Streamlining the Quota Process

              Jim Parker
 Director, Global Sales Compensation
              Novell, Inc.
About Novell




  • Global infrastructure software and services company
  • We help customers lower costs, manage complex...
The Widow Maker




                  © 2007 Novell Inc. – Proprietary & Confidential
Quota management market trends


 • Majority of companies leverage quota-based incentives
        77% h
            have q...
Common quota-setting pain points


  • Inefficient
           Lack insight to trends and historical data
       •
        ...
The way it was . . .


  • Inefficient
          Manual, spreadsheet based
          Manual spreadsheet-based process
    ...
The way it was . . . continued


  Inconsistent/Inaccurate
         Limited f
         Li it d enforcement of sales strate...
Quota-setting process and methodologies




                                               (2) Roll-down
                 ...
Corporate planning and quota-setting



                         Quota

                      Coverage
                   ...
Corporate planning and quota-setting



                         Quota
                                                   ...
The Solution: Business Process Change + TrueQuota


  Standard process and methodologies, managed by a shared
  service or...
The Solution: Business Process Change + TrueQuota


  TrueQuota: Rules-based system and single data source
         Single...
The Implementation


 • Tool/vendor selection
    • C llid
      Callidus
    • Lattice Engines
    • Synygy
 •RRequiremen...
The Results


  Americas Quota-setting Process
       S
       Suggested quotas automatically calculated f all employees
 ...
Critical Success Factors


  •   Management buy-in
  •   C t li d process
      Centralized
  •   Dedicated resource who u...
Q&A




      jim.parker@novell.com




                        © 2007 Novell Inc. – Proprietary & Confidential
Upcoming SlideShare
Loading in …5
×

Streamlining the Quota Process for a World-Class Sales Organization

2,980 views

Published on

presented at TrueConnection: Sales Performance Management Conference 2007 by Jim Parker, Director of Global Commissions at Novell

Published in: Business, Technology
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,980
On SlideShare
0
From Embeds
0
Number of Embeds
31
Actions
Shares
0
Downloads
0
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Streamlining the Quota Process for a World-Class Sales Organization

