1. Sales Cloud Incentive Compensation
Edward Dewolf
Principle Sales Consultant
June 3rd, 2016

2. CPQ SPM SFA Sales Automation process customer sales rep
Empowering the Sales Process
process
customer
sales rep
Oracle Confidential – Internal/Restricted/Highly Restricted

3. Sales Performance Management
Empowering the Sales Manager
Sales Performance Management
Territory Management
Quota Management
Forecasting
Incentive Compensation
Oracle Confidential – Internal/Restricted/Highly Restricted

4. Sales Performance Management
Empowering the Sales Manager
Sales Performance Management
Territory Management
Quota Management
Forecasting
Incentive Compensation
Oracle Confidential – Internal/Restricted/Highly Restricted

5. 50% Or more companies use MS Excel
Oracle Confidential – Internal/Restricted/Highly Restricted

6. INCENTIVE SCHNEIDER EXPENSES 3% of $B26 = $780M (Assumption)
Incentive and Revenue (Accenture 2012)
Companies generally spend between 3 percent and 10 percent of revenues on incentive compensation. However, research shows that businesses can’t always quantify the cause-and-effect relationship between sales incentives and sales performance.
An insurance company brings in about US$20 billion annually. Of that $20 billion, approximately $1.1 billion—5.5 percent—goes to sales incentives such as bonuses and commissions.
A global bank earns about US$29 billion per year. Almost 7 percent of that sum—about $2 billion—is used to pay commissions to the organization’s sales producers and servicing agents.
A high-tech company devotes approximately US$250M annually to sales incentives, which represents about 5 percent of their $5B revenue.
INCENTIVE SCHNEIDER EXPENSES
3% of $B26 = $780M (Assumption)

7. Schneider Incentive Cost Optimization
“On average, using inaccurate tools, organizations overcompensate their sales professionals between 3 and 10 % annually,”. – Joe Galvin, Gartner Marketscope
INCENTIVE SCHNEIDER EXPENSES
3% of $B26 = $780M (Assumption)
ANNUAL COST OPTIMIZATION
2% of $780M = $15.6M (Assumption)

8. 10% Companies pay about 10% of their revenue in compensation
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9. 3%
According to Gartner, 3% to 8% is what companies on average pay too much in compensation when using Excel based solutions
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10. The Business Problem
Sales Compensation spend as a percentage of annual revenues is up to 11.5% from 10.7%
– CSO Insights, Sales Compensation Key Trends Analysis
On average, organizations overcompensate their sales professionals between 3 and 10 percent annually. – Joe Galvin, Gartner Marketscope
Company
Annual Sales
Sales Compensation (11%)
Overpay ( 3%)
UK Prospect £ £ £
Oracle Confidential – Internal/Restricted/Highly Restricted

11. 2017 Results
Now, let’s fast forward to the present and there are a number of changes. And so what I’ve done to help us show these differences is…
I have to admit I was surprised to see IBM move up. You may not be aware but they were an acquisition based on Microsoft technology. I expect the difference was not product but rather additional market presence due to a larger sales force. Also curious why Zulu participates.
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12. Fusion Incentive Compensation
Who should be interested
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13. Out-of-the-box Integrations
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14. Sales Performance Management
Focus on Achieving Results
Define Scope (Territory Management)
Setting Goals (Quota Managament)
Calc Rewards (Incentive Comp)
Oracle Confidential – Internal/Restricted/Highly Restricted

15. Sales Performance Management
Focus on Achieving Results
No Coding, Flexible
Scalable, Transparent
Analytics, Mobile
Define Scope (Territory Management)
Setting Goals (Quota Managament)
Calc Rewards (Incentive Comp)
Oracle Confidential – Internal/Restricted/Highly Restricted

16. Why Incentive Compensation
On average, organizations overcompensate their sales professionals between 3 and 10 percent annually. – Joe Galvin, Gartner Marketscope
Oracle Confidential – Internal/Restricted/Highly Restricted

17. Incentive Compensation
1999
2012
2016
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18. Sales Cloud Incentive Compensation References
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19. Sales Cloud Incentive Compensation in Communications

20. Homepage
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21. Compensation Plan Overview
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22. Create Compensaion Plan Component
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23. External Payroll Provider
CRM
HCM
ERP
External Payroll Provider
Compensate Employees 4
Employees are registered as participants
ERP booking / invoicing data loaded as transactions
Payment information provided to external payroll provider
Commision status available
Incentive Comp 3 1 2
Confidential – Oracle Internal/Restricted/Highly Restricted

24. Compensate Partners External Partners are registered as participants
CRM
HCM
ERP / AP
Other
Compensate Partners
External Partners are registered as participants
ERP booking / invoicing data loaded as transactions
Payment information provided Account Payables
Incentive Comp 1 2 3
Confidential – Oracle Internal/Restricted/Highly Restricted

