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8/12/2019 060612 Avaya PPI TeleTrack

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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%


7/207AvayaProprietary. Use pursuant to your signed agreement or Avaya policy.

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



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



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



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%



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



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



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



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]



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]



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
https://partner.avaya.com/ptlWeb/bp/so/CS200982010758377012https://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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