Customer Story US Bank and OpenSymmetry success metrics for Incentive Compensation Automation and SPM Center of Excellence

1. What You Don't Know Can Hurt You:
Creating a Highly Efficient Sales Compensation Process
Kimberly Hinrichsen, VP & Director Incentive Administration, U.S. Bank
Laura Roach, CMO & VP Customer Success, OpenSymmetry

2. "The information contained is for general information only and is
not guaranteed as to accuracy or completeness. It is not intended
to be a forecast of future events or a guarantee of future results.
U.S. Bank is not responsible for and does not guarantee the
products, services or performance of third parties."

3. WHO WE ARE.
Kim Hinrichesen
VP & Director of Incentive
Compensation Administration
Laura Roach
CMO & VP Customer Success

4. Who is
u Assets ~ $321 Billion
u 3,083 banking offices
u 4,878 ATMs in 25 states
u 5th largest commercial bank in the US
u Comprehensive line of banking,
brokerage, insurance, mortgage, trust
and payment services products to
consumers, businesses and institutions
All
of
us
serving
you
Whether
your
business
is
global
or
your
world
is
local....
you
don't
just
get
one
of
us,
you
get
all
of
us
serving
you.
U.S.
Bank.

5. What did we need?
Insight to effective and optimized plan management
Corporate Wide Reporting
Analytics
Transparent Communication
Process Efficiency

6. Traditionally – decentralized
design & administration
• Large quantity of
plans
• Wide variety in plan
features
History
Incentive Compensation
Diverse placement of plan
administrators
• Lines of Business,
Finance, HR
Spreadsheet-based, some
local databases
• Business metrics from
core systems, data
warehouse, & self
reported
Then came guidance on incentive compensation governance

7. Guidance on Incentives
What is this?
• Employees (individually or in aggregate)
who may expose the company to material
inherent risk
• Balance incentives for performance with
disincentives for excessive or unnecessary
risk taking
• Risk balance features – tied to
categories of risk, related to risk
duration
• Combination of features – acceptable
frameworks
• Establish governance processes to ensure
risk balance in design, & effective
administrative implementation
• Ensure plan participants understand their
performance expectations, the risks, & the
effect of risk balance features on their
payout

8. Business Requirements
• Define a future state vision for
management of IBM Cognos ICM
Solution
• Establish transparent, auditable
enterprise view
• Conform to FRB guidance
• Ensure effective governance practices
• administration, change control,
monitoring balancing features,
communication, workflow
• Enable scalable & accurate reporting
• Identify a Business Intelligence (BI)
strategy to reporting requirements to
support corporate goals and
compliance requirements

9. Where we had to get to
• ~ 28,000 payees
• 62 plans
• 193 plan addendums
• 523 plan components
• 156 data interfaces
• 126 reports
• 72 Administrative Reports
• Employee Acknowledgement
• Rationale/explanations for use
of Discretion
• Repository of metrics and
calculations
Metric Driven Analytics
• Enhance corporate
reporting & compliance
requirements
• Centralized Data Visibility
• Direct Feed of Data
• Increased Back Testing
Frequency
• Forecast and Planning
• Business Intelligence
Framework
Optimized Organizational
Structure
Compliant Plan Administration
& PROOF OF CONFORMANCE
• Hybrid Approach
• Economies of scale
• Leverage standards
• Best practices
• Distribution of competencies
• Integration
• Increased cross-functional
relationship
• Increased operational
excellence
• ports

10. Strategy to Success:
The OpenSymmetry SPM Assessment Approach
Current State Assessment with Survey of all Comp Plans
Analysis of and recommendations for multi-phased deployment approach
Future State Road Map – People (organization), Processes, Tools, and
Technology (including multi-phased rollout)
Additional support for Governance Model for Sales Compensation
Resource planning and enablement (including training strategy &
plan)
Global reporting and business intelligence framework (Corp. &
Compliance)

11. Future State Roadmap
US
Bank
(ICM)
System
Administrator
Repor&ng
Model
6
Corporate
External
Compliance
Forecast
&
Planning
Internal
Audit
Model
1
(Ac&ve)
Phase
1:
Phase
2:
Phase
3:
Phase
7
Model
2
(Mar
2015)
Phase
3:
Model
3
(Mar
2016)
Phase
4:
Model
4
(Mar
2017)
Phase
5:
Model
5
(2017/2018)
Phase
6:
Phase
7:
USB
Resourcing
ICM
Admin
Support:
ICM
Configurator:
USB
Resourcing
ICM
Admin
Support:
ICM
Configurator:
USB
Resourcing
ICM
Admin
Support:
1
ICM
Configurators:
2
USB
Resourcing
ICM
Admin
Support:
1
ICM
Configurators:
1
USB
Resourcing
ICM
Admin
Support:
2
ICM
Configurators:
1
We needed to map out the future state,
and the road map on how to execute and
staff to achieve our long term goals

