Modeling and Strategic Analysis Features and Functions
Modeling and strategic analysis are a subset of pay-for-performance program management tools that allow companies to model, administer, report, and analyze a wide range of metrics by using rules. These filter and calculate information by using "if-then" statements, whereby the "if" contains a Boolean expression that selects objects from the database. "Then" contains formulae that calculate and save new values. These types of filters and rules are superior to more traditional approaches that may involve some hardcoded logic or restrictive predefined compensation models, which limit compensation plans as generic, lowest-common denominator practices. The use of hardcoded logic makes it difficult to reprogram incentive strategies. The absence of modeling capabilities prevents incentive programs from being crafted quickly to meet competitive threats or executive orders. The use of modeling and strategic analysis various compensation plan scenarios to be modeled and projected revenues and each model's costs can be analyzed. This allows only the plans that fit within revenue and cost-of-sales parameters to be deployed. Modeling and strategic analysis allows companies to communicate plan details in order to better align their sales representatives with corporate sales goals. It also allows them to monitor and measure plan effectiveness on an ongoing basis. It also allows companies to adjust their plan components as needed to ensure that quota and revenue targets are achieved.
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- KPIs and metrics can be defined, tracked, reported, and made available for analysis
- Implements new sales strategies through modeling
- Shows early indications of misalignment between the corporate strategy and compensation plans
- Identifies and investigates trends
- Provides an impact analyses to changes in incentive plans
- Manages bonuses
- Manages cash profit-sharing
- Manages commission plans
- Manages combination compensation plans
- Manages commission earnings
- Manages ESOP
- Manages gainsharing
- Manages incentive wage systems
- Manages stock bonus plans
- Manages stock option plans
- Manages stock purchase plan
- Long-term planning, budgeting, and forecasting is based on current information and past trends
- Uses Microsoft Excel, Outlook, or a similar UI
- Uses dollars as a performance measure rule to manage compensation
- Uses units as a performance measure rule to manage compensation
- Uses margins as a performance measure rule to manage compensation
- Uses referals as a performance measure rule to manage compensation
- Uses retentions as a performance measure rule to manage compensation
- Uses relationship portfolio profitability as a performance measure to manage compensation
- Uses customer satisfaction as a performance measure to manage compensation
- Uses asset quality as a performance measure to manage compensation
- Uses service quality as a performance measure to manage compensation
- Uses sales accuracy as a performance measure to manage compensation
- Uses other performance measures to manage compensation
- Pre-sales modeling using potential pricing strategies with pre-sale margin and commission calculations
- Validates incentive calculations against plan documentation
- Creates or models compensation plans and quotas that use what-if scenarios to forecast the future sales activities of sales representatives and channels
- Creates or models target cash compensation plans and quotas that use what-if scenarios to forecast the future sales activities of sales representatives and channels
- Creates or models target performance plans and quotas that uses what-if scenarios to forecast the future sales activities of sales representatives and channels
- Non-standard management roll-ups for what-if scenarios, etc.
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Incentive and Compensation Management Features and Functions
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