25. Book Provisions Early Users are registered as participants
CRM
HCM
ERP / GL
Other
Book Provisions Early
Users are registered as participants
ERP booking / invoicing data loaded as transactions
Future Payment information booked as provisions in General Ledger
Incentive Comp 1 2 3
Confidential – Oracle Internal/Restricted/Highly Restricted

26. Additional Measures Employees are registered as participants
CRM
HCM
ERP
Other
Additional Measures 3 2
Employees are registered as participants
ERP / Sales data loaded as transactions
Calculated KPI’s are provided to Sales organization
Incentive Comp 1 2
Confidential – Oracle Internal/Restricted/Highly Restricted

27. Integrations Integrating Incentive Compensation web service file based
database link (on premise only)
Transaction Lifecycle
Imported Transactions
Payment Transactions
Source Systems
Any HR / SAP
Any ERP
Any CRM / Siebel
Call Centre Application
Partner Management System
Any Payroll system
Any AP (paying dealers)
Any GL (booking provisions)
Any Datawarehouse
Any system that needs IC results
Target Systems
Oracle Confidential – Internal/Restricted/Highly Restricted

28. Incentive Compensation
Transaction Lifecycle
Transaction Lifecycle
Credited
Transactions
Payment Transactions
Earnings Transactions
Base Transactions
Imported
Participants
Territories
Quotas
Comp Plan
Oracle Confidential – Internal/Restricted/Highly Restricted

29. Participants Participants Collect all involved people as participants
Partners
Managers
Salesreps
Participants
Collect all involved people as participants
Global Business Unit Support
Import from ERP
Import from CRM
Single-Sign-On
Oracle Confidential – Internal/Restricted/Highly Restricted

30. Participants Participants Versioning through ‘Effective Dating’
Custom fields can be added
Custom fields are available for reporting
custom
Oracle Confidential – Internal/Restricted/Highly Restricted

31. Other Types of Related Information
Territories and Responsibilities
Manage within Incentive Compensation
Import into Incentive Compensation
Oracle Territory Management
Goals and Quota’s
Manage within Incentive Compensation
Import into Incentive Compensation
Oracle Quota Management
Import Oracle HCM Cloud goals
Transaction Lifecycle
Credited
Transactions
Payment Transactions
Earnings Transactions
Base Transactions
Imported
Participants
Territories
Quotas
Comp Plan
Oracle Confidential – Internal/Restricted/Highly Restricted

32. Incentive Compensation
Transaction Lifecycle
Transaction Lifecycle
Credited
Transactions
Payment Transactions
Earnings Transactions
Base Transactions
Imported
Participants
Territories
Quotas
Comp Plan
Validation
Who
How Much
When
Classify
Oracle Confidential – Internal/Restricted/Highly Restricted

33. Accepting Transactions
Validation and Error Handling
Transaction Lifecycle
Credited
Transactions
Payment Transactions
Earnings Transactions
Base Transactions
Imported
Staging Environment
Validation and Error Handling
Classify Base Transactions
Assign Credit Categories
Oracle Confidential – Internal/Restricted/Highly Restricted

34. Accepting Transactions
Validation and Error Handling
Transaction Lifecycle
Credited
Transactions
Payment Transactions
Earnings Transactions
Base Transactions
Imported
Staging Environment
Validation and Error Handling
Classify Base Transactions
Assign Credit Categories
Oracle Confidential – Internal/Restricted/Highly Restricted

35. Transaction Classification
Classification Rules
Assign to Base Transactions through Classification Rules
Linked to Calculations through Measures
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36. Classification Rules
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37. Crediting Engine Linked to Participants
Who is elegible on the base transactions
Transaction Lifecycle
Credited
Transactions
Payment Transactions
Earnings Transactions
Base Transactions
Imported
Linked to Participants
Compensation Plan per Role or User Group
Territory Management through Crediting Rules (Direct, Team, Rollup)
Oracle Confidential – Internal/Restricted/Highly Restricted

38. Participant Assignment
How are plans linked to Participant / Position / Title
Direct Assignment
Simple Option
Assign by Role
Direct Assignments
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39. Participant Assignment
How are plans linked to Participant / Position / Title
Direct Assignment
By Qualifying Criteria
Assign Credit Receivers
Indirect
Rollup
Team
Oracle Confidential – Internal/Restricted/Highly Restricted

40. Calculation Engine
How much compensation on credited transactions
Transaction Lifecycle
Credited
Transactions
Payment Transactions
Earnings Transactions
Base Transactions
Imported
Compensation Plan Calculations against Credited Transactions
Oracle Confidential – Internal/Restricted/Highly Restricted

41. Building Blocks of a Compensation Plan
Compensation Plan FY2016
... quarterly bonus and product sales commission ... per transaction commission ... % of transaction amount % for first 90 transactions, 30% for next 10 trxs, 35% for the next 20 trxs and 40% for all transactions above
How to build a Comp Plan
How to define Calculations
Modular approach to Rules

