Transcript PowerPoint Presentation - Oracle Incentive Compensation SIG
Oracle Incentive/Sales Compensation – Lessons Learned
Presented by: Lisa Barthel-Daluge 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 Copyright ©2007 by Creative Consulting Solutions, Inc.
Lessons Learned – CRM Resource Manager
Types of Individuals Compensated
CRM Reps Account Executives External Sales Agents Product Support District Representatives Company Wide Employees Corporate Management Service Reps Oracle Incentive Compensation Internal/Employee Sales Reps Sales Management Sales Executives Customer Service or Sales Admin 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 Copyright ©2007 by Creative Consulting Solutions, Inc.
Lessons Learned – Compensation Plan Design/Approach
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 • Product IC – Individual Incentive Plan Element (Upfront) – Individual 2M Bonus – System Services Bonus – Key Client Bonus • DM – Individual Plan Element – Overall GPM Bonus – Lease Origination Bonus – Quarterly Consulting Services Bonus Copyright ©2007 by Creative Consulting Solutions, Inc.
Compensation Plan Structure
Role Compensation Plan Plan Element Plan Element Resource Group/Team Revenue Class Ruleset Formula and Expressions Rate Table and Dimension Revenue Class Ruleset Formula and Expressions Rate Table And Dimension 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
Role Compensation Plan Plan Element Plan Element Resource Group/Team Revenue Class Ruleset Formula and Expressions Rate Table and Dimension Revenue Class Ruleset Formula and Expressions Rate Table And Dimension Copyright ©2007 by Creative Consulting Solutions, Inc.
Lessons Learned - OIC Processing
Vendors in Oracle Vendor Master or Party/Partner in TCA
OIC Processing
Employee in Oracle HR Import Resource in CRM Resource Manager Define Resource Group Role Team Oracle Order Management Data Collection/ Interface
Oracle Incentive Compensation Compensation Plans
Role...........................................Compensation Plan.................................Resource
Paygroup Plan Elements Rates Payment Plan Formula Quotas Expressions Rate Table Rate Dimension
Commission Processing
Data Collection/Interfaces Load Calculation Payrun Interface or Reports Interface or Report Oracle General Ledger Oracle Payroll Payroll Oracle Accounts Payable Oracle Accounts Receivable Data Collection/ Interface Other Sources (Data Warehouse, Other Oracle Sources) Import or Manual Transactions 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 Copyright ©2007 by Creative Consulting Solutions, Inc.
Lessons Learned – Project Team/Timeline/Structure
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
• • • • • • • 3 Months Duration 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 • • • • • • • 12 Months 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 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 Copyright ©2007 by Creative Consulting Solutions, Inc.
Questions and Answers
Contact Information: Lisa Barthel-Daluge [email protected]
763-286-2649