  1. 1. Streamlining the Quota Process Jim Parker Director, Global Sales Compensation Novell, Inc.
  2. 2. About Novell • Global infrastructure software and services company • We help customers lower costs, manage complexity, and mitigate risk, allowing them to focus on business innovation and growth • We provide global leadership in: Enterprise-wide operating systems based on Linux and • OpenSource • Security and systems management services required to operate and i d integrate mixed-source environments id i • $1 billion annual revenue; 4,000 employees; 800 incentive-based employees in 40 countries © 2007 Novell Inc. – Proprietary & Confidential
  3. 3. The Widow Maker © 2007 Novell Inc. – Proprietary & Confidential
  4. 4. Quota management market trends • Majority of companies leverage quota-based incentives 77% h have quota-based sales i tb d l incentive plans ti l • • Use a combination of quota-setting methodologies 69% use territory potential/opportunity • • 65% use sales management projections • 60% refer to historical data • And they change them frequently 56% of organizations adjust q g j quotas during the y g year • • Changes in territories or customer base (39%) • Shifts in business, economy, or industry (33%) Source: Hewitt Associates; Market Study of 224 Large Corporations, June 2001 © 2007 Novell Inc. – Proprietary & Confidential
  5. 5. Common quota-setting pain points • Inefficient Lack insight to trends and historical data • Very tedious and time-consuming task for sales management and • finance Manual process with many handoffs and corrections • Inconsistent and unorganized process • Inaccurate • No standardized quota setting methodology quota-setting • Insufficient data and few analytical tools • Difficult to assess quota-setting consistency and fairness • Inflexible • Difficult to adjust to market and/or organizational changes • Difficult to get continuous performance feedback • © 2007 Novell Inc. – Proprietary & Confidential
  6. 6. The way it was . . . • Inefficient Manual, spreadsheet based Manual spreadsheet-based process • 60 worksheets from Board to rep • De-centralized, time-intensive, labor-intensive • 50 people involved over 4-5 months for 800 sales people in 40 countries pp pp • Multiple consolidations and manual validations • • Inflexible Lack of Management visibility to status of quota-setting process and quota • coverage Quota changes time-consuming and cumbersome, particularly in EMEA • No automated linkage between related or dependent quotas • Low sales rep confidence in validity of quota; numerous quota disputes • © 2007 Novell Inc. – Proprietary & Confidential
  7. 7. The way it was . . . continued Inconsistent/Inaccurate Limited f Li it d enforcement of sales strategy, coverage model, or comp tf l tt dl • plans Inconsistent application of quota-setting methodology • Significant differences in quotas for same roles and pay levels • (E/R, E/Q) Multiple, divergent sources of historical data • Calculation/clerical errors • Limited enforcement of quota transfer when accounts or territories • moved © 2007 Novell Inc. – Proprietary & Confidential
  8. 8. Quota-setting process and methodologies (2) Roll-down (3) Roll-across (5) Assignment, Feedback, (4) Reconciliation Adjustment, Signoff (1) ( ) Roll-up Methodologies •Role based (e/r) •Role-based •Territory/opportunity-based Territory •Roll-up (Named accounts, •Roll-down Postal codes, Industries, •Roll across •Roll-across Lines of business, etc.) © 2007 Novell Inc. – Proprietary & Confidential
  9. 9. Corporate planning and quota-setting Quota Coverage Assignments Compensation Plans Sales Strategy / Coverage Model Financial Plan Corporate Strategy © 2007 Novell Inc. – Proprietary & Confidential
  10. 10. Corporate planning and quota-setting Quota Widow makers Coverage Assignments Compensation Plans Sales Strategy / Coverage Model Financial Plan Corporate Strategy © 2007 Novell Inc. – Proprietary & Confidential
  11. 11. The Solution: Business Process Change + TrueQuota Standard process and methodologies, managed by a shared service organization Global quota process owner, who is part of the Global • Commissions team Centralized process (80%) with field review and fine tuning (20%) (80%), • Consistent quota-setting methodologies by role across the globe; • standard policies for changes, uplifts, discounts “Quota Handbook to provide transparency to sales managers Quota Handbook” managers, • reps, and finance Standard quotas for similar roles and pay levels • Proactive management reporting ( g p g (status, q , quota coverage, E/R) g, ) • © 2007 Novell Inc. – Proprietary & Confidential
  12. 12. The Solution: Business Process Change + TrueQuota TrueQuota: Rules-based system and single data source Single Si l system f all quotas, f t for ll t from corporate fi t financial plan t i l l to • individual rep quotas System enforced compliance with the coverage model, comp • plans, plans and policies Automated link between related quotas—change once, update • everywhere Management approval via electronic workflow • Quota vs. financial plan reporting; in-depth quota analysis • Online quota delivery and acknowledgement • Direct integration with TrueComp • * Features in red are not yet available in TrueQuota © 2007 Novell Inc. – Proprietary & Confidential
  13. 13. The Implementation • Tool/vendor selection • C llid Callidus • Lattice Engines • Synygy •RRequirements, solutioning, implementation i lii il i • 4 months start to finish • Two full-time consultants (1.5 FTEs); 1.5 Novell FTEs • Staged roll-out (Americas, EMEA, APAC) • On-time (mostly) and on-budget • Hardware and software Three servers (dev, test, prod); HP 4 processor boxes • • Oracle database; Tomcat webserver • TrueQuota (Hyperion Planning) based on number of payees © 2007 Novell Inc. – Proprietary & Confidential
  14. 14. The Results Americas Quota-setting Process S Suggested quotas automatically calculated f all employees td t t ti ll l l t d for ll l • based on role/plan • All adjustments captured, documented, and reported • Process time • 4 business days for first-line review, adjustment, and approval • 1 day for Americas CFO analysis and sign-off • 1 day for Americas President review and sign off sign-off • 1 day for CFO/EVP review and sign-off Quota setting for EMEA and APAC begins this week Q if d bi hi k © 2007 Novell Inc. – Proprietary & Confidential
  15. 15. Critical Success Factors • Management buy-in • C t li d process Centralized • Dedicated resource who understands the big picture • Up-stream processes well-defined and deadlines met • Clearly-defined, well-designed methodologies/mechanics • Solid implementation team; application experts © 2007 Novell Inc. – Proprietary & Confidential
  16. 16. Q&A jim.parker@novell.com © 2007 Novell Inc. – Proprietary & Confidential

×