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Tag Archive for 'Sales Performance Management'

Sales Performance Management on LinkedIn

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There are many ways to find good information about Sales Performance Management and incentive compensation, and also to network with SPM professionals.  Obviously there are a few good blogs on the topic, you may also find timely information on sites like Twitter, but LinkedIn also has a surprisingly large number of groups dedicated to this space.

The LinkedIn groups are ‘forums’ where users can discuss relevant topics.  The only problem I’m noticing is that most of the time there is not a lot of discussion taking place, many of the groups are created by head hunters or companies, and several ‘discussions’ are from recruiters trying to fill a job, about a company advertising a webinar, ‘open networkers’ trying to increase the size of their network, or even about bloggers trying to drive traffic to their site (yep, guilty!).

However, once in a while there is a legitimate conversation which can be interesting, and it’s always good to be able to join a group and to be able to contact most of its members directly.

So what are the main SPM related groups on LinkedIn?

SPM Groups (non vendor-specific)

Incentive Compensation: 1475 members
Incentive Compensation Software Users: 284 members
Par for Performance: 215 members
Sales & Service Performance Management: 99 members
Sales Operations Group: 426 members
Sales Performance Management: 148 members

Related Groups
Compensation & Benefits Professionals: 1508 members
Sales Best Practices: 30,654 members
Compensation Professional Network: 1903 members
Global Compensation & Benefits Professional Network: 1217 members
Reward & Recognition Best Practices: 118 members
Sales Management 2.0: 664 members

That’s not enough?  Search the LinkedIn group for a specific incentive management solution and there is a good chance you’ll find a group dedicated to it!

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Setting Sales Quotas

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Sales quota are tricky to set because they can be affected by so many factors (and as we’ve seen yesterday, by the economy).  After all, how can we really predict how much our sales force will sell before the start of the fiscal year!  In most cases, quotas are set based on last year’s performance, growth forecasts, industry trends, and by what your competitors are doing. In the end, most of the companies have to adjust quotas mid-year to ensure that people don’t get demotivated if a majority does not reach their quota, and that the company does not go bankrupt if too many people exceed their quota.

The main problem with setting quotas based on last year’s performance is that sometimes, our predictions are not accurate…  And that’s why we need an easy way to manage these quotas, and to get the ‘big picture’ on how our sales force is performing.

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With Great Power Comes Great Responsibility

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When selecting a new SPM system - or any COTS system - people want a solution that will meet all their current needs…  but they also want a solution that will meet any of their future needs.  What are those future requirements?  They are unknown at the time of purchase.  It should not be a surprise that flexibility of a solution is often one of the top criteria for its selection.

But with great power comes great responsibility…  The more flexible a system is, the easier it will be to make design decisions during implementation that could potentially have a negative impact in the future.

Flexibility also often comes at a cost.  Many “less flexible” solutions (often SaaS solutions) are often less flexibility than other enterprise solutions.  However, they still meet all the requirements of most clients, and it is this lack of flexibility that can allow them to be deployed in a shorter time frame.

Companies should really consider how far in the future they really should be looking.  Are the requirements between today and 3 years from now really going to evolve that much?  Looking at a more than 10 year horizon for a piece of software is an eternity.  Furthermore, with an on-demand solution, it’s easy to switch to another solution at anytime… and with an on-premise solution, upgrades every 2-3 years will be required to maintain support from the vendor.

Finally, if for some reason your requirements are really so complicated that they are not supported by a leading SPM solution, ask yourself if your compensation plans really make sense.

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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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Makana Solutions Launched Web Portal

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I reviewed the new SPM solution Makana Motivator Pro earlier this year, and noted that there was a big piece missing; the portal.

One of the main advantages to implement an SPM solution is to increase visibility. Sales reps should perform better if they know exactly how they are performing, what they need to focus on, how much commission they have earned, etc. Managers also need to know how their team is performing, what could be done to improve their performance, who are the top/bottom performers, etc.

I also noted that the Makana portal was planning for the end of January… And it was delivered, as promised, on time. Before the portal, Motivator administrators had to send reports by e-mail. Now, users can just log in and access all of this information.  Not only does this reduce the burden on the administrator, it also provides more timely information to the reps.

As with the dashboards of other solutions I have reviewed, the Motivator Pro reports are interactive and allow to “drill down” the results to the transaction level. This is what the portal and the reports look like (click to enlarge):

Commission and Incentive Pay Statement – Transaction Detail

Commission Statement – Summary Information

Team Summary Report

Team Ranking Report

The portal still lacks some functionality observed in other solutions such as the ability to customize the reports to display company-specific information, a modeling feature to allow reps and administrators to play “what-if scenarios”, an “issue resolution” tool for reps to report problems with their commission, a plan communication feature to distribute plans to the reps through the portal, etc. But even with these pieces still missing, the web portal is a great step in the right direction!  It’s a great addition for Motivator Pro users and provides neat reports out-of-the-box at no additional cost.

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Webinar: Demystifying the Complexity of Sales Performance Management – Business vs Technology

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February 25, 2009
12:00 pmto1:00 pm

Host: Callidus Software and Arcadia Solutions

In the current economic conditions, many companies are being asked to do more with less resources. Learn how to optimize your Sales Performance program, and:

  • reduce the risk of missing corporate objectives
  • identify critical initiatives that will reduce time and cost
  • identify bottlenecks across technology, business process, and complex compensation plans
  • ensure your compensation plans are effective – focusing on transparency and traceability
  • get the most out of reporting and analytics
  • identify and balance business objectives with technological challenges to reduce your total cost of ownership

Who should attend:

Executives, Sales or Sales Operations Directors, and Compensation Professionals responsible for their company’s sales performance program and are looking to:

  • switch technologies;
  • have just implemented a new platform and are not receiving the forecast ROI; or
  • optimize existing technology

Click here to register

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