Oracle Incentive/Sales Compensation – Lessons Learned Presented by: Lisa Barthel-Daluge Creative Consulting Solutions, Inc.

Copyright ©2007 by Creative Consulting Solutions, Inc. Presentation Agenda Lessons Learned – CRM Resource Mgr Lessons Learned – Compensation Plan Design/Approach Lessons Learned - OIC Processing Lessons Learned – Project Team/Timeline/Structure Questions and Answers

Lessons Learned – CRM Resource Manager

Copyright ©2007 by Creative Consulting Solutions, Inc. Types of Individuals Compensated CRM Reps Account Executives External Sales Agents Product Support District Representatives Corporate Management Sales Management Service Reps Customer Service or Sales Admin Sales Executives Company Wide Employees Internal/Employee Sales Reps Oracle Incentive Compensation

Copyright ©2007 by Creative Consulting Solutions, Inc. CRM Resource Manager Internal/External Employees, Supplier Contacts, Party, Partner, Other Import from Source Number of Resources Usage of Resource Drives Setup Modify Other Resources Volume – Automated, Data Loader or Manual

Copyright ©2007 by Creative Consulting Solutions, Inc. Roles Created for all Oracle modules Role type indicates where it can be used Used to link to compensation plan Multiple roles Usually one-to-one or many-to-one relationship Date driven to support movement between roles/plans

Copyright ©2007 by Creative Consulting Solutions, Inc. Groups/Teams Hierarchical Roll-Up Indirect/Overlay Credit Receivers Roll-Across Managerial Rollup Check Box Manual or Data Loader Date Driven for Territory Re- alignment

Lessons Learned – Compensation Plan Design/Approach

Copyright ©2007 by Creative Consulting Solutions, Inc. Compensation Plan Design Start with Sales Plan or Incentive Plan Review each plan to identify each plan component (I.e. 1 to 2 month process) Identify each primary commission driver Identify re-usability of plan components Identify data requirements for incoming transactions

Copyright ©2007 by Creative Consulting Solutions, Inc. Variations of Incentive Plans Account Managers –Individual Plan Element –Lease GPM Bonus Plan Element –New Account Bonus Element DM –Individual Plan Element –Overall GPM Bonus –Lease Origination Bonus –Quarterly Consulting Services Bonus Product IC –Individual Incentive Plan Element (Upfront) –Individual 2M Bonus –System Services Bonus –Key Client Bonus

Copyright ©2007 by Creative Consulting Solutions, Inc. Compensation Plan Structure Compensation Plan Plan Element Revenue ClassFormula and Expressions Role Revenue Class Rate Table And Dimension Formula and Expressions Rate Table and Dimension Resource Ruleset Group/Team

Copyright ©2007 by Creative Consulting Solutions, Inc. Revenue Classes and Rules Product Category Type of Service or Product Sold New Product High End Product Total Product Sales Channel Type of Salesrep – Role Data Attributes Integrated Modules Cross-Reference Tables or Lookups Data Collection

Copyright ©2007 by Creative Consulting Solutions, Inc. Rate Tables and Dimensions Dimensions – Percent, Amount, String Rate Tables – Percent or Amount Multi-Dimensional Can Setup On Formula or Plan Element Re-User by Customize Rates by Resource Date Driven

Copyright ©2007 by Creative Consulting Solutions, Inc. Formulas and Expressions Mathematical Component Input – Rate Dimension Output – Commission or Bonus Amount Can Build Simple to Very Complex Inter-Dependent Functions Other Plan Element Results

Copyright ©2007 by Creative Consulting Solutions, Inc. Plan Elements Created by Plan Component Re-Use Across Plans Link Formula, Revenue Class, Rate Tables Identify the Interval Commission or Bonus

Copyright ©2007 by Creative Consulting Solutions, Inc. Compensation Plan Created by Role Consistent Commission Structure Role/Resources Assigned to Plan Design Time Year to Year Work with Writers of Plans

Copyright ©2007 by Creative Consulting Solutions, Inc. Setup by Role/Resource Roles –Compensation Plans –Paygroup –Payment Plan Resources –Quotas –Rates

Copyright ©2007 by Creative Consulting Solutions, Inc. Compensation Plan Structure Compensation Plan Plan Element Revenue ClassFormula and Expressions Role Revenue Class Rate Table And Dimension Formula and Expressions Rate Table and Dimension Resource Ruleset Group/Team

Lessons Learned - OIC Processing

Copyright ©2007 by Creative Consulting Solutions, Inc. OIC Processing

Copyright ©2007 by Creative Consulting Solutions, Inc. Data Collection and Load Open Data Collection Process Builds Code Within Application Standard Sources – Configure Additional Attributes Custom Sources Using Standard Configuration Frequency of Collection

Copyright ©2007 by Creative Consulting Solutions, Inc. Calculation Frequency Full or Incremental By Resource Stages of Calculation Validation

Copyright ©2007 by Creative Consulting Solutions, Inc. Payment Paygroups –Geography –Frequency Payment Plans –Min/Max –Draw –Recoverable/Non- Recoverable Payruns –Resource Type –Oracle Payroll –Oracle Accounts Payable –Other Systems Journal Entries

Copyright ©2007 by Creative Consulting Solutions, Inc. Reports Standard Reports Custom Reports Data Warehouse On-Line/Paper Salesrep Management Processing/Validation Exception Analytical

Lessons Learned – Project Team/Timeline/Structure

Copyright ©2007 by Creative Consulting Solutions, Inc. Key Suggestions for Design Spend Time on Design Streamline where possible Group into higher level commission buckets Minimize give/take back Minimize exceptions Settle with reps as they move positions Be open to adjustments of commission philosophy Commission exactly as you do today = some customizations Think outside the box Consistency in structure/process Utilize rates to drive different performance rather than different elements

Copyright ©2007 by Creative Consulting Solutions, Inc. Lessons Learned - Timeframe Simplistic Sales Plan Small # of Reps/Plans/Roles Sales, Administrators and IT Design Together High Internal Knowledge of Plans & System Stand Alone or Post ERP Implementation or Upgrade Short Testing and Validation Cycle Required Commission Attributes Readily Available Complex Sales Plan Large # of Reps/Plans/Roles Sales, Administrators and IT do not Design Together Limited Internal Knowledge of Plans & System Part of ERP Implementation or Upgrade Heavy Testing and Validation Cycle Required Commission Attributes Drive Re-design of Master or Transaction Sources Duration 3 Months 12 Months

Copyright ©2007 by Creative Consulting Solutions, Inc. Lessons Learned Project Staffing # 1 Key to Success Involve Sales, Administrators and Accounting Supplement with External SME’s Functional and Technical Resources More Experienced, the Better

Copyright ©2007 by Creative Consulting Solutions, Inc. Lessons Learned 11i OIC 11i Vast Changes/Improvements Plan on: New Knowledge Requirements New Functionality Requirements Elimination of Some Customizations Re-evaluation of Capabilities if not Previously Implemented

Questions and Answers Contact Information: Lisa Barthel-Daluge