Slideshow Transcript

1. Slide 1: All Dressed Up But Not Ready to Go Yet? Tips on Building A Business Case For Your EIM Project Jim Lazarz Former AVP of Compensation, CUNA Mutual Group Lazarz Consulting
2. Slide 2: Agenda / Topics About Enterprise Incentive Management Software (EIM) • Why EIM? • Selling EIM in Your Organization • Steps to Prepare Your Business Case • Sample Business Case Worksheets • © 2007 Callidus Software Inc. – Proprietary & Confidential
3. Slide 3: EIM…What is it? • At its core… EIM technology pays sales forces /distribution channels accurately and timely • Used strategically… EIM helps companies manage incentive plans to achieve distribution system success • Leveraged fully… EIM supplies a wealth of analytical data to help business achieve strategic outcomes © 2007 Callidus Software Inc. – Proprietary & Confidential
4. Slide 4: Sales Performance Software Suite Territory Management Quota Analytics EIM Management Dispute Resolution © 2007 Callidus Software Inc. – Proprietary & Confidential
5. Slide 5: Levels of EIM Sophistication • Not all companies require same level of EIM sophistication • Levels Include: • Spreadsheets and/or Microsoft Access • Payroll system modules • Low Complexity, non-scaleable EIM • Best of Breed Solutions • Today’s discussion focuses primarily on Best of Breed © 2007 Callidus Software Inc. – Proprietary & Confidential
6. Slide 6: Why EIM? • EIM has two important doorways into a company’s financial statements: • Achieving Operational Efficiency • Ensuring Sales Performance © 2007 Callidus Software Inc. – Proprietary & Confidential
7. Slide 7: Operational Efficiencies • Include: • Increased accuracy and timeliness of incentive payments Reduced costs of administration • Better, more cost-effective reporting • Lower overall technology costs • Compliance (Sarbanes-Oxley) • © 2007 Callidus Software Inc. – Proprietary & Confidential
8. Slide 8: Sales Performance • Include: • Enabling Quick Response to Incentive Plan Changes • Close Monitoring of Sales Force Performance • Analysis of Market, Channel, Product and Producer Sales Data… • Enabling Strategic Outcomes in Sales Force and Channel Management © 2007 Callidus Software Inc. – Proprietary & Confidential
9. Slide 9: … Why EIM? Another View of Need for EIM: • Who Needs • Why Do They Need IT • What Problems Does it Solve © 2007 Callidus Software Inc. – Proprietary & Confidential
10. Slide 10: So, Why EIM? • Who feels pain around Sales Compensation? • Sales Distribution Inaccurate pay • Missed payrolls • Poor or expensive reporting • Slow response to plan design changes • • Marketing/Sales Management • Poor producer/product data • Need for robust analytics • Slow reaction to new channels or markets © 2007 Callidus Software Inc. – Proprietary & Confidential
11. Slide 11: Why EIM? (continued) • Financial department Overpayments • Accounting errors • Internal audit problems • Sarbanes-Oxley • • Compensation Administration High unit costs • Heavy on labor • Poor reporting capabilities • Reacting to claims of “wrong pay” • © 2007 Callidus Software Inc. – Proprietary & Confidential
12. Slide 12: Why EIM ? (continued) • IT department Old (non-standard) technology • Inefficient technology • Multiple systems • High cost of support • • Human Resources Compensation design limitations • Employee morale • Sales force turnover • High recruitment and training costs • © 2007 Callidus Software Inc. – Proprietary & Confidential
13. Slide 13: Why EIM? Points to Remember… • EIM will address both operational efficiency and sales performance challenges • Evaluate your organization to find and value your pain points © 2007 Callidus Software Inc. – Proprietary & Confidential
14. Slide 14: Selling EIM In Your Organization • Tell both the operational efficiency and sales performance stories • Sell a solution to the pain points identified • Develop a cross functional team © 2007 Callidus Software Inc. – Proprietary & Confidential
15. Slide 15: Selling EIM In Your Organization • Prepare a robust Cost Benefit Analysis (CBA) • Hard Dollar Savings (Operational Efficiency) • Future Cost Avoidance (Operational Efficiency) • Soft Dollar Savings (Operational Efficiency and Sales Performance) • Market Place Advantages (Sales Performance) • Employee Relations Advantages © 2007 Callidus Software Inc. – Proprietary & Confidential
16. Slide 16: Selling EIM Points to Remember... • Use a Cross Functional Team • Address Both Operational Efficiency and Sale Performance Issues in CBA © 2007 Callidus Software Inc. – Proprietary & Confidential
17. Slide 17: Building an EIM Business Case • Step 1 • Identify who feels “Pain” around Sales Compensation in your organization • Step 2 • Using Pain Points identified, analyze both Operational Efficiency and Sales Performance outcomes you’d like to achieve. • Step 3 • Create a Pre-Cost Benefit Analysis (CBA) Business Case © 2007 Callidus Software Inc. – Proprietary & Confidential