Unleash the Power of Performance with a Compensation Center of Excellence

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Unleash the Power of Performance with a
Compensation Center of Excellence
Track Sales/Sales Operations Executives

• Christopher Cabrera, Xactly Corporation
• Matt Grover, Cablevision
• Scott Rames, Dimension Data

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Christopher Cabrera Founder, CEO
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About Xactly

• Leader in on-demand sales performance
  management
• Target companies with 5,000 or fewer payees
• Focused on automating key business processes for
  finance and sales
• World-class management team with 35 years of
  combined domain experience
• Manage more than 1 billion in variable
  compensation

• INDUSTRY Software
• EMPLOYEES 100
• GEOGRAPHY Global
• CUSTOMERS 140

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Experiencing the Benefits
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On-Demand Sales Performance Management
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On-Demand Sales Performance Management
Post-Sales Business Data
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On-Demand Sales Performance Management
Commitment to Product Innovation
2009
Current
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Xactly Incent

• Flexible, rules-based compensation engine
• Intuitive compensation plan design,
  implementation and maintenance
• Real-time visibility into incentive compensation
  plans commissions, bonuses, draws, SPIFs
• Real-time what if calculations
• Web-based reporting for the entire organization
• Plan Document and Certification Letter
  configuration, routing and tracking
• Deep integration leading CRM applications

• Benefits
• Increase profits
• Increase sales effectiveness
• Gain competitive advantage
• Reduce TCO
• Comply with Sarbanes-Oxley

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Seamless Integration with CRM

• Single sign-on
• What if Incentive
• Estimation
• Commissions Mash-up

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Non-Cash Rewards ApplicationBuilt Natively on
the Force.com Platform
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Non-Cash Rewards Application
APEX CODE MASH-UPS WORKFLOW WEB SERVICES API
Opportunity
Sales Teams
Case

Support
Force.com lets us focus on innovation and rapid
time to market. Developing on Force.com gives us
broad distribution to extend the value of CRM.

PayPal
Call Centers
Lead
Marketing
?
_at_
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Business Challenge
The Application
Force.com Difference

• Easy to use non-cash incentives application
• Creation and management of incentive programs,
  contests and special performance incentive funds
  (SPIFs) for multiple audiences
• Real-time rewards attainment tracking to the
  immediate online redemption of points
• Select from millions of merchandise items from
  leading brands, travel and leisure, adventure
  packages, tickets to entertainment and sporting
  events

• Easy data model creation
• Hosting services
• Security
• Rich development platform
• Powerful programming language
• Rapid time to market
• Broad audience reach
• Go-to-market programs through the AppExchange

• Augment cash compensation with non-cash rewards
• to motivate employee behavior and drive
  performance
• Improve and reward performance across sales,
  support, marketing and call center teams
• Move beyond fixed prize rewards and gift cards
• Increase employee performance and retention

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• Introducing the Sales Performance Center of
  Excellence

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Defining an SPM Center of Excellence (CoE)

• A set of resources to facilitate a cooperative
  sales finance business function including
• Proven SPM Implementation Methodology
• Sales performance management best practices
• Industry benchmarking services
• Community, collaboration, networking
• SPM Knowledgebase
• Reusable assets compensation structures and
  rules, business scenarios, templates

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Key Elements of SPM CoE

• People Alignment of sales, finance, HR
  sharing knowledge across teams
• Technology Web 2.0, open standards and APIs,
  broad SPM product portfolio
• Processes Best practices, methodology. Reuse
  for repeatable and sustainable project success
• Knowledgebase Unique content, articles, Blog
  posts and chat from contributing experts

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SPM CoE
Sales Reps

• Sales and Finance can adopt a more centralized
  approach to SPM
• Moving from an
• ad hoc methodology to a more holistic and best
  practices discipline

HumanResources
Finance
Sales Operations
Sales Mgmt
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Benefits of a SPM CoE

• Improved overall business alignment and
  transparency
• Repeatable and sustainable success of
  compensation programs
• Increased accuracy
• Improved process quality
• Deeper insight into business performance
• Leverage industry best practices
• Improved ROI

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Sales Performance Center of Excellencewww.SPMCOE.
com
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SPM CoE Reference Guide

• Overall Implementation Process Methodology
• Planning - Project Checklist
• Analysis
• Design Prototyping
• Testing Unit, System, UAT
• Training

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Xactly ResearchUtilize SPM Benchmarks
Assessments

• Industry intelligence and services to advance the
  sales performance management market.
• Compensation benchmarks and optimization services
  
• Sales Effectiveness Benchmarks
• Sales Productivity Benchmarks
• Sales Profitability Benchmarks
• Peer-to-peer company comparisons
• Custom score cards for measuring performance

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• 2008 Compensation Benchmark Preview

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Key Measures

• What is the make up of your comp plans?
• How do you stack up against similar companies?
• How much pay is at risk?
• How many comp plans should you have?
• How many metrics per comp plan?
• Should you use draws?
• What other comp plan elements should be
  considered?
• How often should you pay?

