Workshop on riding the maturity curve on SPM and how to achieve future state design

1. World
at
Work
September,
2013
Riding
the
Maturity
Curve
Sales
Compensa,on
Best
Prac,ces
for
Program
Administra,on

2.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Welcome
to
Open
Symmetry’s
Cer<fica<on
Course
(Please
find
your
group
and
sit
in
your
area
for
team
exercises)
2

3.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Agenda
Introduc<on
3:00-­‐3:05
p.m.
OS
2013
Sales
Performance
and
Technology
Survey
Highlights
3:05-­‐3:20
p.m.
About
Sales
Performance
Management
(SPM)
Assessment
3:20-­‐3:35
p.m.
Exercise
1
–
SPM
Case
Study
–
Challenges
and
Pain
Points
3:35-­‐3:55p.m.
Break
3:55-­‐4:00
p.m.
SPM
Maturity
Model
4:00-­‐4:20
p.m.
SPM
Self
Assessment
4:20-­‐4:40
p.m.
Change
Management
4:40-­‐4:450
p.m.
Exercise
2
–
SPM
Case
Study
–
Change
Management
4:50-­‐5:05
p.m.
Break
5:05-­‐5:10
p.m.
Self
Assessments
-­‐
Read
Outs
5:10-­‐5:30
p.m.
Wrap
Up
5:30-­‐5:35
p.m.
1:1
with
Speakers
(Op-onal)
5:35
p.m.
onwards
3

4.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Introduc<on
4

5.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Course Moderators
§ Laura
Roach,
Chief
Marke5ng
Officer,
OpenSymmetry
§ Ray
Wolf,
Senior
Vice
President,
Professional
Services,
OpenSymmetry
§ Iffat
Mushtaq,
Senior
Director,
Global
Strategy
Services,
OpenSymmetry
5

6.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
About the Course
§ The
course
is
designed
to
be
Interac-ve
§ The
concepts
covered
here
are
“real”
and
“applica-on-­‐ready”
§ Offers
an
opportunity
to
share
cross
func-onal/
cross
industry
Insights
§ Offers
an
opportunity
to
apply
concepts
to
case
studies
§ Encourages
self
assessment
6

7.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Course Objectives
§ About
SPM
Assessment
§ SPM
Industry
Thought
Leadership
§ Where
is
my
company
at
on
the
SPM
maturity
model?
§ Where
does
my
company
need
to
be
on
the
maturity
scale
(future
state
design)
based
on
industry
benchmarking/best
prac<ces?
§ What
elements
of
SPM
Maturity
modeling
do
I
need
to
consider?
§ How
do
I
get
to
my
future
mode
of
opera<ons?
7

8.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Personal Objectives (2 - 3 mins)
§ What
do
you
hope
to
learn?
§ What
do
you
want
to
take
back
to
your
office?
§ How
do
you
want
to
grow
professionally?
8

9.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
2013
Sales
Performance
and
Technology
Survey
Highlights
9

10.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Course Objectives
§ About
SPM
Assessment
ü SPM
Industry
Thought
Leadership
§ Where
is
my
company
at
on
the
SPM
maturity
model?
§ Where
does
my
company
need
to
be
on
the
maturity
scale
(future
state
design)
based
on
industry
benchmarking/best
prac<ces?
§ What
elements
of
SPM
Maturity
modeling
do
I
need
to
consider?
§ How
do
I
get
to
my
future
mode
of
opera<ons?
10

11.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
2013 Sales Performance and Technology
Survey
§ Plan
Design
§ Plan
Administra5on
§ Repor5ng
and
Analy5cs
§ Technology
Used
and
New
Investments
11

12.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Key Highlights: Plan Design
According to the survey, the responsibility of designing the compensation plans
still lies primarily within the Sales Operations
Sales
Compensa<on
Administra<on
owner
:
2013
12

13.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Key Highlights: Plan Administration
Which of the following best describes how sales compensation administration
(not design) is managed within your organization?
13

14.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Key Highlights: Plan Administration
The biggest challenges in plan administering continue to be large number of
manual adjustments, a high degree of complexity of the sales compensation
program, and data issues
14

15.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Key Highlights: Plan Administration
Effectiveness of the sales compensation administration processes is mostly
measured by comparison of incentive payouts to budget and by the accuracy rate
Op<on Percentage
Incen5ve
payouts
in
rela5on
to
budget 77.5%
Accuracy
rate 50.0%
Time
to
payout
each
period 42.5%
Number
of
ques5ons
from
the
field 45.0%
Response
5me
to
field
requests 32.5%
Audit
Scores 40.0%
Sales
5me
spent
on
compensa5on
issues 30.0%
Ra5o
of
total
administra5on
cost
to
sales 27.5%
Other 12.5%
N/A 0.0%
Modes
of
evalua<ng
the
effec<veness
of
the
sales
compensa<on
administra<on
process
:
2013
15

