Guest post from Brad Burnaman, Cognos SPM Industry Solutions Executive, IBM Business Analytics
A strong sales engine is what drives organizations to succeed in a competitive marketplace, yet many organizations are held hostage by costly and error-prone systems and processes that often demotivate sales people.
Ensuring that the sales team can count on their compensation being paid accurately and on-time is mission critical now more than ever.
Yet there tends to be a perception that incentive compensation management is easy. How hard can it be to get the checks out on time?
The truth is, incentive compensation programs are as varied as the companies that create them, with quotas, territories, complex commission rate structures, and products all constantly shifting. And don’t forget that sales people want a constant stream of information about how all these factors impact their compensation.
It is an incredibly complex problem, and how it is solved directly impacts the revenue generating sales engine of the company. Sales people will tell you that accurate and timely payment is one of their top causes of job frustration. Yet many companies are still trying to manage all this with outdated software that doesn't match real business processes, or worse still, via spreadsheets.
Business leaders are increasingly discovering that to remain competitive, they must have a Sales Performance Management (SPM) solution to improve critical sales related processes such as commissions management, quota planning and territory management.
One of our recent clients related to me that the key driver behind their move to an SPM solution was to gain a competitive edge in the marketplace. The new system allowed them to roll out strategic changes in commissions more quickly and provide transparent communication on compensation details with their sales people. Business executives saw this as a strategic initiative, and pressed forward to revamp their commission program despite trying economic conditions.
They were rewarded with sales people wholeheartedly embracing the new system. Sales are up and costs tied to sales team attrition fell as the turnover rate among the sales team improved.
They discovered what we constantly reinforce with our clients – there really is no better time for an improvement in sales compensation management than today.
I’ll be discussing this in more detail at the upcoming IBM Connect conference (January 27–31 in Orlando, Florida). Follow along via Twitter at #IBMConnect.
For more information:
· Attend my session at IBM Connect (Tuesday, Jan. 29 from 4:15-5:15 pm ET), “This is the time to embrace Sales Performance Management”
· Learn more about IBM’s solutions in sales performance management
· Watch a brief demo of IBM’s sales performance management solution
· Download additional information on a variety of industry specific solutions