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Transcript of Jon Clark, Director Strategy Services, EMEA, Opensymmetry, presentation to E-reward conference | 12...
![Page 1: Jon Clark, Director Strategy Services, EMEA, Opensymmetry, presentation to E-reward conference | 12 May 2016](https://reader031.fdocuments.in/reader031/viewer/2022030317/587033741a28ab81258b7267/html5/thumbnails/1.jpg)
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Copyright © OpenSymmetry Inc. Proprietary Information
E-RewardGreat Plan Design and
Successful Implementation12 May 2016
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New Incentive Plans – What’s the Weather?
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“ABILITYis what you are capable of doing
MOTIVATIONdetermines what
you doATTITUDE
determines how well you do it”
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What Does Great Look Like…
Motivated Salesforce who believe they will earn commission
High retention of top salespeople
Streamlined, accurate, cost effective process
Accurate, dynamic, transparent performance reporting
Consistent and predicable sales growth
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What type of business are you?
What is your sales strategy?
What are your business objectives?
What culture do you have?
What are your competitors doing?
What sales behaviours do you
need?
What other external pressures are you
facing?
How are your customers buying
preferences changing?
Do you have the ability to
operationalise plans?
How stable is your sales organisation?
What plan design experience do you
have?
Can you manage change?
But… You Face A Complex Challenge
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Typical vs Right
ResponseSESSIONFOCUS
What Great Design Looks
Like
Cost of Getting Design Wrong
Implementation
Making It Happen
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Getting an agreed plan design launched on time
Managing with no or inflexible technology
Achieving effective, consistent processes
TYPICAL RESPONSE RIGHT RESPONSEMaking sure plan design is
driving the behaviours to support strategy
Having dynamic, flexible
technology
Optimising processes to support successful plan design delivery
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Cost Impact of Getting It Wrong
Process DesignOperationsPlan Design
No behaviour change, demotivated salesforce – lost
performance upside5-10% revenue increase
High implementation cost if plan design too complexDelayed implementation
2x implementation cost and timeline
Don’t realise admin resource savings50% of FTE cost
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++++
Benefits of Getting It Right ……
Seamless
Flexibility
Transparency 2X37%
Shorter Sales Cycles36%
25%More Sales
Reps Making Quota
7%
Quicker Sales
Lower Turnover
Faster Growth
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Principles - Based Approach GREAT DESIGN
Robust Design Process
Design to Facilitate Operations
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Diagnostic Review Design Impleme
nt
Designing for Success
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Principles-Based Design
MotivationalBehaviouralOrganisational
Link to Company GoalsMeasurability
Flexibility
Role AccountabilityTeam Alignment
Simplicity
Pay For ResultsSignificant Opportunity
Pay Differentiation
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What Does Great Design Look Like?
A few may make it, includes new starters
• More frequent targets/incentives
• Social Pressure
The group that can best move
the needle
• Tiered commission
• Prizes
Will always beat target
• Overachievement incentives
• No caps
Low Performers
Core Performers
High Performers
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Beware Negative ConsequencesDesign Feature Unintended ConsequenceMonthly quota with accelerator Sell every other monthIncentive based on customer satisfaction Seek satisfaction at the expense of salesPaid primarily on market share Actively reducing territory sizePaid primarily on sales Actively enlarge territory at expense of
colleaguesPaid primarily on units Discount away profit marginTeam incentive Relax and let others do the workCapped payout Hoard sales that would exceed the capComplex plan Ignore the planManager determines objectives and exercises judgement on objective achievement
Spend too much time influencing the manager, not the customers
Very high incentive element Sell at all costs even to customers who don’t need it
Very low incentive element Ignore the plan
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Quotas and
TerritoriesTechnolog
y
Incentive Design
Successful Implementation
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Technology Gives You a Competitive Edge
Performance Visibility● Sales Rep can
calculate commission outcome
● Sales Manager can focus coaching
● Execs make the right strategic calls
● Accurate payout
● Fewer disputes
● Focus on selling
● Reduced admin costs
● Reduced compliance risk
● Flexibility to adjust
Selling Focus Reduced Risk/Cost
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What is Your Next Move ?
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technology purchase
The OS Roadmap takes youfrom uncertainty to opportunity
selectplanevaluate implement adopt transform
that’s the advantage
unce
rtain
tyopportunity
What I Want What I Expect What I Need● Plan Design● SPM Current State
Assessment● Future State Roadmap● Implementation Readiness● Business Case
● Software Selection● Implementation Planning● Deployment● Change Management
● Business Operations● Technology Support● Process Optimization● Transformational Outcomes
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Copyright © OpenSymmetry Inc. Proprietary InformationCAPABILITY IS THE KEY!
1. Understand the Challenge
2. Ensure Effective Design
3. Invest in Technology
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ContactInfo
Jon ClarkStrategy Services Director [email protected]+44 (0) 7768.558771
from strategy to success.
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the PROBLEM
Pharma & Medical Devices Case Study
theSOLUTION• Plan Design Framework to
accommodate all roles• New Territory Alignment• Quota Setting to provide realistic
challenge
Providing research, development, production of bio-tech and pharmaceutical drug therapies.
• Needed to adapt to changing market and customer landscape
• Shift to a customer driven focus and team behaviour
• New sales organisation
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How Design Impacts Implementation ChallengeNumbers of Plans Complexity Lack of Future
Proofing• Different plans
for different roles
• Additional inclusion of MBOs
• Large Number of Additional Spiffs
• Too many plans
• Too many metrics
• Complex rules and dependencies
• Lack of plan framework
• Inflexibility
• Inability to Swap Metrics In/Out
• Different Data Sources
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Technology Can be Complex!?