Global Implementation Of Sales Performance Management System


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presented by Siemens PLM Software at TrueConnection: Sales Performance Management Conference 2007

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Global Implementation Of Sales Performance Management System

  1. 1. Global Implementation of a Sales Performance Management System John Seiler Director Global Sales and Services Siemens PLM Software
  2. 2. <ul><li>Siemens PLM Software </li></ul>
  3. 3. Agenda <ul><li>Siemens PLM Software </li></ul><ul><li>Sales Performance Management History at Siemens PLM Software </li></ul><ul><li>Global Expansion </li></ul><ul><li>Callidus Software Tools </li></ul><ul><li>Lessons Learned </li></ul><ul><li>Q & A </li></ul>
  4. 4. Siemens PLM Software One of 11 Independent Divisions within Siemens A&D LD Large Drives Dr. Brandes Dr. Stock (BA) MC Motion Control Systems Dr. Rathjen Höppner (BA) ET Electrical Installation Technology Schneider Kiehle (BA) CD Low-Voltage Controls and Distribution Siegers Lopez (BA) SC Sensors and Communication Kumpfmüller Platsch (BA) Group Departments AS Industrial Automation Systems Franke Dr. Böckel (BA) SD Standard Drives Helmrich Rathmann (BA) PL PLM Software Affuso Ludwig Bichara (BA) A&D Salesforce Germany: 9 Sales Regions Advanced Technologies and Standards Business Development Controlling and Accounting Corporate Information Office Global Logistics Global Procurement Group Communication Human Resources Internal Audit Legal Support, Export Control and Customs Manufacturing, Quality Management MD Mechanical Drives Egelwisse Glasemann (BA) EA Electronics Assembly Systems Lauber Dr.Gruschwitz (BA) Mergers and Acquisitions Service & Customer Support Strategic Tasks top + Office International: 58 Regional Companies 24 Regional Representatives SE Systems Engineering Dr. Ludwig Dr. Staubitzer (BA) Gierse Apitzsch Dr. Drexel Huber BA = Business Administration Sales FY 06 € 12.8 B Workforce FY 06 ~ 70,500
  5. 5. Siemens A&D Offers the Largest Integrated Product Portfolio for Industrial Automation A&D's product portfolio contains more than 137,000 products LV Power Devices, Control Products and Systems Electric Motors, Power Conversion and Motion Control Systems Sensor and Communication Systems Automation and Control Systems Industrial Software PLM, MES Siemens A&D Siemens PLM Software TIA TIP PLM Automation design Manufacturing Factory design Product design
  6. 6. Siemens PLM Software Profile <ul><li>Division </li></ul><ul><ul><li>Siemens PLM Software </li></ul></ul><ul><ul><li>Independent within Siemens Automation and Drives </li></ul></ul><ul><ul><li>HQ – Plano, Texas </li></ul></ul><ul><ul><li>Workforce of 7,750 </li></ul></ul><ul><li>Products </li></ul><ul><ul><li>Product Lifecycle Management Software & Services </li></ul></ul><ul><li>Market presence </li></ul><ul><ul><li>47,000 customers </li></ul></ul><ul><ul><li>4.3 million seats of software </li></ul></ul>
  7. 7. <ul><li>Sales Performance Management History at Siemens PLM Software </li></ul>
  8. 8. SPM at Siemens PLM Software Jan 2001 Jan 2006 Home Grown System TrueComp and TrueInformation V2.5.2 V4.2 Jun 2004 V4.2.07 US & Canada V1.7 Global Expansion TrueRes - Workflow May 2007
  9. 9. Why Callidus and TrueComp? <ul><li>Legacy system inflexible and out of date </li></ul><ul><li>SAP implementation </li></ul><ul><li>Integration to SAP </li></ul><ul><li>Web-based reporting </li></ul><ul><li>Improved accuracy </li></ul><ul><li>Sales validation prior to receipt of commission check </li></ul><ul><li>Software vendor committed to the implementation </li></ul><ul><li>Business users more in control of system </li></ul><ul><li>Lack of reliance on IT </li></ul>
  10. 10. <ul><li>Global Migration </li></ul>