16.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Key Highlights: Plan Administration
How many full-time equivalent employees (FTEs) from the business side are
involved in administering the sales compensation program?
16

17.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Key Highlights: Analytics
What is the single biggest challenge for providing sales and performance pay
reports to plan participants at this time?
17

18.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Key Highlights: Technologies Used
Value Percentage
Excel 76.7%
Third
party
so[ware 41.1%
Custom/Home
grown
solu5on 30.1%
Access 13.7%
Outsourced 2.7%
Other 8.2%
N/A 5.5%
Technologies
to
support
sales
compensa<on
administra<on
:
2013
Microsoft Excel continues to be prevalent tool of for sales comp admin for most
companies; ~ 70-80% respondents in the last four OS Industry Survey
76.7% of respondents use Excel to support compensation
management
84.9% use Excel for the annual planning cycle, and
73.9% use Excel for sales compensation reporting and
87% use Excel for sales compensation analytics.
18

19.
OpenSymmetry
Proprietary
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-­‐
Confiden<al
Key Highlights: Technology Investments
What are the key issues affecting your decision?
19

20.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
Key Highlights: Technology Investments
%
Respondents
Spend
more
5me
ensuring
data
feeds
are
clean
and
accurate
23.0%
Streamline
work
processes
prior
to
implementa5on
13.1%
Deliver
more
repor5ng
and
analy5c
insight
13.1%
Create
a
more
complete
defini5on
of
business
requirements
before
vendor
selec5on
13.1%
Ensure
plan
designs
are
finalized
prior
to
beginning
implementa5on
11.5%
Ensure
more
involvement
of
sales
compensa5on
analysts
during
implementa5on
11.5%
Ensure
credi5ng
rules
were
be^er
documented
9.8%
Review
incen5ve
plan
design
before
implementa5on
8.2%
Conduct
more
thorough
tes5ng
prior
to
moving
the
system
into
produc5on
8.2%
Allocate
more
5me
to
get
the
so[ware
installed
and
configured
8.2%
Provide
more
staffing
during
implementa5on
(internal
IT
and
sales
opera5ons)
6.6%
Ensure
incen5ve
roll-­‐up,
roll-­‐over,
or
roll-­‐down
data
is
fully
documented
prior
to
implementa5on
6.6%
Things
to
be
done
differently
during
recent
sales
compensa<on
technology
investment
:
2013
20
ü
Note – <5% truncated

21.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
About
Sales
Performance
Management
21

22.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Course Objectives
ü About
SPM
Assessment
ü SPM
Industry
Thought
Leadership
§ Where
is
my
company
at
on
the
SPM
maturity
model?
§ Where
does
my
company
need
to
be
on
the
maturity
scale
(future
state
design)
based
on
industry
benchmarking/best
prac<ces?
§ What
elements
of
SPM
Maturity
modeling
do
I
need
to
consider?
§ How
do
I
get
to
my
future
mode
of
opera<ons?
22

23.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
What is SPM? Why is it Important?
Sales Performance Management is a rigorous approach to
optimizing resources to improve sales performance and ultimately
drive sustained competitive advantage for the company. It
leverages:
§ Advanced Strategies
§ Streamlined Processes
§ Optimized Organizational structure
§ Next-generation technologies, and
§ Measurable metrics
Over 81% of sales reps achieve their annual quota at companies that
emphasize SPM, while lagging companies typically see only 25% of their reps
achieve these quota goals.
Additionally, these best-in-class companies that apply SPM also have 3x
higher annual growth in revenue than lagging companies.
23

24.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Some common SPM issues
§ Complex
Plan
Designs
Ø 42%
of
the
“2013
Sales
Performance
and
Technology
Survey”
respondents
§ Inaccuracies
and
Manual
Adjustments
Ø 18%
of
companies
es5mated
their
error
rate
to
be
5%+;
Gartner
and
other
sources
es5mate
an
error
rate
of
4-­‐7%
across
industries
§ Lack
of
Op5mized
Repor5ng
Ø As
per
2013
OS
survey,
“Time
to
generate
reports”
(24.6%)
and
“data
quality”
(29%)
are
the
biggest
challenges
in
business
intelligence
Ø 50%
of
the
respondents
claimed
that
they
had
li^le
to
no
repor5ng
in
place
§ Need
for
Transparency,
Accountability
&
Flexibility
Ø 22%
of
respondents
in
the
“2013
Sales
Performance
and
Technology
Survey”
highlighted
inflexibility
of
current
systems
as
a
challenge
Ø 76%
of
the
respondents
reported
using
excel
for
sales
compensa5on
administra5on.
24

