060612 avaya ppi teletrack
TRANSCRIPT
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Welcome
Harry Finer, Director of Annuity Services | Westcon
Barbara Wellons, Director of Distributor & Partner Performance | Avaya
Ryan Jozwiak, PPI Program Manager | Westcon
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Partner Performance Incentive ProgramUS & Americas International
Westcon PPI Tele TrackJune 6, 2012
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3AvayaProprietary. Use pursuant to your signed agreement or Avaya policy.
Partner Performance IncentiveImproved Incentives for Co-Delivery Partners
What Is It?
Maintenance support incentive program for Avaya co-delivery partners globally
Intended to provide economic benefits for co-delivery partners selling Support
Advantage services
Rebates provided to co-delivery partners who demonstrate best in class on-time
renewals rates and reduced case submissions
High Level Details
Partners must be authorized to sell co-delivery services
Partner performance will be measured across the entire portfolio of offers
Rebates will be calculated quarterly and applied to Support Advantage co-
delivery contract (new or renewal)Two levels of rebate payout (Base & Plus) will be available based on On-TimeContract Renewal and Case Submission performance
Timing
Quarterly evaluation of partner performance metrics
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Partner Performance IncentiveMetric Calculation
On-Time Contract Renewal Rate In alignment with Avayas on-time renewal policy, on-time contract renewal rate provides
a 30 day grace period and applies to all partner wholesale and co-delivery contracts(both Avaya Red and Blue - SS/SSU/JSD, PSS, PASS, Express, SA)
The On-time Renewal calculation is as follows.
Numerator: The sum of contract bill value for all expiring contracts renewed within
30 Days of expiration date (e.g. all Dec expirations are measured up until the end ofJan)
Denominator: The sum of contract bill value up for renewal for the month beingmeasured
Case Submission Definition
The basic calculation is a ratio of PASS, JSD, and SA Co-delivery cases closed in aquarter divided by average licenses under co-delivery contract during the quarter.
Co-delivery cases and contracts for Data and SME products are not in scope
PSS and nPower Co-delivery cases and contracts are not in scope
Zero hour SRs are excluded
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Partner Performance IncentiveRebate Payout Thresholds and Details
(Note: Each rebate can be earned independently, for a potential total of 30%)
DetailsRebate is applied to all SA Co-delivery contract value (new and renewal) for the quarter based oncontact start date
Tier 1 partner rebate to be based on actual net contract/PO value
Tier 2 partner rebate on list price less standard partner discount as an estimated for net contract value Standard partner discount is 35% for Platinum, 31% for Gold, and 29% for Silver
The source for contract value will be contract bookings
On multiyear terms the rebate will align with payment. If paid in advance; rebate paid on entirecontract value. If paid annually, rebate paid annually.
Avaya will identify multi-year, prepaid contracts cancelled prior to the final year of the contractterm. Partner rebates will then be adjusted to reflect actual contract value, with amount due
Avaya either being withheld from a future rebate or separately invoiced.
Rebate Level RenewalThreshold Case Submission Threshold RenewalRate Rebate Case SubmitRate Rebate
Plus >90% < 10 cases per 10K licenses per quarter 15% 15%
Base 80-90% 10-15 cases per 10K licenses per quarter 8% 8%
65-80% 15-20 cases per 10K licenses per quarter 0% 0%
Minimum 20 cases per 10K licenses per quarter disqualified
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Promotion SummaryAvailable for qualified orders placed 3/1 to 6/30
Continuation of the 5% commission bonusfor Support AdvantagePreferred Retail orders.
Guaranteed Partner Performance Incentive (PPI) rebate of 23%(replacing the standard 15% PPI case submission rebate) delivered onassociated Support Advantage co-delivery purchases.
Offers US Support Advantage co-delivery Partners a guaranteed rebate toallow stability of planning for required attach product orders
Allows US Partners to plan their financials using a guaranteed minimumrebate of 23% while analyzing their first 3 quarters of on-time renewal andcase filtration performance trends
Provides US Partners additional interval to maximize on-time renewal
performance to achieve higher rebates
Rebate
Level
Renewal
Threshold
Renewal
Rate Rebate
March-June
Guarantee
Plus >90% 15%
23%Base 80-90% 8%
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Guaranteed Partner Performance Incentive (PPI)
rebate of 23%
What is it? How does it work?
