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#AnaplanHub16
#AnaplanHub16
Agenda1. Tyco – Anaplan Backstory2. Compensation Evolution3. Constructing An Operational Model4. Internal Global Concerns
Regarding Data Security5. Creating A Coalition of Management
& Those Who Execute6. Horizontal Versus Vertical 7. Anaplan Customization8. Lessons Learned –
Expect/Plan For the Unexpecteda
#AnaplanHub16
Sales compensation challenges Anaplan solutions
Tyco – Anaplan backstory
It is difficult to determine the impact of proposed changes on plan effectiveness
300+ comp plans are managed on a decentralized global basis across 50+ locations
The compensation information for 7,000+ reps is managed in various local systems
Making changes to compensation plan component are manually intensive and prone to human error
Established a centralized sales enterprise wide web based solution for sharing sales comp plans and performance data
Robust dashboard reports and analytics to evaluate business performance and plan effectiveness for businesses and sales leaders
Easy to use scenario based planning to quickly determine the effect of proposed changes on sales comp
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“Manual Compensation”• All Compensation calculated
manually• Difficult/Painful to aggregate
reporting at a total company level
“Hybrid Compensation”• Majority/All Compensation
calculated manually• Ability to aggregate
commission performance in a centralized systems
“Fully Centralized Compensation” Design Processing Payment Reporting
Compensation evolution“Crawl” Walk Run
“Informational” Delayed Reaction Immediate Reaction
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Constructing an operational model
Excel
Access
Anaplan
Calculate Commissions• Individual Performance• By Plan Metric• Commission Payments
Provide Performance Data• Enterprise wide format• Standardized Data
submission
Evaluate and Organize Data• Review and clean files• Manage version control• Audit Business Partners
participation
Loading into Enterprise Software System
Dashboards Reporting
Sales Comp Effectiveness
Sales Comp Design
Decrease time for Modeling Auditing Reporting
Designated for all sales incentive plans
Store performance and payout data
Business Partners ( Finance/HR/Sales/Sales Ops) Compensation/Operations Team
Provide quota setting support tool
for Sales Ops
On-going operational process
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Internal global concerns regarding data security
“The ability to share basic & critical sales performance data have become increasing difficult”The data elements commonly found to calculate sales incentive and analyze sales effectiveness today could contain:
• Base Salary• Variable• Job Role/Time in Role
• Commission Paid• Results versus Quota• Performance Rating
Even within the same global company, many countries have implemented stronger laws with harsh penalties to insure data protection of employee information.
Partnering w/ Legal•Having someone from Legal be apart of the process•May be necessary to have the local legal representative for each country
sign-off on acceptance• Be prepared to:• Provide a plan on how long data is maintained•Use other means to transfer data other than email
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Creating A coalition of management & those who execute“Not every company has the same starting point.”
Initial Challenges Can Range From:
•Manual (e.g. spreadsheet) vs. Enterprise Model• Local/Silo Calculators vs. Centralized within a function•Horizontal Based Reports vs. Vertical Based Reports
This may mean asking additional work from an already stressed team trying to calculate incentives each period.
RECOMMENDATION• Create a Coalition or Partnership with Senior Leaders to provide the
ground work within their respective functions to support the project• Set the stage that generates both the foundation and permission to
become part of the “rhythm & flow” of calculators normal processes.
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Horizontal versus vertical Bob Jones (ID #202)Sales Q1 Q2 Q3 Q4 EOY
Quota (USD) 390,000 420,000 450,000 480,000 1,740,000Actual (USD) 370,000 425,000 440,000 520,000 1,755,000Achievement Quarterly 95% 101% 98% 108% 101%Achievement YTD 95% 98% 98% 101% 101%Payout% YTD 95% 98% 98% 102% 102%Weight Target Incentive 2,406 4,813 7,219 9,625 9,625Incentive Earned YTD 2,283 4,723 7,076 9,791 9,791Quarterly Payment 2,283 2,441 2,352 2,715 9,791
Name Id Period Metric Actual Quota AchievementQuarterly
AchievementYTD Payout%
WeightedTarget
IncentiveIncentive
Earned YTDQuarterlyPayment
Bob Jones 202 Q1 Sales 370,000 390,000 95% 95% 95% 2,406 2,283 2,283
Bob Jones 202 Q2 Sales 425,000 420,000 101% 98% 98% 4,813 4,723 2,441
Bob Jones 202 Q3 Sales 440,000 450,000 98% 98% 98% 7,219 7,076 2,352
Bob Jones 202 Q4 Sales 520,000 480,000 108% 101% 102% 9,625 9,791 2,715
Bob Jones 202 EOY Sales 1,755,000 1,740,000 101% 101% 102% 9,625 9,791 9,791
Horizontal Based Reporting
Pro • Spreadsheet Based Style Report• Visually Oriented For User To Quickly Comprehend
Con• Difficult to upload into a Centralized Data Structure• Difficult to Append Reports with Different Frequencies
• e.g. Monthly vs. Quarterly
Vertical Based Reporting
Pro • Easy To Append / Utilize in Template Format• Easy to Upload into a Centralized Data Structure
Con • Straight List Format Large Number of Rows
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Anaplan customization
10
“Sales Compensation Is More Than Just a Commission Payment”
Today’s Leaders Depend on Their Compensation Teams To Provide Deeper Insight into Their Salesforce Performance
This may require joining Sales Performance Data with non-Traditional based reports
Employee Performance Reviews Job Catalogs Industry Segments
This makes it critical to have a SaaS based system flexible to adapt to new data sources
Customization of this nature is Anaplan Strength
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Lessons learned – expect/plan for the unexpected
11
“New Processes Lead to New Discoveries”1
2
3
“Initial Setbacks Are Long Term Successes”
“Carve Out Time After Go-Live for the Unexpected”
• Testing &UAT are not fool-proof• Live data through a New System can sometimes lead to new
outcomes/results
• The original/manual way of processing may sometimes not have been the most accurate•New Processes normally dependent on strong logical
approach which may now identified unrealized errors.
• Pad timelines sufficiently the first 6-8 months in order provide time to deal with unforeseen data scenarios
Q A