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Leveraging On-Demand Compensation Management In A Global Environment


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presented at TrueConnection: Sales Performance Management Conference 2007 by Mike Todd, Executive Director of Operations at Lenovo

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Leveraging On-Demand Compensation Management In A Global Environment

  1. 1. Mike Todd Executive Director of Operations Lenovo Leveraging OnDemand Compensation Management in a Global Environment
  2. 2. <ul><li>Company Overview </li></ul><ul><li>Challenges with Compensation Management </li></ul><ul><li>Callidus Partnership Solution </li></ul><ul><li>Lessons Learned </li></ul><ul><li>Summary </li></ul>Agenda
  3. 3. <ul><li>Company Overview </li></ul>
  4. 4. Lenovo Then and Now <ul><li>Lenovo in 1984 </li></ul><ul><ul><ul><li>Founded by 11 researchers </li></ul></ul></ul><ul><ul><ul><li>Initial Investment: US $25,000 </li></ul></ul></ul><ul><li>Lenovo Today </li></ul><ul><ul><ul><li>20,000+ employees </li></ul></ul></ul><ul><ul><ul><li>Revenue: US $14 billion+ </li></ul></ul></ul>Company Overview
  5. 5. Lenovo’s Core Innovations… Design Ease of Use Total Cost of Ownership Reliability & Quality Security Company Overview
  6. 6. Since 2005, Lenovo has… closed the acquisition of the IBM PC Division in record time became a $14 billion global PC leader made an unprofitable business profitable reached record high share in China accelerated innovation across the product line increased customer satisfaction Company Overview
  7. 7. Page 11 of 13 Lenovo Completing Second Massive Hardware Delivery for Beijing 2008 Games 3/29/07 Lenovo Visibility Company Overview
  8. 8. <ul><li>Challenges with Compensation Management </li></ul>
  9. 9. Challenges with Compensation Management <ul><ul><li>What we had… </li></ul></ul><ul><ul><ul><li>Large, complex, inflexible </li></ul></ul></ul><ul><ul><li>What we have now… </li></ul></ul><ul><ul><ul><li>Flexible, simplified, reliable </li></ul></ul></ul><ul><ul><li>Where we are going… </li></ul></ul><ul><ul><ul><li>Full analytics capability, more frequent reporting </li></ul></ul></ul>
  10. 10. <ul><li>Legacy System </li></ul><ul><ul><li>Was too complex </li></ul></ul><ul><ul><ul><li>Multiple processes and systems, no single business owner </li></ul></ul></ul><ul><ul><li>No sales plan flexibility (quarterly sales plan support) </li></ul></ul><ul><ul><li>No integrated issue management </li></ul></ul><ul><ul><li>Extended processing time (3-4 days) </li></ul></ul><ul><li>Why Callidus? </li></ul><ul><ul><li>Single process / system </li></ul></ul><ul><ul><li>Very flexible – Supports Lenovo business model </li></ul></ul><ul><ul><li>Compensation statement based on input by Lenovo Sellers </li></ul></ul><ul><ul><li>Integrated Issue management </li></ul></ul><ul><ul><li>Provides Technical and Business Ops Support (OnDemand) </li></ul></ul>Challenges with Compensation Management
  11. 11. Maintain IBM Legacy Process and System Accelerate Enterprise Bus SAP Strategic Solution Implement Tactical (non-IBM) Solution Select Deployment Strategy Implement Tactical (non-SAP) Solution for US Lenovo Installed - Lenovo Managed Vendor Hosted - Lenovo Managed Vendor Hosted - Vendor Managed The Decision Making Process Functionality Architecture Alignment Select Vendor Solution Select Outsourcing Model Challenges with Compensation Management Time Cost
  12. 12. <ul><li>Callidus Partnership Solution </li></ul>
  13. 13. <ul><li>True Comp Suite </li></ul><ul><li>Data privacy/security </li></ul><ul><li>Business controls support </li></ul><ul><li>Flexibility </li></ul><ul><li>Application expertise </li></ul><ul><li>Global OnDemand staff </li></ul><ul><li>Solid IT infrastructure </li></ul><ul><li>24/7 Operations support </li></ul><ul><li>Simplified sales reports </li></ul><ul><li>Issue management </li></ul><ul><li>Analytics reporting </li></ul><ul><li>Business controls </li></ul><ul><li>User satisfaction improvement </li></ul><ul><li>Detailed Operations Handbook </li></ul><ul><li>Single managed infrastructure </li></ul><ul><li>Lenovo-Callidus alliance </li></ul>Lenovo Callidus Our Partnership Solution <ul><li>Accurate commission </li></ul><ul><li>payments </li></ul><ul><li>Attainment reporting </li></ul><ul><li>Business analytics </li></ul><ul><li>Flexibility </li></ul><ul><li>Rapid deployment </li></ul><ul><li>Regain sales confidence </li></ul><ul><li>Align to WW HR IT </li></ul>Requirements Capabilities Callidus Partnership Solution
  14. 14. January 2007, Americas (US/Canada/Latin America - 13 countries) April 2007, EMEA Phase 1 (6 countries) July 2007, EMEA Phase 2 (15 countries) November 2007, Canada April 2008, Asia Pacific 2 nd half of 2008 EMEA/US/Latin America May 2007, Asia Pacific (15 countries) October 2007, EMEA Phase 3 (9 countries) Lenovo’s Deployment Schedule of Callidus Lenovo Strategic <ul><li>Begin using True Analytics </li></ul><ul><li>Begin implementing Callidus Territory Management </li></ul>Callidus Partnership Solution
  15. 15. <ul><li>Lessons Learned </li></ul>
  16. 16. <ul><li>We were successful because </li></ul><ul><ul><li>Accountability </li></ul></ul><ul><ul><ul><li>Worldwide business owner </li></ul></ul></ul><ul><ul><li>Vision </li></ul></ul><ul><ul><ul><li>Detailed project plan with clear milestones </li></ul></ul></ul><ul><ul><li>Execution </li></ul></ul><ul><ul><ul><li>Onsite project manager </li></ul></ul></ul><ul><ul><ul><li>Frequent checkpoints </li></ul></ul></ul><ul><li>Challenges we overcame </li></ul><ul><ul><li>Knowledge differences </li></ul></ul><ul><ul><li>Country “unique” requirements </li></ul></ul><ul><ul><ul><li>Privacy laws </li></ul></ul></ul><ul><ul><ul><li>Non ASCII character sets </li></ul></ul></ul><ul><ul><ul><li>Currency code conversions </li></ul></ul></ul><ul><ul><li>Data management / reporting </li></ul></ul>Lessons Learned
  17. 17. <ul><li>Summary </li></ul>
  18. 18. <ul><li>Necessity to move from a complex / inflexible system </li></ul><ul><ul><li>Single vs. multiple processes / systems </li></ul></ul><ul><ul><li>Worldwide business owner led the project </li></ul></ul><ul><li>Short time frame to make the transition </li></ul><ul><li>Strong teamwork </li></ul><ul><li>Results: </li></ul><ul><ul><li>Accurate commissions payments </li></ul></ul><ul><ul><li>Simplified / understandable reporting </li></ul></ul><ul><ul><li>Improved Customer / user satisfaction </li></ul></ul><ul><ul><li>Improved efficiency through one system </li></ul></ul>In conclusion… Summary