Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Streamlining the Quota Process for a World-Class Sales Organization

3,078 views

Published on

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

Published in: Business, Technology
  • Login to see the comments

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

×