oracle incentive/sales compensation – lessons learned presented by: lisa barthel-daluge creative...
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Oracle Incentive/Sales Compensation – Lessons Learned
Presented by: Lisa Barthel-Daluge
Creative Consulting Solutions, Inc.
Copyright ©2007 by Creative Consulting Solutions, Inc.
Presentation Agenda
• Lessons Learned – CRM Resource Mgr• Lessons Learned – Compensation Plan
Design/Approach• Lessons Learned - OIC Processing• Lessons Learned – Project
Team/Timeline/Structure• Questions and Answers
Lessons Learned – CRM Resource Manager
Copyright ©2007 by Creative Consulting Solutions, Inc.
Types of Individuals Compensated
CRM Reps Account Executives
External SalesAgents
Product SupportDistrict
Representatives
Corporate Management
Sales Management
Service Reps Customer Service or Sales Admin
Sales Executives
Company Wide Employees
Internal/Employee Sales Reps
Oracle Incentive
Compensation
Copyright ©2007 by Creative Consulting Solutions, Inc.
CRM Resource Manager
• Internal/External• Employees, Supplier
Contacts, Party, Partner, Other
• Import from Source
• Number of Resources• Usage of Resource
Drives Setup• Modify Other
Resources• Volume – Automated,
Data Loader or Manual
Copyright ©2007 by Creative Consulting Solutions, Inc.
Roles• Created for all
Oracle modules• Role type indicates
where it can be used
• Used to link to compensation plan
• Multiple roles
• Usually one-to-one or many-to-one relationship
• Date driven to support movement between roles/plans
Copyright ©2007 by Creative Consulting Solutions, Inc.
Groups/Teams
• Hierarchical Roll-Up• Indirect/Overlay
Credit Receivers• Roll-Across• Managerial Rollup
Check Box
• Manual or Data Loader
• Date Driven for Territory Re-alignment
Lessons Learned – Compensation Plan Design/Approach
Copyright ©2007 by Creative Consulting Solutions, Inc.
Compensation Plan Design• Start with Sales Plan or
Incentive Plan• Review each plan to
identify each plan component (I.e. 1 to 2 month process)
• Identify each primary commission driver
• Identify re-usability of plan components
• Identify data requirements for incoming transactions
Copyright ©2007 by Creative Consulting Solutions, Inc.
Variations of Incentive Plans• Account Managers
– Individual Plan Element– Lease GPM Bonus Plan
Element– New Account Bonus
Element
• DM– Individual Plan Element– Overall GPM Bonus– Lease Origination Bonus– Quarterly Consulting
Services Bonus
• Product IC– Individual Incentive Plan
Element (Upfront)– Individual 2M Bonus– System Services Bonus– Key Client Bonus
Copyright ©2007 by Creative Consulting Solutions, Inc.
Compensation Plan Structure
Compensation Plan
Plan ElementPlan Element
Revenue Class Formula and Expressions
Role
Revenue Class
Rate Table
And Dimension
Formula and Expressions
Rate Table and Dimension
Resource
RulesetRuleset
Group/Team
Copyright ©2007 by Creative Consulting Solutions, Inc.
Revenue Classes and Rules• Product Category• Type of Service or
Product Sold• New Product• High End Product• Total Product• Sales Channel• Type of Salesrep – Role
• Data Attributes• Integrated Modules• Cross-Reference
Tables or Lookups• Data Collection
Copyright ©2007 by Creative Consulting Solutions, Inc.
Rate Tables and Dimensions
• Dimensions – Percent, Amount, String
• Rate Tables – Percent or Amount
• Multi-Dimensional
• Can Setup On Formula or Plan Element
• Re-User by Customize Rates by Resource
• Date Driven
Copyright ©2007 by Creative Consulting Solutions, Inc.
Formulas and Expressions
• Mathematical Component
• Input – Rate Dimension
• Output – Commission or Bonus Amount
• Can Build Simple to Very Complex
• Inter-Dependent• Functions• Other Plan Element
Results
Copyright ©2007 by Creative Consulting Solutions, Inc.
Plan Elements
• Created by Plan Component
• Re-Use Across Plans
• Link Formula, Revenue Class, Rate Tables
• Identify the Interval• Commission or
Bonus
Copyright ©2007 by Creative Consulting Solutions, Inc.