25.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Benefits of SPM Assessment
§ An
objec5ve
and
unbiased
analysis
of
the
company’s
end-­‐to-­‐end
SPM
program
§ SPM
processes
benchmarked
against
industry
best
prac5ces;
targeted
improvement
opportuni5es
§ Understanding
of
what
Key
Performance
Indicators
are
needed
to
measure
and
drive
efficiencies
in
the
company’s
SPM
Program
§ Understanding
of
what
technology
to
invest
in
and
when
to
make
that
investment
§ A
roadmap
to
drive
more
value
from
the
sales
force
25

26.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
SPM Assessment: Triggers
Strategic
Triggered
by
Corporate
Vision
Situa<onal
Triggered
by
an
Event
SPM
Assessment,
Implementa<on
and
Automa<on
26

27.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
27
SPM Assessment: Strategic Triggers
Triggered by Corporate Vision
§ Higher
profit
margins
§ Balanced
sales
territories
§ Reduced
5me
to
new
hire
effec5veness
§ Reduced
turnover
§ Be^er
talent
hire
success
§ Reduced
admin
5me
on
compensa5on
processing
§ Be^er
sales
forecas5ng
§ Reduced
sales
cycles
§ Be^er
lead
conversion
§ Improved
ability
to
build
sales
teams
§ Minimised
non-­‐selling
5me
§ Be^er
regulatory
compliance

28.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
28
SPM Assessment: Situational Triggers
Triggered by an Event
§ Company
has
automated
commission
payments
but
needs
higher
ROI
from
its
investment
§ Increasing
sales
staff
turnover
§ Incen5ve
design
outdated
–
sales
staff
demo5vated,
dissa5sfied
§ Sales
performance
dips
with
new
products
§ Company
wants
to
iden5fy
other
improvements
within
broader
SPM
§ Cost
of
running
sales
opera5ons
is
s5ll
too
high

29.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
29
SPM Assessment Coverage
A holistic review of all pillars within SPM: Candidate Selection, Sales Enablement,
Sales Process and Methodology, Sales Compensation Administration & Design,
and Territory & Quota helps set the CMO and FMO
Sales Compensation
Administration &
Design
Sales Process /
Methodology
Sales Coaching &
Training
Candidate
Assessment,
Selection & On-
Boarding
Territory & Quota
Sales Strategy & Transformation
Sales Performance Management
Business Intelligence
Business Process Management (BPM)
Enabling Technologies
Organization / People

30.
OpenSymmetry
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Informa<on
-­‐
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Exercise
1
–
SPM
Case
Study
–
Challenges
and
Pain
Points
30

31.
OpenSymmetry
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Informa<on
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Exercise 1: SPM Challenges and Pain Points
§ Please
list
the
challenges
faced
by
Company
ABC
§ What
factors
do
you
think
contributed
to
these
challenges?
§ What
benefits
did
Company
ABC
realize
by
implemen5ng
an
incen5ve
compensa5on
management
program?
§ What
are
some
of
your
pains
points
for
your
company
within
SPM?
Please
rank
based
on
degree
of
business
impact?
31

32.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
Benefits of the new SPM managed service
§ Optimized incentive plan design
Simpler system, transparent and drives the right sales behaviors.
§ Increased accuracy
All calculations are automatic — no manual entry.
§ Real-time reporting for sales reps
24x7 access to personalized detailed sales performance reports and commission payout
schedules.
§ Real-time reporting for management
Managers can view reports for their team, and payment approvers can access the required
summarized information to support the payment approval process.
§ Improved communication and flexibility
The new commission model allows responsibilities to be easily assigned to employees and
enables commission calculations to be quickly and easily updated based on new thresholds,
caps and more.
32

33.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
SPM
Maturity
Model

34.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Course Objectives
ü About
SPM
Assessment
ü SPM
Industry
Thought
Leadership
ü Where
is
my
company
at
on
the
SPM
maturity
model?
ü Where
does
my
company
need
to
be
on
the
maturity
scale
(future
state
design)
based
on
industry
benchmarking/best
prac<ces?
ü What
elements
of
SPM
Maturity
modeling
do
I
need
to
consider?
§ How
do
I
get
to
my
future
mode
of
opera<ons?
34

