Key metrics to consider while analyzing impact of mid-year plan parameter changes?

  • Immersion & Situation Assessment: Understanding of existing plan structure and qualitative assessment of key stakeholders
  • Historical Performance Analysis: Quantitative analysis of performance data to better understand the effectiveness of current plans and performance patterns
  • Develop Incentive Plan Options: Identify key business objectives and design guiding principles driving various payment parameters such as caps, floors, qualifiers, frequency etc.
  • Qualitative Assessment of Plan Options: Assessment of plans in the light of guiding principles ensuring fairness and differentiation in payments based on different performance levels
  • Financial Modelling: Prediction of total compensation as well as impact on individual salesperson payment based on current performance in a new plan scenario
  • Final IC Plan Communication: Selection and communication of the incentive plan design using multiple channels
  • Performance metric change
  • Payout curve changes
  • Slope Change
  • Threshold change
  • Cap addition/deletion/update
  • Commission rate modelling
  • Updated sales/goals data due to alignment or market changes
  • Change in plan component weights
  • For the entire salesforce-geographical combination
  • For specific geographies
  • Addition of qualifiers
  • Performance multipliers
  • Change in rules for HR exceptions
  • Plan performance parameters
  • Total Payout
  • Min Payout
  • 10th Percentile
  • Median (100%)
  • Average (100%-105%)
  • 90th Percentile
  • Maximum Payout
  • no. of territories above cap limit
  • Engagement Rate (100%)
  • Meaningful Engagement Rate (70%-80%)
  • Payout scatter for territories across 2 models
  • Payout statistics and distribution
  • Top 5 performers in base vs. universe
  • Bottom 5 performers in base vs. universe
  • Top 5 payment increases
  • Top 5 payment decreases

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Aurochs

Aurochs

Cloud platforms, information management and advanced analytics for the life sciences industry