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Driving Success Through Cross-Functional Teams In Compensation Design And System Implementation


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presented at TrueConnection: Sales Performance Management Conference 2007 by Katie McConville, Director of Sales Compensation at Network Appliance

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Driving Success Through Cross-Functional Teams In Compensation Design And System Implementation

  1. 1. Driving Success Through Cross-Functional Teams Katie McConville Director of Sales Compensation Network Appliance
  2. 2. Driving Success Through Cross-Functional Teams <ul><li>Overview of Network Appliance </li></ul><ul><li>Working across functional boundaries to drive success </li></ul><ul><li>Sales Comp Design and Process at NetApp </li></ul><ul><li>Fiscal Year Transition Teams </li></ul><ul><li>Comp Design and System Implementation Process </li></ul><ul><li>Critical Success Factors – Lessons Learned </li></ul><ul><li>Final Thoughts </li></ul><ul><li>Q & A </li></ul>
  3. 3. Driving Success Through Cross-Functional Teams <ul><li>Worldwide, enterprise customers </li></ul><ul><li>Fastest growing storage company </li></ul><ul><ul><li>Outpacing the industry by 3x </li></ul></ul><ul><li>Data Center proven solutions portfolio </li></ul><ul><li>Industry-leading partners </li></ul><ul><li>Comprehensive professional services </li></ul><ul><li>Global support </li></ul><ul><li>6500+ Employees </li></ul><ul><li>Distributed in 138+ countries </li></ul><ul><li>94,000+ installed systems </li></ul>FY07: $2.8 Billion <ul><li>Fortune 1000 </li></ul><ul><li>S&P 500 </li></ul><ul><li>NASDAQ 100 </li></ul>$1B $2.0B $3.0B
  4. 4. Driving Success Through Cross-Functional Teams Network Appliance brings unmatched simplicity to the complex world of enterprise data management. <ul><li>Reduce cost & complexity </li></ul><ul><li>Minimize risk </li></ul><ul><li>Control change </li></ul>
  5. 5. Driving Success Through Cross-Functional Teams <ul><li>NetApp & Callidus Software </li></ul><ul><li>2500 Commissioned Employees </li></ul><ul><li>Dir. Sales, SE’s, PS, and Channel </li></ul><ul><li>Monthly Payrolls for all employees </li></ul><ul><li>All Calculated via TrueComp Manager </li></ul><ul><li>Global Implementation </li></ul><ul><li>Centralized Commission Acctg. </li></ul><ul><li>Distributed Comp Analysts </li></ul><ul><li>Approx. 250,000 Transactions/Mo </li></ul><ul><li>12,500,000+ Credits </li></ul>
  6. 6. Driving Success Through Cross-Functional Teams Working cross functionally is one of the most difficult things we have to do, and the most important thing we have to do to continue to lead the industry Let’s take our cross-functional temperature…
  7. 7. Driving Success Through Cross-Functional Teams Sales Force GEO Sales Operations, HR, & Compensation Teams WW Sales Comp & WW Comp & Benefits Best Practice Comp Tools & Systems Business Processes Finance & Commission Accounting Our Engagement Model
  8. 8. Driving Success Through Cross-Functional Teams <ul><li>How are you and your team different from the sales compensation teams at your competitors? </li></ul><ul><li>What are you doing to drive sales productivity through the use of compensation design and tools? </li></ul>Partnering well across functional boundaries can set you apart and drive the success of the sales comp function…
  9. 9. Driving Success Through Cross-Functional Teams How Many Teams Impact Sales Compensation Design, Process, and Tools? Executives Product Management Sales Leadership Human Resources Finance Sales Operations IT Marketing Field Sales Teams Bigger question…who doesn’t impact comp design?
  10. 10. Driving Success Through Cross-Functional Teams Plan Design System Design Participant Management Calculation & Pay Out Performance & Analytics <ul><li>Executive Vision </li></ul><ul><li>Prod Strategy </li></ul><ul><li>AOP Model </li></ul><ul><li>Organization </li></ul><ul><li>Measurements </li></ul><ul><li>Benchmarking </li></ul><ul><li>Credit Rules </li></ul><ul><li>Transaction Flow </li></ul><ul><li>Plan Types </li></ul><ul><li>Hierarchy Build </li></ul><ul><li>DW Extract </li></ul><ul><li>User Acceptance </li></ul><ul><li>Goaling Method </li></ul><ul><li>Plan Assignment </li></ul><ul><li>Hierarchy Assign </li></ul><ul><li>Goal Sheets </li></ul><ul><li>Field Training </li></ul><ul><li>Accrual </li></ul><ul><li>Calculation </li></ul><ul><li>Transaction Audit </li></ul><ul><li>Pay Cycles </li></ul><ul><li>Comm Statements </li></ul><ul><li>Adhoc Reporting </li></ul><ul><li>SOX Compliance </li></ul><ul><li>Plan Metrics </li></ul><ul><li>Plan Performance </li></ul><ul><li>Forecasting </li></ul><ul><li>Plan Modeling </li></ul><ul><li>Plan Effectiveness </li></ul>Sales Comp Review Board (WW Sales Ops, GEO Ops, Finance, Commission Accounting, HR, Comp & Benefits)
