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Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel- Daluge Creative Consulting Solutions, Inc.

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Page 1: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Oracle Incentive/Sales Compensation – Lessons Learned

Presented by: Lisa Barthel-Daluge

Creative Consulting Solutions, Inc.

Page 2: 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

Page 3: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Lessons Learned – CRM Resource Manager

Page 4: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 5: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 6: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 7: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 8: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Lessons Learned – Compensation Plan Design/Approach

Page 9: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 10: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 11: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 12: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 13: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 14: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 15: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 16: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 17: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Copyright ©2007 by Creative Consulting Solutions, Inc.

Setup by Role/Resource

• Roles– Compensation Plans– Paygroup– Payment Plan

• Resources– Quotas– Rates

Page 18: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 19: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Lessons Learned - OIC Processing

Page 20: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 21: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 22: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Copyright ©2007 by Creative Consulting Solutions, Inc.

Calculation

• Frequency• Full or Incremental• By Resource

• Stages of Calculation

• Validation

Page 23: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 24: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Copyright ©2007 by Creative Consulting Solutions, Inc.

Reports

• Standard Reports• Custom Reports• Data Warehouse• On-Line/Paper

• Salesrep• Management• Processing/Validation• Exception• Analytical

Page 25: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Lessons Learned – Project Team/Timeline/Structure

Page 26: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 27: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 28: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 29: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

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

Page 30: Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc

Questions and Answers

Contact Information:

Lisa Barthel-Daluge

[email protected]

763-286-2649