35.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
35
SPM Transformation: CMO to FMO
Current
Mode
of
Opera<ons
1
3
4
Assess
Implement
Maintain
Current
State
Assessment
§ Organiza5on
§ Processes/Workflow
§ Repor5ng
&
Analysis
§ Technologies/Tools
Change
Management
Elements
are
iden-fied
all
through
the
SPM
Transforma-on
Process,
but
get
fully
executed
in
steps
3
and
4
Design/Build
Future
State
Design
§ Vision
§ Gaps
Assessment
§ Future
State
§ High
level
Framework
Build
§
Playbook/Roadmap
Ø Organiza5on
structure
Ø Governance
Ø Process/RACI
Ø Communica5ons
Ø Technology
Implement
Future
State
§ Execute
future
state
Ø Stakeholder
analysis
Ø Performance
metrics
Ø Workflow/
processes
Ø Technology,
Systems
and
tools
Ø Training/
employee
enablement
Ø Opera5onal
metrics
and
repor5ng
Sustain
§ Metrics
driven
SPM
performance
§ SPM
opera5onal
review
and
audit
§ Con5nuous
process
improvement
§ Con5nuous
Leadership,
coaching
and
mentoring
§ Governance
and
oversight
2
Design
&
Build
Future
Mode
of
Opera<ons

36.
OpenSymmetry
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Confiden<al
36
SPM Maturity Assessment
OS SPM Maturity Model
Organiza<on
§ Sales
Strategy
and
Opera5ng
/Coverage
Model
§ Defined
Roles
&
Responsibili5es
§ Sales
Enablement
&
Training
§ Employee
Sa5sfac5on
Processes
&
Workforce
§ Standardized
and
repeatable
end-­‐to-­‐end
Sales
processes:
Ø Performance
&
Compensa5on
Management
Ø Governance
(Dispute
Resolu5on,
etc..)
§ Ownership
Technologies
&
Tools
§ Technologies/tools
to
support
effec5ve
SPM:
Ø Standardized
&
Automated
Ø Integra5on
&
Scalability
Ø Data
Management
(Quality,
Availability
&
Accessibility)
Ø Func5onality
(Ease
of
Use)
Repor<ng
&
Analysis
§ Reports
ra5onaliza5on
§ Standardized
vs.
Ad
Hoc
§ KPIs/Metrics
(A^ainment,
Rev./HC,
U5liza5on,
etc.)

37.
OpenSymmetry
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37
SPM Maturity Assessment - Organization
Sales
Strategy
&
Opera<ng
Model
§ How
clearly
defined
is
the
strategy
and
opera5ng
model?
§ How
well
does
culture
and
values
align
with
the
strategy?
§ How
consistent
is
the
alignment
between
strategy
and
opera5ng
model
with
company's
goals?
§ Is
the
Sales
Admin:Payee
ra5o
op5mum?
Sales
Enablement
&
Training
§ How
well
is
the
organiza5on
inves5ng
to
drive
the
efficiency
of
sales
enablement
process?
§ How
proac5vely
is
the
organiza5on
iden5fying
the
barriers
and
coming
up
with
strategies
&
training
programs
to
overcome
those?
§ How
well
structured
are
the
training
programs
?
Roles
&
Responsibili<es
§ How
clearly
defined
are
the
roles
and
responsibili5es
of
the
employees?
§ How
well
are
the
roles
and
responsibili5es
of
employees
aligned
to
the
vision
and
mission
of
the
organiza5on?
Employee
Sa<sfac<on
§ How
are
employees
evaluated
on
job
performance?
§ How
well
are
employees
apprised
of
their
career
op5ons
at
the
company?
§ What
types
of
management
development/training
programs
are
offered?
§ How
do
you
rate
the
current
employee
programs?
§ How
good
is
our
recogni5on
and
career
development
program?

38.
OpenSymmetry
Proprietary
Informa<on
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Confiden<al
38
SPM Maturity Assessment – Processes &
Workflows
Standardized
and
Well-­‐
Defined
§ How
robust
are
planning,
budge5ng,
and
compensa5on
processes?
§ Are
plans
reviewed
periodically
to
be
most
agile
and
impactul?
Ownership
§ Are
there
clear
process
owners?
Issue
Escala<on
§ How
effec5ve
and
swi[
is
the
dispute
escala5on
process?
§ How
clear
is
the
ownership
of
the
process?

