Acquiring, retaining and motivating the right talent continues to top the list of challenges identified by CFOs and other C-Suite executives at companies of all sizes. Incentive compensation plans that miss the mark can damage any company’s profitability, and even put the future of a company at risk. Yet, despite with the availability of data to better understand the behaviors of customers and those tasked with engaging and managing them, incentive compensation design and management still often fails to get its due.
Join us as Erik Charles, Principal Incentives Strategist, Xactly explains the science of an effective incentive compensation program including the essential components of its DNA.
Kenya Coconut Production Presentation by Dr. Lalith Perera
Science of Incentive Compensation Programs DNA Works
1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
The Science of Incentive
Compensation Programs: The
DNA of What Works
2. Learning Objectives
After attending this event you will be able to:
• Identify specific areas of improvement for your
company’s incentive compensation programs
• Benchmark your company’s incentive compensation
design elements and processes relative to companies
whose plans impact their bottom lines
• Identify opportunities to better align your company’s
incentive compensation processes and technology to
drive more profitable sales
3. Welcome to Proformative
Proformative is the leading educational resource for corporate finance
professionals.
Announcing the new Proformative Academy:
• On demand video courses taught by peers and SMEs
• Over 125 finance and accounting courses and growing rapidly
• CPE for CPAs, CMAs, CTPs, and CIAs
Check it out at www.ProformativeAcademy.com
4. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
The Science of Incentive Compensation
Programs: The DNA of What Works
Erik W. Charles, Principal Incentives
Strategist, Xactly
7. SOME OF THE DATA ELEMENTS
WE ARE ANALYZING
QUOTAS
Quota Amount – Primary Plan Component
Quota Amount – Secondary Plan Component
PLAN DESIGN
Plan Component Weights
Target Incentive
VARIABLE PAY & RATES
Total Variable Pay
Variable Pay – Primary Plan Component
Variable Pay – Secondary Plan Component
Commission Rates – Primary Plan Component
Commission Rates – Secondary Plan
Component
REP PERFORMANCE
Quota Attainment – All Plan Components
Quota Attainment – Primary Plan Component
Quota Attainment – Secondary Plan Component
8. Forecasting
Accruals
Security
Workflow
Auditability
Sales Rep Visibility
Exec Scoreboard
Finance Dashboard
Mobile
Analytics
CONTROL & RISK
MANAGEMENT
ANALYTICS, REPORTING
& COMMUNICATION
Benchmarks
Plan Design
Goal Alignment
Modeling
Quotas
Driving Behavior
Integration
Configuration
Automation
Adaptability
Communication
STRATEGIC PLANNING
& DESIGN
CALCULATIONS
& ACCURACY
Territories
Scalability
Adjustments
9. STRATEGIC PLANNING & DESIGN
Do you model the potential impact of plan
designs?
How often do you benchmark against peer
firms?
Are rep goals in alignment with company
goals?
Are quotas and territories designed, or
negotiated?
Can YOU make the changes necessary?
Benchmarks
Plan Design
Goal Alignment
Modeling
Quotas
Territories
Driving Behavior
10. STRATEGIC PLANNING & DESIGN
We use empirical data sources
when designing our incentive plans
What data do you leverage when designing new plans?
Prior period
data
Current
period data
3rd party
performance data
3rd party
incentive data
Benchmarks
Plan Design
Goal Alignment
Modeling
Quotas
Territories
Driving Behavior
Importance 1 2 3 4 5 6 7
12. The Science of Incentive Compensation
Programs: The DNA of What Works
Thank you for your interest in this presentation.
View the on-demand webinar or download the full
presentation at:
www.Proformative.com
Hinweis der Redaktion
Our 9 year journey. We have had conversations with thousands of executives like you.
Approx. 500 of our 700 customers.
STRATEGIC PLANNING & DESIGN: We believe incentives drive the right behavior thus helping companies achieve their objectives when they are designed using up-to-date, empirical data and tested in different scenarios.
Related Xactly Products: Xactly Insights, Xactly Objectives, Xactly Quota
CALCULATIONS & ACCURACY: Trust in the incentive compensation process is critical to driving the right behavior. We believe plan design, workflows and calculation of your incentives compensation program needs to run smoothly, accurately and with confidence allowing your company both to grow successfully and to adjust to changing business environments.
Related Xactly Products: Xactly Incent & Express
CONTROL & RISK MANAGEMENT: It is critical to reduce risk to your incentive comp process while taking control over your incentive compensation information. Accruing expenses accurately, forecasting future incentive spend and insuring your information is safe and secure are all part of taking control of and reducing risk to your incentive compensation.
Related Xactly Products: Xactly Incent & Express
ANALYTICS, REPORTING & COMMUNICATION: To drive the right behavior and achieve company goals, incentives have to be visible, available and understood. Delivering visibility and analysis to sales reps, executive teams and finance leaders is a critical aspect of a world class incentives process.
Related Xactly Products: Xactly Incent & Express, Xactly Analytics, Xactly eDocs
STRATEGIC PLANNING & DESIGN: We believe incentives drive the right behavior thus helping companies achieve their objectives when they are designed using up-to-date, empirical data and tested in different scenarios.
Related Xactly Products: Xactly Insights, Xactly Objectives, Xactly Quota
WCCO are constantly assessing new compensation strategies, contests, and SPIFs to drive behavior to match changing corporate goals.