12. Hybrid Organization
Drive consistency and standardization in administration of plans
Each BL will have a dedicated champion
Hybrid Organization
IPA/IPMs
Key
Stakeholders
BL
Configura&on
Resources
BL’s
Corporate
Comp
Risk
IAGFinance TOS
HR/Legal
BL’s
BL’s
§ Key functions:
Ø Drive Plan Design Refreshes
Ø Drive System Enhancements
Ø Drive Plan Administration
Ø Corporate and Compliance
Reporting
Ø Serve as center of excellence for
ICM solution
§ Incentive Administration Group (IAG)
collaborate with other key stakeholders to
run sales compensation administration
Ø ToS
Ø Corporate Comp
Ø HR/Legal
Ø Risk
Ø Finance

13. Future State Organization
– Hybrid (Centralized/De-centralized)
– Sales Compensation Administration
Ownership
• According to 2012 SPM & Tech Survey 30% sit
in HR followed by 21% in Finance
– Sales Admin to Payee Ratio
• According to industry averages most
organizations (35%) hold roughly 3-5 FTE to
run programs; >15% have more than 10 FTES
– Data Analysts to support future IAG and
data governance
– Roles Documentation
– Training
• Training COE within IAG team; deliver
training based on audience and
implementation phase
Future State Organization

14. Moving from Disparate Data to Business Insight
US Bank Objectives to achieve Metric Driven Analysis
• Enhance Corporate Reporting & Compliance Requirements
• Centralized Data Visibility
• Direct Feed of Data
• Increased Back Testing Frequency
• Forecast and Planning
ICM
Complete
ReporRng
Data
Model
Business
Unit
Business
Unit
Business
Unit
Business
Unit
Access
Business
Unit
Excel
Advanced
Business
Intelligence
Current
State

15. Lessons Learned
• Establish a Future State Plan with priorities
• Define clear governance structure with
metrics
• Include all users not just project team or
admins in rollout. (sales, business, etc.)
• Ensure adequate resources with full time
responsibilities
• Strong advocate and executive leadership
• Investment up front will pay off when testing
and execution occurs
• Be pro-active vs. reactive
• Realize this is a change & have a change
management plan
• Defined decision making approach
• Don’t do it alone – work with experts and a
strong business partner

16. Implementation Partner
We get it.

17. Why OS Matters
From Strategy to Success we deliver results.
10 years running as the leading SPM global consultancy helping
customers “find a better way” to manage the end-to-end SPM
lifecycle
100% focus on holistic approach and long term business value of
a complete solution, not just a product implementation
165 employees and growing, makes OS the largest SPM
focused consulting firm globally.
Only Globally-Accredited IBM Partner
1,000 SPM projects across 17 countries

18. SPM Project Lifecycle
Current
State
Assessment
Future
State
Design
Business
Case
/
ROI
Roadmap
for
Change
Technology
EvaluaRon
Readiness
Assessment
Data
Management
Strategy
Resource
Planning
SoWware
ConfiguraRon
TesRng
Strategy
&
Plan
ReporRng
&
AnalyRcs
Training
&
Change
Mgmt
Early
Life
Support
Business
OperaRons
Technical
OperaRons
Vendor
Management
Full
SPM
Outsourcing
Strategy Services Technology Enablement
Project
Governance
Long
Term
Success
Decision
Strategy
Ongoing Support
1-12 Months 6-12 Months 12-36+ Months
RISK
q Is there a better way?
q What are my options?
q What would it cost?
q How do I get there?
q Are we ready to deploy?
q Can we do this on our own?
q What are my resource options?
q How long will it take?
q How do I minimize the
TCO?
q Do we have the skills to
manage the system?
q Who can I call for help?

19. That’s the OS Advantage.

20. Kim Hinrichesen
VP & Director of Incentive
Compensation Administration
Laura Roach
CMO & VP Customer Success
Q&A

21. THANK YOU