39.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
39
SPM Maturity Assessment – Reporting & Analysis
Reports Rationalization
§ Do we have an optimum number of reports?
§ Are there optimum number of standardized key and repeatable reports?
§ Do the right users have access to the right reports?
Measurable KPIs/Metrics
§ Do we have an optimum number of standardized KPIs and Metrics?
§ Has the measured KPIs helped in driving the efficiency of the organization?
§ Are we keeping track of all key metrics ?
§ How effectively do you define and ensure 'data quality' in relation to the
content utilized by your system?
Standardized, Repeatable
and Efficient
§ How comprehensive is your reporting ?
§ Are the reports standardized across business units?
§ How flexible is Business Intelligence system to allow for ad hoc reports?

40.
OpenSymmetry
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40
SPM Maturity Assessment – Technologies &
Tools
Automated
§ How
standardized
are
the
applica5ons
and
systems?
§ What
degree
are
the
applica5ons
and
systems
automated?
Integra<on
&
Scalability
§ How
flexible
and
scalable
current
are
the
applica5on
systems?
§ How
easily
can
you
integrate
current
system
to
a
new
system?
§ How
scalable
are
the
current
applica5ons?
Data
Management
§ How
robust
is
data
availability
and
quality?
§ How
accessible
is
data?
§ How
robust
is
data
storage?
§ How
good
is
the
data
security
?
Func<onality
§ How
extensive
is
system
func5onality?
§ Inves5ng
in
the
right
technology
?

41.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
41
Future State Design Implementation
§ Slow
Business
Adop<on:
Without
a
proper
change
management
plan,
key
stakeholders
may
not
fully
understand
or
u5lize
the
new
system
§ Value
Spillage:
Slow
adop5on
means
high
opportunity
costs
associated
with
weak
u5liza5on
of
all
the
5me-­‐saving
features
the
new
technology
or
processes
have
to
offer
§ Demoralized
Sales
Force:
Without
proper
training,
compensa5on
admins
may
issue
payouts
late
or
with
errors
impac5ng
sales
morale
§ Process
redundancies:
Duplica5on
of
efforts
in
the
absence
of
well-­‐defined
dependencies
and
hand-­‐offs
between
departments
§ Issue
Resolu<on:
Without
a
clearly
laid
out,
issue
escala5on
process
and
a
governing
body,
data,
technical
or
business
process
issues
may
take
very
long
to
get
resolved
An
effec-ve
future
state
design
implementa-on
requires
focus
on
change
management
and
governance

42.
OpenSymmetry
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Informa<on
-­‐
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42
Benefits of Future State Design
Source: Adapted - Harvard Business Review, Putting the Service-Profit Chain to Work
Future State Design Elements Impact Profit Chain from Employee to Customer
q Service/Products delivered to meet
customer needs
q Retention
q Repeat Business
q Referral
q Org. Design
q Roles Design
q Employee rewards and
recognition
q Employee training
q Defined processes
Product/
Service
Quality
Employee
Satisfaction
Employee
Retention
Employee
Productivity
Customer
Satisfaction
Customer
Value
Customer
Loyalty
Revenue
Growth
Profitability

43.
OpenSymmetry
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Informa<on
-­‐
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43
Future State: Organization
Elements
Industry
Best
Prac<ce
Org
Structure
§ As
per
the
OS
survey
(prelim),
~40%
of
the
organiza5ons
have
Sales
Compensa5on
Administra5on
as
a
centralized
process,
managed
at
the
head
quarters;
with
an
addi5onal
20%
that
takes
input
from
BUs
Sales
Compensa<on
Program
Ownership
§ According
to
2013
OS
survey,
36%
of
respondents
had
Sales
compensa5on
under
Sales
Opera5ons,
followed
by
17%
for
Finance
(Update)
Sales
Admin
to
Payee
Ra<o
§ According
to
industry
averages,
most
organiza5ons
(27%
of
the
survey
respondents)
hold
roughly
6-­‐10
FTE
to
run
sales
compensa5on
program
Cost/Payee
§ Monitor
reduc5on
of
cost/payee
by
crea5ng
efficiencies
through
transforma5onal
ac5vi5es
Roles
Documenta<on
§ Clearly
documented
roles
and
responsibili5es;
metrics
5ed
to
performance;
closed
loop
business
insights
to
drive
sales
footprint
and
coverage
Training
§ Tiered
training
for
field
on
how
to
read
earnings/payroll
statements
(job
aids,
cheat
sheets)
Think about these elements as you design your future state org structure

