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Monthly Archive for February, 2009

Sales Comp Administration Practices Survey

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I mentioned last week that OpenSymmetry was just about to launch their Sales Performance Management survey. I have the pleasure to announce that it was launched today! I don’t like to advertise any company (even when it’s my own firm), but I contributed to write this survey and I really believe it will provide tremendous insight into Sales Compensation trends…  And as with any survey, the more people participate, the more meaningful the results will be.

OpenSymmetry Sales Compensation Survey

You should take this survey to:

  • gain further insight into your own organization’s compensation practices
  • make valuable comparisons between your company’s compensation practices & market norms, and
  • enhance or redesign your current compensation policies and programs

So go take the survey now… it will only take about 15 minutes.

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Funny Sales Performance Video of the Week

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Which SPM Vendor “Sucks” the Most?

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Every day some people are landing on LeapComp by searching for “[vendor name] sucks”, “which SPM vendor sucks”, etc. I thought I would share my perspective on this matter. I think I probably got some attention?

I don’t think that any sales performance compensation vendor can claim that 100% of their customers are very satisfied with their solution. There is often at least a few people who have had a bad experience and like to believe that it’s all the vendor’s fault.  So what else can cause an SPM project to fail?

Look in your own yard
Did you nail down the requirements properly? Was the scope well defined and communicated? Did the scope slowly creep up until the project was an entirely different beast? Did new requirements enter the picture? Did you support the implementation team adequately by providing them with all the documentation, information, access to subject matter experts, etc, in a timely manner? Did your team provide the required help when necessary and actively helped out with the implementation efforts? Was the schedule reasonable or did you have try to cut corners by skipping over some planning or testing efforts?

Not the right solution?
So maybe from your implementation-support perspective, everything was flawless. So could the problem be that the solution you selected didn’t meet your needs? If you do a poor job at defining the project scope and high level requirements before selection a commercial solution, how will you know if it really meet your needs. Ahh, but that’s the Catch 22! How are you supposed to really know all your needs without knowing more about the solutions? Maybe you KNOW that you want to do analytics, but you don’t really know what the application can do for you exactly… So you end up selecting a solution claiming to have best-of-breed analytics only to realize that it can’t do what you want. Read my vendor selection posts for more ideas on how to select the vendor who will best meet your needs. Hint: I think it’s a good idea to get help from someone who knows what they are talking about and who have worked with many SPM solutions… but I could be biased, that’s one of the things I do for a living.

Maybe it was your implementation partner that was not so great?
Could you do all this and still have a failed project? Yes! You spent all this time selecting a vendor, but how much time did you spent selecting an implementation partner? Maybe you just assumed that a big system integrator like Accenture and Deloitte were the best because they are already working with your company on other projects. Or maybe you selected the cheapest company on the block. Maybe you just selected the vendor’s implementation team thinking they must be those who know their products the best. I would assert that even more important than selecting the right solution, you must ensure that there is a good fit with the implementation partner you select. After you choose a solution, you won’t need many interactions with the vendor; but with the system integrator, you will need to work with them for some time! Do your homework, check their references, find out other companies who have used their services and ask them about the outcome of the project. I wrote another short piece about choosing an implementation partner where I discuss some pros and cons of large companies, versus vendors, versus boutique consulting firms.

In conclusion, before deciding to exclude a vendor from your search based on some horror story, consider that any failure to an enterprise system integration can be caused by many factors, and that the vendor is [usually] never fully responsible for the failure.  Also make sure that you select the best implementation partner.  Finally, support them well during the implementation.

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Sales Compensation Survey Time!

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I find it’s a good idea to participate in surveys because it’s often the only way to get a full copy of the results and not only an executive summary.  Sure, you usually have to share some contact information, but you’ll rarely get more than a follow up call from the vendor / system integrator / management consulting company…  That’s a small price to pay for all the valuable information you will gain from dozens of companies!  And don’t we all want to know how we compare to the market!

Makana just released a short survey for small business owners and sales managers.  If you are curious about what others are doing to cope with the recession, or if you’d like to find out how much other small business usually pay in sales compensation as a percentage of revenues, you should participate.   The deadline is coming soon - this Friday, February 13th, 2009!

OpenSymmetry is also going to release a sales compensation survey very shortly and I will provide a link as soon as it’s up.  If you want to gain further insight into your own organization’s compensation practices and make valuable comparisons between your company’s compensation practices & market norms, keep an eye on this blog for the link, or send me an e-mail and I’ll send you the survey invitation directly.

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Xactly “steals” Salesforce.com President as CFO

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Steve Cakebread, New Chief Financial and Administrative Offer at Xactly

Steve Cakebread, New Chief Financial and Administrative Offer at Xactly

Xactly announced minutes ago that Steve Cakebread has joined Xactly as CFO. Steve was the president and chief strategy officer at Salesforce.com for the past 6 years, and helped grow the company from $22 million in annual revenue in 2002, to $749 million in 2008.

We heard last week that Steve had left Salesforce.com. He now joins a company in a market where all vendors will collectively earn about half of the Salesforce.com revenues. That’s a good indication that others also believe the Sales Performance Management market has tremendous growth opportunities!

What makes Steve Cakebread a particularly interesting fit for this position is that he led salesforce.com through its initial public offering in 2004… Could this be one of the reason Xactly recruited him?

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Tips for SaaS Contract Negotiations, and Knowledge Transfer

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I came across an article this weekend which I found very interesting. “In SaaS contract negotiations, focus on customization, future pricing” offers a few tips on negotiating SaaS contracts.

Tip 1: Before investing in a lot of customization work, figure out how to take it with you if you switch providers
Tip 2: When writing the terms of your initial contract, negotiate renewal terms
Tip 3: Make sure there is room for renegotiation in your exit clause
Tip 4: Write in compensation terms for use of your data
Tip 5: Work with your legal team on the terms that will allow you to break the contract

I think that the most useful piece of advice is part of tip # 1. If you read the article, it says to document the customization made, and to ensure that the third party system integrator helps you with the transition.

Knowledge transfer is not something that happens near or around go-live. Knowledge transfer is not something that takes place when the implementation partner is about to leave. Knowledge transfer is not something that is done only in case that you need to switch to another solution.

For a project to be successful once it is deployed, knowledge transfer should take place throughout the project lifecycle. Most Sales Performance Management solution implementations rely on the vendor or on a 3rd party system integrator to configure the solution. This is the perfect opportunity to work WITH the experts, and learn as much as possible on how to implement and maintain your SPM solution.

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