  11. 11. Global Expansion – What Were we Trying to Accomplish? <ul><li>Global Sales Leadership </li></ul><ul><li>Global Consistency </li></ul><ul><li>Single Global Comp Plan </li></ul><ul><li>Automation </li></ul><ul><li>Web Based Reporting </li></ul><ul><li>Global Transparency </li></ul><ul><li>Consistent SAP Interface </li></ul><ul><li>SOX Compliance </li></ul><ul><ul><li>Transactions </li></ul></ul><ul><ul><li>Payroll Vendor </li></ul></ul><ul><ul><li>Payment Threshold </li></ul></ul><ul><li>Zone Leadership </li></ul><ul><li>Zone Autonomy </li></ul><ul><li>Disjointed Plans </li></ul><ul><li>Excel Calculation </li></ul><ul><li>Excel Reporting </li></ul><ul><li>Limited Visibility </li></ul><ul><li>Manual Interfaces </li></ul><ul><li>Limited Validations </li></ul>Old New
  12. 12. Global Expansion <ul><li>Strategic alignment </li></ul><ul><li>Focus resources to win </li></ul><ul><li>Drive performance </li></ul><ul><ul><li>Productivity </li></ul></ul><ul><ul><li>Service margin </li></ul></ul><ul><li>Stakeholder inputs </li></ul><ul><li>Executive interviews </li></ul><ul><li>GSS survey </li></ul><ul><li>Market Benchmarks </li></ul><ul><li>Competitive </li></ul><ul><li>Appropriate leverage </li></ul>Comp Plan <ul><li>Global Consistency </li></ul><ul><ul><li>Metrics and crediting </li></ul></ul><ul><ul><li>Participation </li></ul></ul><ul><ul><li>Sales payment system </li></ul></ul><ul><li>Pay for Performance </li></ul><ul><li>Software focus </li></ul><ul><li>Services collaboration </li></ul><ul><li>Individual control </li></ul><ul><li>Role Alignment </li></ul><ul><li>Job coding tied to sales and services focus area </li></ul>
  13. 13. Global Migration Project Planning Information Gathering Data Analysis Direction Setting Design Financial Modeling Transition & Implementation Planning Rollout Direction Setting Plan Design Jan 06 Oct-Dec Jan-Feb May-July Mar-Apr Aug-Sep <ul><li>Form org </li></ul><ul><li>Complete charter </li></ul><ul><li>Define objectives </li></ul><ul><li>Proj schedule </li></ul><ul><li>Survey GSS </li></ul><ul><li>Exec interviews </li></ul><ul><li>Benchmark study </li></ul><ul><li>GSS comp analysis </li></ul><ul><li>Final comprehensive analysis </li></ul><ul><li>IT system selection </li></ul><ul><li>Framework developed </li></ul><ul><li>Complete zone plans </li></ul><ul><li>Job mapping begins </li></ul><ul><li>Affordability modeling </li></ul><ul><li>IT system coding </li></ul><ul><li>CEO staff approval </li></ul><ul><li>Job mapping finalization </li></ul><ul><li>Launch </li></ul>CEO staff approvals Mar Jun Sep Oct Nov
  14. 14. Global Migration – TrueComp Updates <ul><li>US and Canada Support to 25 Countries Globally </li></ul><ul><li>Organized by Sales Zone </li></ul><ul><ul><li>Americas </li></ul></ul><ul><ul><li>Asia/Pacific </li></ul></ul><ul><ul><li>Europe – Middle East – Africa (EMEA) </li></ul></ul><ul><li>Expansion from 300 to 800 payees </li></ul><ul><li>Monthly Transactions from ~5,000 to ~20,000 </li></ul><ul><li>Multiple Currency Support </li></ul><ul><li>New Comp Plans </li></ul><ul><li>Updated Informatica Validations </li></ul><ul><li>Updated SAP Interfaces </li></ul><ul><li>Updated Reports </li></ul><ul><li>Implementation of TrueResolution – Workflow Solutions </li></ul>
  15. 15. TrueComp Organization <ul><li>Sales Leadership </li></ul><ul><ul><li>Sales Operations by Zone </li></ul></ul><ul><li>Comp Administration in Sales </li></ul><ul><ul><li>Global Director (1) </li></ul></ul><ul><ul><li>Comp Analyst in Each Zone (3 Total) </li></ul></ul><ul><li>Human Resources </li></ul><ul><ul><li>HR Business Partners in Each Country/Zone </li></ul></ul><ul><li>Finance </li></ul><ul><ul><li>Zone Controllers </li></ul></ul><ul><ul><li>Country Controllers </li></ul></ul><ul><li>IT </li></ul><ul><ul><li>Interface Programmer (1 Person Part Time) </li></ul></ul><ul><ul><li>System/Report Resource (2 people part time) </li></ul></ul><ul><ul><li>Consulting Resources as needed for Rule Writing </li></ul></ul>
  16. 16. Global Migration – Process/Responsibilities Order CSS Entry SAP Order TrueComp Interface TrueComp TrueResolution Manual Adj Error Reports Reports PCT Data Payroll Account Assignments Sales SOP IT Finance HR Comp Admin Legend Comp Plan Design GSS Mgmt SAP Recon
  17. 17. <ul><li>Callidus Software Tools </li></ul><ul><li>Key to Global Implementation </li></ul>