44.
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-­‐
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44
Business Unit (Regional) Corporate
Sales
Admin
Field
HR/
Legal
Customer
Service
Payroll Actuary Marketing IT
Sales
Manage-
ment
Compensation Plan
Design
C I I R C RA
Compensation Plan
Administration
RA I R C
Compensation Plan
Payroll
C I RA R
Reporting - Creation RA I I I A C
Reporting -
Maintenance &
Analysis
RA I I I I A I
Compensation Plan
Communication
R RI I I I RA I R
Compensation Plan
System Maintenance
R I I I I RA I
Compensation Plan
System Training
R R R A
Compensation Plan
Issue Resolution
RI RI C RA C C I
Future State: Organization
Clear roles and responsibilities as you design your future state org structure
Illustra<ve
R – Responsible; The person who has to do the step (the DOER); A – Accountable; The person who makes the FINAL DECISION; C – Consulted; The person who is BE
CONSULTED to execute the process/decisions, and I – Informed; The person who MUST BE INFORMED about the action/decision

45.
OpenSymmetry
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-­‐
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45
Future State: Reporting
The future state would require a more comprehensive review of metrics to ensure that
the right metrics are being used by the right folks to influence business decisions.
Samples
Metrics
for
Execu<ve
Dashboards
§ Cost
per
Payee
§ Total
Cost
:
Total
Revenue
§ Ra5o
-­‐
Admin:
Payee
§ Contribu5on
Margin
per
Payee
§ Incen5ve
Spend
to
Total
Quota
Achieved
§ Ra5o
-­‐
Individual
incen5ve
earned:
Individual
quota
achieved
§ %
Quota
achieved
by
region
/
market
segment
§ Profitability
metrics
(%
List
price
achieved
by
Sales
Rep)
§ SLA
around
5meliness
and
efficiencies
Standardiza<on
Ownership
Automated
source
data
Right
Calcula<on
or
Methodology
Right
number
of
reports
Right
metrics
Illustra<ve

46.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
46
Reports Freq. Owner System H/M/L # Description
Management Reports
Bonus Dashboard Mo Sales Ops MF – Bonus H 1
Bonus Control File from MF
updated weekly, but reported
monthly
Production Reports by
production type
Adhoc Sales Ops
MF Issue System
feeds QV
O
~35
3-5 per week ad hoc requests
Production Reports by
customer
W/Mo/Y Sales Ops
MF Issue System
feeds QV
O Pulled from QlikView
Field Reports
Production Reports by
customer
W/Mo/Y Sales Ops
MF Issue System
feeds QV
M Multiple FS: Offered as a drill down
Renewal Statements W Sales Ops MF - Commissions H Multiple Renewals with policy details
Earnings Statements W Sales Ops MF – Payroll H Multiple
Activities outside of commission
system: service fee, etc
Adjusted Bonus Report W Sales Ops MF – Bonus H Multiple
Includes cancellations; Lags by a
week
Administrative Reports
Deferred Commission List W Auto MF - Commissions M 1
Policies being withheld due to
licensing issues (expired, awaiting
approval, etc.)
Understand the impact of SPM automation on the various reports
W- Weekly, Mo- Monthly, Y-Yearly; # - Number of reports variations; MF – Mainframe; FS – Future State
Whether the Compensation system updates will have an impact on the current reports:
H - High – Important; Going to go into the commission system
M - Medium – Needed but not essential; Will be replaced due to the new commission system
L - Low – Can be eliminated or not clear whether needs to be replaced
O – Out of Scope
Illustra<ve
Future State: Reporting

47.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
SPM
Self
Assessment

48.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
48
SPM Self Assessment
§ Please
provide
the
overall
SPM
Maturity
Scores
for
your
company
at
the
bo^om
of
the
table
§ Please
score
your
organiza5on
using
the
SPM
Maturity
Model
§ Please
score
your
company’s
repor5ng
&
analysis
capabili5es
using
the
SPM
Maturity
Model
§ Please
score
your
company’s
process
and
workflows
using
the
SPM
Maturity
Model
§ Please
score
your
company’s
technologies
and
tools
using
the
SPM
Maturity
Model