For qualified orders placed by USPartners Avaya will replace thestandard Partner PerformanceIncentive for Case Submission
with a guaranteed 23% rebate.During this period the earned
renewal rebate will be paidaccording to standard programterms for a total rebateopportunity of 38% (23% + 15%
for on-time renewal)Rebate can be earned even if the
partner does not meet theminimum co-delivery thresholdsfor renewals and casesubmissions
Definition of Qualified Orders:
Purchase Order for SA co-deliveryservice must be received between01 Mar 201230 Jun 2012
Contract billing must start by 01Aug 2012 in accordance withstandard indirect Day 1 billing
Calculated at standard programmethodology
Applied to co-delivery bill value
Payout based on contract startdate
Rebate will be paid on standard PPIrebate schedule
Partner must continue to meet Avaya
Connect co-delivery requirements
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Support AdvantageSA Preferred Retail Commission Promotion
Existing Preferred Retail Commission Promotion extended
5% additional commission for US partners eligible to sell Preferred RetailSupport Advantage offers
Applied to all orders submitted and billed by 1 January 2013
OfferStandard
Commission*
Additional
Commission
Total
Commission
Preferred Retail 17.5%** 5% 22.5%
* = Standard discounts (013%) must be used to qualify for listed commission** = Platinum example. Standard commissions range from 13% - 17.5% based
on partner medal level
NEW
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Notes
PPI rebates will be paid to eligible partners on a quarterly basis based on contract start date
This reporting routine will deliver a fresh set of metrics each month.
Management Reporting will follow the reporting availability noted above with distribution targeted forthe 3rdweek of the month
Partner Performance IncentiveRebate Payout Timeline
Performance Program Milestone4FQ11 KPIs
1FQ12 Rebate
1FQ11 KPIs
2FQ12 Rebate
2FQ11 KPIs
3FQ12 Rebate
3FQ11 KPIs
4FQ12 Rebate
PerformanceMeasure Performance Measurement period
FY11 Q47/1/119/30/11
FY12 Q110/1/1112/31/11
FY12 Q21/1/123/31/12
FY12 Q34/1/126/30/12
Interim Performance Metrics (2 months ofcase submission, 1 month of renewal)
n/a n/a 3/19/12 6/15/12
Interim Performance Metrics (final case
submission, 2 months of renewal)
10/28/11 (actual) 1/30/12 (actual) 4/16/12 7/16/12
Final Performance Metrics Distributed 12/14/11 (actual) 2/12/12 (actual) 5/18/12 8/16/12
Associated
Rebate
Contract start date period for rebatecalculation
FY12 Q110/1/1112/31/11
FY12 Q21/1/123/31/12
FY12 Q34/1/126/30/12
FY12 Q47/1/129/30/12
Rebate payout 3/12/12 5/7/12 8/6/12 11/5/12
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Partner Cost PlanningDriving Predictability Into Channel Pricing
(Note: Each rebate is earnedindependently, for a total rebate
opportunity of 38%)
Partner Should Account for Rebate in Cost Calculation
Partner should focus on Renewal Rate and Case Submission Rate they can maintain going forward
Example; Platinum Partner earning 35% up front discount targets Minimum 80% Renewal Rate (8%from above)and Guaranteed Case Submission Rate of 23% for a total PPI rebate of 31%
List Price of Service $100.00
Net Price (Platinum Discount) $65.00
Rebate Planned (31%) ($20.15)
Net Price Post Rebate $44.85
By focusing on key performance elements a partner can create a competitive advantage in themarket, drive higher margins and create stability in cost planning.
Upside potential beyond the 31% plan falls to the bottom line.
Rebate
Level
Renewal
Threshold
Renewal
Rate Rebate
March-June
Guarantee
Plus >90% 15%
23%Base 80-90% 8%
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AABC Communications
ABC Communications
1. Measurement Period provides themonths for which case closures andrenewal opportunities are captured.AprilJune represents all data forAvaya fiscal quarter 3
2. Reporting Date is the date that theperformance report was run
3. Cover sheets will note months
included for each metric4. The final report of the quarter will be
noted as indicated
5. The cover sheet includes the On-time renewal rate and associated
PPI rebate rate
Case submission rate andassociated PPI rebate rate
The total Rebate payout opportunity;If not qualified for a PPI rebatepayout the limiting metric is noted
Only the final quarterly metric appliesto the PPI rebate and Co-delivery
requirements
Partner Performance Cover Sheet
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Case Submission Backup
Active License Countrepresents the number oflicenses under aqualified co-deliverycontract (i.e. JSD, SA, &
PASS) for the reportingperiod.
Service Numberrepresents the case idfor cases closed againstqualified co-deliverycontract for the reportingperiod.
Contract Number forthe contract under whichthe associated case was
opened
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On-time Renewal Rate Backup
Partner ID represents the Business Partner Link ID corresponding to thecontract renewal opportunity.
Contract represents the contract id for a contract which had an end dateduring the reporting period.