  18. 18. Multiple Currencies <ul><li>Global Constant Currency </li></ul><ul><ul><li>Single rate for a fiscal year to convert revenue from Local Currency to Global USD Currency </li></ul></ul><ul><ul><li>Set at the beginning of the Year </li></ul></ul><ul><li>Monthly Currency Rate </li></ul><ul><ul><li>Updated Monthly used in conversion of Payment data for reporting </li></ul></ul><ul><li>Use Lookup Table for both rates and refer in Credit, Measurement, Incentive and Payment Rules </li></ul><ul><ul><li>Most rules calculate Local, Global and Monthly rates to be used for Reporting and Incentive calculations </li></ul></ul><ul><ul><li>28 Unique Rates </li></ul></ul><ul><li>Assign Quota and Payment Currency on Participant Record </li></ul>
  19. 19. Multiple Currencies
  20. 20. Currency Identification on Participant Record <ul><li>Utilize Currency designation within rules to calculate appropriate values in both Local Currency and Global Currency </li></ul>Quota Currency Payment Currency
  21. 21. Measurements Global Currency Local Currency
  22. 22. TrueResolution – Workflow Solutions <ul><li>MS Access based tool when only US and Canada </li></ul><ul><li>Not scalable for multiple Comp Admins/Countries </li></ul><ul><li>Implemented TrueResolution – Workflow Solutions </li></ul><ul><li>Access by Business Unit </li></ul><ul><li>Manual Adjustments with Validations </li></ul><ul><li>Approval by Business Unit </li></ul><ul><li>SAP Error Processing from Interface </li></ul><ul><li>Comp Admins to Fix errors in TrueResolution then import into TrueComp </li></ul><ul><li>SOX Compliance – Control Mechanisms </li></ul>
  23. 23. TrueResolution – Summary View <ul><li>Error Transactions Listed after interface from SAP </li></ul>Order Error Transactions from SAP Line Item (Invoice) Error Transactions from SAP
  24. 24. TrueResolution – Detail Transaction View <ul><li>Select the Transaction to view Details and Errors </li></ul>Detail transaction with specific error messages for Comp Admin to review and resolve.
  25. 25. New Order Validations on fields that we have defined ensure correct data is being entered. Create New Order – Select Period and Business Unit
  26. 26. Workflow Approvals <ul><li>Approver Worklist </li></ul><ul><li>Approve – Deny </li></ul><ul><li>If Approved it can be Imported into TrueComp </li></ul><ul><li>Deny – Goes back to Reconciler for Action </li></ul>
  27. 27. <ul><li>Lessons Learned </li></ul>
  28. 28. Lessons Learned <ul><li>Start Early – give yourself enough time in decision making for plan design </li></ul><ul><li>Get buy-in early from key Stakeholders in each Country </li></ul><ul><li>Source Data Validation </li></ul><ul><ul><li>Single SAP Instance for PLM </li></ul></ul><ul><ul><li>Assumed all Zones process things the same </li></ul></ul><ul><ul><li>Data integrity issues in SAP </li></ul></ul><ul><ul><li>Data wrong then TrueComp is wrong and therefore TrueComp is the problem. </li></ul></ul><ul><li>Testing </li></ul><ul><li>Validate Reports/Datamart to TrueComp data </li></ul><ul><li>German/French Works Councils </li></ul>
  29. 29. Lessons Learned <ul><li>Payroll processing varies by Country </li></ul><ul><ul><li>Position Group processing </li></ul></ul><ul><ul><li>Finalization by Position Group </li></ul></ul><ul><ul><li>I.e. UK Payroll on 9 th of month and US Payroll around 20 th . </li></ul></ul><ul><ul><li>Much faster turnaround required </li></ul></ul><ul><ul><li>Set expectations and requirements </li></ul></ul><ul><li>Internal Audit – SOX requirements </li></ul><ul><ul><li>SAP Validations </li></ul></ul><ul><ul><ul><li>Reconciliation to Finance data </li></ul></ul></ul><ul><ul><li>Reasonableness Test </li></ul></ul><ul><ul><ul><li>Top 5 payments, Bottom 5 Payments </li></ul></ul></ul><ul><ul><li>Payroll Vendor Validations </li></ul></ul><ul><li>Communication </li></ul>
  30. 30. Q&A <ul><li>Questions? </li></ul>
  31. 31. Global Implementation of a Sales Performance Management System John Seiler Director Global Sales and Services Siemens PLM Software