49.
OpenSymmetry
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Informa<on
-­‐
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49
Scoring Guide
Organization
§ Poorly Defined
Roles
§ No Hiring/On-
boarding plan
§ Minimal Reward for
Performance
§ Unclear Touch Points
§ Informal Training
§ Incomplete Resource
Mgmt. Plan
§ Functional Alignment
§ Clear Roles and
Responsibilities
§ Focused Training
§ Good Employee Care
Program
§ Career Dev. Plan
§ Focused Career
Development
§ Effective
Organization
§ Communication
Plan in place
§ Highly Focused
Organization
§ Performance linked to
Comp
§ Optimal fixed vs.
Variable Staff
§ Clear roles
Reporting &
Analysis
§ Few Metrics Tracked
§ No KPI/KPO
Visibility
§ No RCA or CPI
§ Minimal Executive
Reporting
§ Inconsistent Metrics
§ Unclear tracking,
trending & analysis
§ Undefined
Methodology
§ Informal Process
§ Balanced metrics
§ Consistent
Methodology
§ Measure, Review and
Improve processes
§ KPI/KPOs defined
§ SPM highly refined
model
§ Standard,
Repeatable
Reporting &
Communication
§ Analytical structure
fairly strong
§ Comprehensive SPM
model
§ Consistent, Repeatable
processes
§ Continuous Process
Improvement
Processes &
Workflows
§ No repeatable,
measureable
processes
§ No integration
§ No formal Sales or
Perf Plans
§ No Governance
§ Stable Level of Service
§ Process Management
Inconsistent
§ Workflow diagrams not
consistently utilized nor
repeatable
§ Standards program in
place
§ Policies defined
§ Solid level of service
§ Standardized Workflow
diagrams
§ Basic process for review
and Improvement
§ Process and
Workflow
integration is
occurring with few
gaps
§ Workflows
becoming
standardized and
consistent.
§ On-going process
integration
§ Comprehensive
capabilities
management
§ Process-centric culture
§ Workflows are
documented
§ Consistent, repeatable
processes with CPI
Technologies
& Tools
§ Low degree of
Automation
§ Heavy Manual
Processes
§ Multiple Platforms
§ Few Tools or
Obsolete Tools
§ No Automation
§ Limited degree of
standardization
§ Inconsistencies across
the enterprise
§ Redundant applications
§ Very basic tools
§ Little Automation
§ Standard applications
and systems
§ Release management
§ Consistent technologies
§ Solid portfolio of tools
§ High degree of
automation
§ Environment &
infrastructure more
standardized
§ Improved
Applications
portfolio
§ Manual elements
most eliminated
§ Touch-points more
seamless.
§ Highly standardized
environment
§ Maximum reliability,
supportability and
efficiency
§ Long term Technology
program
§ Effective applications
portfolio
§ Release management
§ Highest degree of
automation
§ Integrated Portfolio
Stage 1
Ad Hoc
Stage 2
Emerging
Stage 3
Developing
Stage 4
Differentiated
Stage 5
Optimized
(Best In Class)

50.
OpenSymmetry
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-­‐
Confiden<al
Change
Management
50

51.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
Course Objectives
ü About
SPM
Assessment
ü SPM
Industry
Thought
Leadership
ü Where
is
my
company
at
on
the
SPM
maturity
model?
ü Where
does
my
company
need
to
be
on
the
maturity
scale
(future
state
design)
based
on
industry
benchmarking/best
prac<ces?
ü What
elements
of
SPM
Maturity
modeling
do
I
need
to
consider?
ü How
do
I
get
to
my
future
mode
of
opera<ons?
51

52.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
52
Change Management Enables Future Mode
of Operations
What
is
Change
Management?
Hurdles
to
Change
Management?
Benefits:
Why
is
Change
Management
Important
to
future
state
design?
An
Approach
to
Change
Management

53.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
53
What is Change Management?
Change
management
is
an
approach
to
transi<oning
individuals,
teams,
and
organiza<ons
to
a
desired
future
state
Ambiguity
Clarity
Transparency
Buy-­‐in
Resistance
X
ü

54.
OpenSymmetry
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54
What is Change Management?
Source:
HBR;
Industry
Research
–
Hurdles
to
improving
the
customer
–centricity
of
an
organiza5on
18%
21%
25%
25%
29%
35%
40%
45%
48%
57%
58%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Identyfing
target
customers
Lack
of
rigrous
design
methodology
Trying
to
change
customer
behaviour
Lack
of
internal
skills
Gaining
execu5ve
commitement
Designing
usuable
customer
interfaces
Implemen5ng
technology
Understanding
customer
needs
Measuring
customer
experience
Trying
to
change
employee
behaviour
Defining
our
customer
exoerience
strategy
Gevng
ailgnment
across
organiza5on
Change
Management
a
universal
business
issue