End Date on the contract that was up for renewal
Companyrepresents whether the contract was initiated on heritage NES(AVNES) or Avaya Classic product
Ship To for the contract under
Renewal; NoNot renewed by end of month following the end date; Yes
counted as an on-time renewal
AVNES
AVNES
AV
AV
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Partner Performance IncentiveQueries
Should a partner or Avaya associate have a question regarding the SA PPI program,
the following contacts has been established:
[email protected] general/process questions
Metrics Query
Should a partner, or their Avaya representative, have a question regarding specificmetrics data/reporting
A PPI Metrics Query Form should be completed to provide requesters contactinformation, query description and also information required. This form is posted onthe Avaya Partner Portal
Once completed, the form is submitted to [email protected]
All the queries will be centrally handled by the Global Maintenance Analytics Team
PPI Metrics Query Form & Guidehttps://partner.avaya.com/ptlWeb/bp/services/SV0497/PromotionsProgram
mailto:[email protected]://partner.avaya.com/ptlWeb/bp/services/SV0497/PromotionsProgramhttps://partner.avaya.com/ptlWeb/bp/services/SV0497/PromotionsProgrammailto:[email protected] -
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Partner Performance IncentiveEscalation Request
Escalation Process
Should a partner, or their Avaya representative, not receive a satisfactoryresponse for a query or request regarding SA PPI metrics or rebatepayments
A PPI Escalation Form should be completed for any escalation related to
the SA PPI program. This form is posted on the Avaya Partner PortalOnce completed, the form is submitted to [email protected]
This process has been established to provide a disposition from AvayaClient Services Business Unit and Theater leads.
PPI Escalation Form & Guidehttps://partner.avaya.com/ptlWeb/bp/services/SV0497/PromotionsProgram
Escalations may only be submitted by CAM or SDM
mailto:[email protected]://partner.avaya.com/ptlWeb/bp/services/SV0497/PromotionsProgramhttps://partner.avaya.com/ptlWeb/bp/services/SV0497/PromotionsProgrammailto:[email protected] -
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Co-Delivery EligibilityPartner Performance Metrics
A more detailed definition of Embedded Base Attach and PartnerPerformance metrics are available in the Avaya Connect PartnerPerformance Guide. This document is referenced by the Avaya ConnectSolutions Authorization Policy Guide, Both documents are located on the
Avaya Connect portal
Portal>Partner Programs>Avaya Connect>Program Requirements.
https://partner.avaya.com/ptlWeb/bp/so/CS200982010758377012
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Metrics Communication Process - Global
GlobalAnalytics Team& ServiceBusiness Unit
Channel
Operations
ChannelAccount Mgr& in U.S.Service AccountMgr
Co-deliveryPartner
Prepare PPImetrics andsupportingfiles
Upload to PPISharepoint andinform ChannelOperations onreadiness
Download CAM-aligned PPImetrics file fromSharePoint
Distribute topartner andreview in regularmeeting - MBRor QBR
Review themetrics andbackup files
Complete thePPI Query formand send [email protected]
Process therequest andrespond backto the partner
Metric questions*
Query andEscalationProcess
Query
closed
QueryClosed?
No
Complete theEscalation Form
and send toPPIreview@avaya
.com
* General PPI questions are submitted to the Partner Help Desk
Also distributedto SAMs for USSI/SP & VAR
partners
Service BU &Theater leadsreview & respondto escalation
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
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Partner Performance IncentiveFurther Info
Further details on the program are available in the PartnerPerformance Incentive Rebate Guide, which is posted on the AvayaPartner Portal at Portal>Services>Services A-Z>Support
Advantage>Promotions and Program Descriptions
http://portal.avaya.com/ptlWeb/services/SV0497/PromotionsProgram
Information on Avaya Connect Co-delivery authorization is available atPortal>Partner Programs>Avaya Connect>Program Requirements.
https://partner.avaya.com/ptlWeb/bp/so/CS200982010758377012
http://portal.avaya.com/ptlWeb/services/SV0497/PromotionsProgramhttps://partner.avaya.com/ptlWeb/bp/so/CS200982010758377012https://partner.avaya.com/ptlWeb/bp/so/CS200982010758377012http://portal.avaya.com/ptlWeb/services/SV0497/PromotionsProgram -
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Westcons PPI Management Program
1. Establish a Program for the Business Partner
Business Partner to designate a Program Manager
Review Year 1-3 Installed Base
Request Installed Base from Avaya
2. Leverage Avayas 120 Day CVR Reports Prepare Target Lists by Quarter
3. Prepare Pro-Active Quotes in advance of Expirations
4. Provide Summary Lists to manage opportunities
CVR Report
Left to Get Report
5. Leverage Westcons Pro-Active IVR System (PIVR)
6. Westcon Mentor to assist Business Partner w/PPI
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