design
http://www-03.ibm.com/software/businesscasestudies/us/en?synkey=T961508R00948T94
Case Study: Bank of the West
Industry: Financial ServicesSales Force: 3,200
Challenges: Multitude of home grown systems created an IT-intensive and expensive solution
Why ICM?: Ease of design, “on the fly” scenario configuration and web based reporting
Solution Benefits: Compensation admins no longer rely on IT to make regular adjustments to the system
such as adding new product lines All results are now visible within 48 hours of closing a month instead of over two weeks
for partial results Multi-language support allows reports to be distributed to non-English regions Automated dispute resolution follows a hierarchy-based workflow
http://www-03.ibm.com/software/businesscasestudies/us/en?synkey=Z298172W48404B43
Case Study: Elavon
Questions?
Download our White Paper:http://www.perficient.com/Thought-Leadership/White-Papers/2014/Overcoming-Strategic-Challenges-of-Dodd-Frank
• Components of Dodd-Frank and various guidance principles issued by the Federal Reserve Board (FRB) and other regulatory bodies
• Sales performance management (SPM) as a solution to address these regulations
• Benefits of implementing IBM Cognos Incentive Compensation Management (ICM) as a solution to meet the regulatory requirements and guidance principles
Thank You!
For more information contact:Chris Skinner
Hemant [email protected]
www.facebook.com/perficient
www.perficient.com
www.twitter.com/Perficient_IBM www.twitter.com/Perficient_FS