55.
OpenSymmetry
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-­‐
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55
What is Change Management?
Typically 70% of the Change Efforts Fail!
§ Announcing
the
change
is
not
the
same
as
implemen5ng
it
§ Those
impacted
the
most
are
not
involved
in
planning
for
change
§ The
business
case
for
change
has
not
been
communicated;
No
compelling
reason
for
change!
§ The
change
champions
are
not
the
right
folks
–
no
early
adopters
§ Change
ini5a5ves
are
not
priori5zed
or
piloted
§ Achievements
are
not
measured
or
recognized
§ No
clear
lines
of
accountability
Source:
Secondary
Research

56.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
56
Hurdles to Change Management
Lack
of
change
management
resources
and
planning
Poor
support
and
alignment
with
middle
management
Ineffec<ve
change
sponsorship
from
senior
leaders
Resistance
to
the
change
from
employees

57.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
57
Benefits to Change Management
§ Change
management
provides
a
structured
approach
to
enabling
and
encouraging
the
individual
transi5ons
required
by
a
project
or
ini5a5ve.
§ With
more
effec5ve
change
management,
the
probability
of
mee5ng
objec5ves
on
-me
and
on
budget
increases
significantly.
§ Effec5ve
change
management
results
in
faster
speed
of
adop-on,
higher
ul-mate
u-liza-on
and
greater
proficiency,
which
all
drive
higher
ROI.
§ Effec5ve
change
management
helps
eliminate
unnecessary
costs
that
can
crush
a
project
and
destroy
ROI.
§ Change
management
is
an
effec5ve
risk
mi-ga-on
tool
Source:
Industry
Research

58.
OpenSymmetry
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-­‐
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58
ROI of Change Management
COST VS BENEFITSTRUCTURE (BASIC)
Cost
Benefit
Secondary
Cost
Primary
Component
Cost
Reinforcement
& Recognition
Costs
Event Costs
Change
Managemen
t Resource
Costs
Training
Costs
Communicat
ions Costs
Enables Transition
Required For A
Project Or An
Individual
Performance
Improvement
Cost
Reduction
Net Positive ROI of
Change Management
Minimizing
Risk
Consultant
Costs Change
Management
Materials

59.
OpenSymmetry
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Informa<on
-­‐
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59
Approach to Change Management?
Source:
Accelera5ng
change
based
on
the
work
of
John
P.
Ko^er
Step
2
-­‐
Create
the
guiding
coali<on
Step
1
-­‐
Establish
a
sense
of
urgency
Pre-­‐Step
-­‐
Iden<fy
a
Change
Leader
or
Change
Champion
Step
5
-­‐
Empower
broad-­‐based
ac<on
Step
4
-­‐
Communicate
the
vision
for
buy-­‐in
Step
6
-­‐
Generate
short-­‐term
wins
Step
8
-­‐
Incorporate
change
into
culture
Step
7
-­‐
Never
let
up
Post
Change
-­‐
Measure
Step
3
-­‐
Develop
a
change
vision
Create
Climate
for
change
Engage
and
enable
the
whole
organiza<on
Implement
and
sustain
change

60.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Exercise
2
–
SPM
Case
Study
–
Change
Management

61. Exercise 2 – SPM Case Study – Change
Management
61
§ What
were
some
of
the
change
management
challenges
for
Company
X?
§ What
were
the
key
stakeholders
for
Company
X?
§ What
change
management
hurdles
would
you
encounter?
How
would
you
manage
these
hurdles
today?

62.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Self
Assessments
–
Read
Outs

63. Exercise 2 – SPM Self Assessment Read Out
Area CMO FMO
**Aggregate
Industry
Score
Comments
Organization 4.0
Processes &
Workflows
3.9
Reporting &
Analysis
3.5
Technologies &
Tools
3.9
X
CMO Score
X
FMO Score
** OS Research and Analysis into companies who have adopted SPM solutions
CMO - Current Mode of Operations; FMO - Future Mode of Operations
63

64.
OpenSymmetry
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Informa<on
-­‐
Confiden<al
Wrap
up
64

65.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
What did we learn today?
ü About
SPM
Assessment
ü SPM
Industry
Thought
Leadership
ü Where
is
my
company
at
on
the
SPM
maturity
model?
ü Where
does
my
company
need
to
be
on
the
maturity
scale
(future
state
design)
based
on
industry
benchmarking/best
prac<ces?
ü What
elements
of
SPM
Maturity
modeling
do
I
need
to
consider?
ü How
do
I
get
to
my
future
mode
of
opera<ons?
65

66.
OpenSymmetry
Proprietary
Informa<on
-­‐
Confiden<al
Q&A
66

67. Performance. Innovation. Whatever it takes.