42. Building Blocks of a Compensation Plan
Compensation Plan FY2016
Plan Component
... product sales commission ...
Measure
What?
... per transaction commission ...
How?
Formula
... % of transaction amount ...
How Much?
... 25% for first 90 transactions, 30% for next 10 trxs, 35% for the next 20 trxs and 40% ...
Rate Table

43. Building Blocks of a Compensation Plan
Jamie Oliver Recipe book
Plan Component
Spagetti Recipe
What?
Tomato Sauce
Measure
How?
Cook chopped tomatos, diced onions and garlic in a hot pan ...
Formula
How Much?
10 Tomatos, 1 onion, 2 cloves of garlic
Rate Table

44. Building Blocks of a Compensation Plan
Plan Component
Measure
Formula
Rate Table
Compensation Plan FY2016
Placeholder to group plan components
Approvals
Export & Import
No IT involvement needed

45. Compensation Plan Overview
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46. Compensation Plan Approvals
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47. Building Blocks of a Compensation Plan
Plan Component
Measure
Formula
Rate Table
... product sales commission ...
Reusability / Effective Dates
Multiple Components per Plan
Validation
Where Used
No IT involvement needed

48. Plan Component
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49. Building Blocks of a Compensation Plan
Plan Component
Measure
Formula
Rate Table
... per transaction commission ...
What?
Multiple Measures per Component
Credit Categories
no IT involvement

50. Measure
Confidential – Oracle Internal/Restricted/Highly Restricted

51. Building Blocks of a Compensation Plan
Plan Component
Measure
Formula
Rate Table
... % of transaction amount ...
How ?
Trx.CreditAmount * RateTableRate %
no IT involvement

52. Formula
Oracle Confidential – Internal/Restricted/Highly Restricted

53. Building Blocks of a Compensation Plan
Plan Component
Measure
Formula
Rate Table
... 25% for first 90 transactions, 30% for next 10 trxs, 35% for the next 20 trxs and 40% ...
How Much ?
One Rate Table
Multiple Dimensions
no IT involvement

54. Rate Tables
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55. 2 Dimensional Rate Table
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56. Incentive Compensation Rate Table Types
Rate Tier Growth
14%
10% 7% 5% 3% 0%
$0 $50k $100k $150k $200k
Sales Attainment
No Split
Rate Tier Growth
14%
10% 7% 5% 3% 0%
$0 $50k $100k $150k $200k
Sales Attainment
Non-Proportional Split

57. Incentive Compensation Rate Table Types
Rate Tier Growth
14%
10% 7% 5% 3% 0%
Sales Attainment
Proportional Split
$0 $50k $100k $150k $200k
Rate Tier Growth
14%
10% 7% 5% 3% 0%
Sales Attainment
Nonlinear/ Exponential Split
e.g. f (x) = x2 + x - 1
$0 $50k $100k $150k $200k

58. Calculations How are simulations handled? Participants
Estimated Compensation
Participants
What-if Analyse
Analyst
Compensation plan testing
Administrator
Oracle Confidential – Internal/Restricted/Highly Restricted

59. Simulations
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60. Audit & Logging Audit through reporting
Transactions
Formulas
Tracked
Rollback
Recalculations
Trace every step through the lifecycle of every transaction
For analyst
For participant
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61. Reporting Screenshot
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62. Mobile Commissions Always stay up to date Transparent
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63. Dispute Management
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64. Sales Cloud Incentive Compensation
The Boring Stuff
Calculates Compensation plans very well
Integrates with lots of other solutions
ERP
CRM
HCM
Oracle Confidential – Internal/Restricted/Highly Restricted

65. Sales Cloud Incentive Compensation
The Exciting Stuff
The solution to the #1 Sales Management Problem
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66. Sales Cloud Incentive Compensation
The Exciting Stuff
THE solution to increase User Adoption
better MANAGE performance
better MOTIVATE behaviors
better MENTOR best practices
Drive Sales Behaviour
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67. Confidential – Oracle Internal/Restricted/Highly Restricted

68. Gamification How creative can you be
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69. Confidential – Oracle Internal/Restricted/Highly Restricted

70. Confidential – Oracle Internal/Restricted/Highly Restricted

71. Starting a New Cycle Define Scope (Territory Management)
Time Consuming Process!
Overlays and Gaps?
Does everyone has the same odds of achieving goals?
Define Scope (Territory Management)
Setting Goals (Quota Managament)
Define Rewards (Incentive Comp)
Oracle Confidential – Internal/Restricted/Highly Restricted

72. Territory Management 1
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73. Territory Management 2
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74. Quota Management 1
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75. Summary Customers switch to Oracle for No Coding
Customers switch to Oracle for Flexibility
Customers switch to Oracle for Scalability
Customers switch to Oracle for Transparency
Customers switch to Oracle for Reporting