  11. 11. Driving Success Through Cross-Functional Teams Clearly Defined Ownership Clearly Defined Project Plan Clearly Defined Communication Plan HR IT Comp & Benefits HR Sales Benchmark & OTE Set DW IT Commission IT CRM IT Finance IT DW IT Commission IT Commission IT IT Owner Sales Ops – CRM CRM/Quote System & Hierarchy Sales Comp Goals and Comp Plan Roll-out Sales Ops Year End Club Reporting Corp Finance AOP – Annual Operating Plan Sales Ops Reporting Reporting Tools Commission Acctg True Comp System Implement. Sales Comp Comp Plan Design Business Owner Process Track Fiscal Year Transition Project Team Tracks
  12. 12. Driving Success Through Cross-Functional Teams Executive Steering Objectives & Direction EMEA Field Steering Team Americas Field Steering Team Japan Field Steering Team NGS Field Steering Team EMEA Core Design Team Americas Core Design Team APAC Core Design Team NGS Core Design Team Design plan components, create plans, drive global consistency, goaling methodology, T’s and C’s, and rollout plan Field Steering – Feedback Current State, Outline Sales Strategy, Brainstorm Future State, Review Plan Design, and Assist in Roll-out/Communication APAC Field Steering Team
  13. 13. Phase I: Planning SEPTEMBER OCTOBER NOVEMBER FY08 Post Mortem Meetings FY08 Sales Comp Survey Gather results of Sales Survey Finalize Timeline & Approval from Leadership EVP / VP input on Direction / Timeline Executive Steering : Strategy & Objectives Identify FST & Core Design Teams Americas FST: Week of Nov 26 >>>>>>>>>>>>>>> ACTION ITEMS & FOCUS <<<<<<<<<<<<<<< <ul><li>FY08 Feedback 08 Design </li></ul><ul><li>Sales Comp Survey </li></ul><ul><li>Finalize Peer Companies </li></ul><ul><li>Executive Buy-in on Process </li></ul><ul><li>Identify Field Steering Team </li></ul><ul><li>Salary Structure by Country </li></ul><ul><li>GEO Kick-offs for design </li></ul><ul><li>Begin Salary Ranges review </li></ul>FST Pre Work / Prep FST Kick Off: Conf Calls in November FST Kick Off Prep Finalize Peer Companies Prepare Salary Structure Workbook template & Pull Market Data into Survey Template Complete Salary Structure Workbook by Country Run EE data report Create structure (salary ranges) From completed workbooks
  14. 14. Phase II: Design DECEMBER JANUARY FEBRUARY Identify high priority Programs & strategy Changes/updates Form Program Steering Committees FST Updates: Conf Calls Week of Jan. 7 AVP / EVP Review: Progress Update (EVP Staff Meeting) Bi-weekly Core Design Meetings throughout December & January Americas FST: Week of Jan. 28 EMEA, Japan & APAC FST: Week of Feb 4 – 8 WW / NGS FST: Week of Feb. 11 FST Recap & Phase III Scheduling >>>>>>>>>>>>>>> ACTION ITEMS & FOCUS <<<<<<<<<<<<<<< <ul><li>Close on key design areas </li></ul><ul><li>Form task force for any key program areas </li></ul><ul><li>Drive Core Design team meetings </li></ul><ul><li>Ongoing FST & EVP review </li></ul><ul><li>Cont. salary structure review </li></ul><ul><li>2nd Field Steering Meetings </li></ul><ul><li>AOP Rolled Out </li></ul><ul><li>EVP/VP Plan & Salary Final </li></ul>WW / NGS FST: Week of Dec 10 EMEA, Japan & APAC FST: Week of Dec 3 - 7 Create structure (salary ranges) from completed workbooks 1 st pass of salary structures for Presentation @ FST meetings Refresh EE data and re-distribute AOP Finalized Final EVP Review
  15. 15. Phase III: System Implementation, Communication & Training MARCH APRIL MAY Comp Design & HR Leveling Complete: Mar 3 Exec Steering: Design Review & Approval FY09 Comp Plan : Communication & Roll Out to the Field Define System Requirements FY09 Comp Plan : Training/Roll Out: Train the Trainers >>>>>>>>>>>>>>> ACTION ITEMS & FOCUS <<<<<<<<<<<<<<< <ul><li>Executive Staff approval </li></ul><ul><li>System Requirements </li></ul><ul><li>FY09 Transition planning </li></ul><ul><li>Sales Focal Loaded </li></ul><ul><li>System Testing / Setup </li></ul><ul><li>Sales Focal Letters Out </li></ul><ul><li>Salary Letters Distributed </li></ul><ul><li>Goal Sheets Distributed </li></ul><ul><li>Communication & Training </li></ul>Goal Sheets Distributed Prepare Upload: FY09 Salary Structures Into PS 3/17 – OPEN Sales Focal Tool 3/30 – CLOSE Sales Focal Tool 4/20 – 5/11 Print Letters Development, Test, and Migration to Production
  16. 16. Driving Success Through Cross-Functional Teams <ul><li>Critical Success Factors – Lessons Learned </li></ul><ul><ul><li>Engage leadership early for timeline buy-in and ownership </li></ul></ul><ul><ul><li>Define influencers and decision makers early in the process </li></ul></ul><ul><ul><li>Build in the time it takes to socialize decisions & schedule people </li></ul></ul><ul><ul><li>Align the project plan with all cross-functional dependent timelines </li></ul></ul><ul><ul><li>Over-communicate at each step in the process to everyone </li></ul></ul><ul><ul><li>Don’t forget cross-functional relationships take time & energy </li></ul></ul>Avoid the Tug of War – Work as one team!
  17. 17. Driving Success Through Cross-Functional Teams