Compensation Plan
• Created by Role• Consistent
Commission Structure
• Role/Resources Assigned to Plan
• Design Time• Year to Year• Work with Writers of
Plans
Copyright ©2007 by Creative Consulting Solutions, Inc.
Setup by Role/Resource
• Roles– Compensation Plans– Paygroup– Payment Plan
• Resources– Quotas– Rates
Copyright ©2007 by Creative Consulting Solutions, Inc.
Compensation Plan Structure
Compensation Plan
Plan ElementPlan Element
Revenue Class Formula and Expressions
Role
Revenue Class
Rate Table
And Dimension
Formula and Expressions
Rate Table and Dimension
Resource
RulesetRuleset
Group/Team
Lessons Learned - OIC Processing
Copyright ©2007 by Creative Consulting Solutions, Inc.
Vendors in OracleVendor Master orParty/Partner in
TCA
Employee inOracle HR Resource in CRM
Resource Manager
Define ResourceGroupRoleTeam
Import
Oracle Incentive Compensation
Compensation PlansRole...........................................Compensation Plan.................................ResourcePaygroup Plan Elements RatesPayment Plan Formula Quotas Expressions Rate Table Rate Dimension
Commission Processing Data Collection/Interfaces
Load Calculation Payrun
Oracle PayrollPayroll
Interface or Report
Oracle GeneralLedger
Interface orReports
Oracle OrderManagement
Oracle AccountsReceivable
Other Sources(Data Warehouse,
Other OracleSources)
Data Collection/Interface
Data Collection/Interface
Import or ManualTransactions
Oracle AccountsPayable
OIC Processing
Copyright ©2007 by Creative Consulting Solutions, Inc.
Data Collection and Load
• Open Data Collection Process
• Builds Code Within Application
• Standard Sources – Configure Additional Attributes
• Custom Sources Using Standard Configuration
• Frequency of Collection
Copyright ©2007 by Creative Consulting Solutions, Inc.
Calculation
• Frequency• Full or Incremental• By Resource
• Stages of Calculation
• Validation
Copyright ©2007 by Creative Consulting Solutions, Inc.
Payment• Paygroups
– Geography– Frequency
• Payment Plans– Min/Max– Draw– Recoverable/Non-
Recoverable
• Payruns– Resource Type– Oracle Payroll– Oracle Accounts
Payable– Other Systems
• Journal Entries
Copyright ©2007 by Creative Consulting Solutions, Inc.
Reports
• Standard Reports• Custom Reports• Data Warehouse• On-Line/Paper
• Salesrep• Management• Processing/Validation• Exception• Analytical
Lessons Learned – Project Team/Timeline/Structure
Copyright ©2007 by Creative Consulting Solutions, Inc.
Key Suggestions for Design Spend Time on Design Streamline where
possible Group into higher level
commission buckets Minimize give/take
back Minimize exceptions Settle with reps as
they move positions Be open to
adjustments of commission philosophy
Commission exactly as you do today = some customizations
Think outside the box Consistency in
structure/process Utilize rates to drive
different performance rather than different elements
Copyright ©2007 by Creative Consulting Solutions, Inc.
Lessons Learned - Timeframe
• Simplistic Sales Plan• Small # of Reps/Plans/Roles• Sales, Administrators and IT
Design Together• High Internal Knowledge of
Plans & System• Stand Alone or Post ERP
Implementation or Upgrade• Short Testing and Validation
Cycle Required• Commission Attributes
Readily Available
• Complex Sales Plan• Large # of Reps/Plans/Roles• Sales, Administrators and IT
do not Design Together• Limited Internal Knowledge of
Plans & System• Part of ERP Implementation or
Upgrade• Heavy Testing and Validation
Cycle Required• Commission Attributes Drive
Re-design of Master or Transaction Sources
Duration3 Months 12 Months
Copyright ©2007 by Creative Consulting Solutions, Inc.
Lessons Learned Project Staffing
• # 1 Key to Success• Involve Sales, Administrators and Accounting• Supplement with External SME’s• Functional and Technical Resources• More Experienced, the Better
Copyright ©2007 by Creative Consulting Solutions, Inc.
Lessons Learned 11i OIC
• 11i Vast Changes/Improvements• Plan on:
• New Knowledge Requirements• New Functionality Requirements• Elimination of Some Customizations• Re-evaluation of Capabilities if not Previously
Implemented
Questions and Answers
Contact Information:
Lisa Barthel-Daluge
Lbdaluge@ccs-i.com
763-286-2649
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