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Sample Metrics Surveyed
Number of Sales Reps Employed
Average Annual Quota Per Sales Rep
Target Compensation per Sales Rep (Base
Variable)
Variable Pay as a Percent of Total Compensation
Sales Compensation Spend as a Percent of Total
Revenue
Total Number of Employees on Variable Comp
Percentage of All Employees on Variable Comp
How often does your company reassign, reallocate
territories?
Total Number of Compensation Plans
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Average Number of SPIF Programs/Quarter
Sample Metrics Surveyed
Frequency of Quota Assignment Changes
Frequency of Variable Comp Payment Processing
Total Number of Employees on Variable Comp
Error Rate in Variable Comp Payment
Frequency of Comp Plan Reviews/Changes
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2008 Compensation Benchmark

• Average variable incentives paid are .74 of
  commissionable revenue
• More than half (56) of companies performing
  average against goals

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2008 Compensation Benchmark
Less than 10 plans or 20-39 plans most common
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Industry standards recommend 1-5 metrics 44 use
1-3 metrics
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2008 Compensation Benchmark

• More than 90 surveyed have one year plan
  duration with monthly payment frequency
• 68.6 leverage automated solution for modeling
  changes to compensation plans and forecasting
  accruals
• Ratio of commissions to bonus plan metrics is 3-1
• 74.6 commissions, 23.4 bonuses
• Surveyed companies are paying in 64 currencies
  and on average pay in 8 currency types

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Most common 41-60 variable pay aligns with pay
for performance trends
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Xactly SPM CoE Services

• Plan Design Strategies
• Xactly Research Benchmarking
• Change Management
• Plan Effectiveness
• Plan Modeling
• Process Assessments

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Summary

• Power Your Sales Performance by adopting an SPM
  CoE
• Leverage a proven SPM implementation methodology
• Measure and benchmark your success
• Let Xactly help you get started with Xactly SPM
  CoE Strategies and Services

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Matt Grover VP Sales Operations
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Cablevision/Optimum Lightpath Overview
Cablevision Systems Corporation is a leading
telecommunications, media and entertainment
company. Our portfolio of operations includes a
full suite of advanced digital television, voice
and high-speed Internet services, world-renowned
entertainment showplaces, professional sports
teams, and popular national and regional
programming networks.
A business telecommunications services division
of Cablevision Systems Corporation, Optimum
Lightpath delivers converged data, Internet and
voice solutions to businesses throughout the New
York metropolitan area. Its advanced
fiber-to-the-business premises network extends
2,500 route miles throughout the most heavily
inhabited parts of New York, New Jersey and
Connecticut, enabling the company to supply
reliable telecommunications services at lower
prices than traditional offerings.
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Sales Compensation Challenges

• Lack of ability to use sales compensation
  strategically
• Manual compensation management process that
  took 2 -3 weeks from calculation, approval to
  commission statement
• Low visibility into the compensation program
• No audit and commission archiving capabilities
• Needed to integrate with other systems (e.g.
  salesforce)

We had difficulty in implementing the kind of
sophisticated plans that would align tightly with
our corporate goals. We had to make so many
compromises because if we didnt make the
compensation program simple, wed have an
administrative nightmare. - Matt Grover, VP of
sales operations, Optimum Lightpath
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Solution

• Implemented Xactly Incent and Xactly Modeling
• Xactly Incent for Salesforce.com AppExchange
• Single Sign On
• Incentive Estimator / Commission Estimator
• Web-based / True On-Demand Solution

We looked at other sales compensation management
vendors before selecting Xactly, but the other
vendors had a legacy application architecture. We
needed a solution whose reputation in the
industry matched that of our CRM partner
salesforce.com, and Xactly was the best
fit. -Matt Grover, VP of sales operations,
Optimum Lightpath
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Benefits
Xactly is a strategic sales performance
management solution

• Optimum Lightpath was able to
• Enable sales compensation to be leveraged
  strategically
• Automate and streamline the compensation
  management
• process, end to end from weeks to days
• Increase productivity for both the back-office
  and the field by dramatically reducing errors
  and disputes
• Provide 360-degree visibility into its
  compensation program
• Support regulatory compliance efforts through
  centralized archiving
• Integrate seamlessly with Salesforce

We dont have to water down our programs any
more, but can instead align them closely with
corporate objectives and achieve new business
agility. -Matt Grover, VP of sales operations,
Optimum Lightpath
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Whats Next

• Xactly Analytics
• Xactly Rewards for Force.com
• Xactly Benchmarks and Research

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Scott Rames Global Sales Automation Director
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About Dimension Data

• Dimension Data is a specialist IT services and
  solutions provider that helps clients Plan,
  Build, Support and Manage their IT
  infrastructures.
• Dimension Data received over80 Industry Awards
  in 2007

• INDUSTRY Information Technology Services
• EMPLOYEES 10,600
• GEOGRAPHY Global
• USERS 1,760
• PRODUCTS USED SFA, Service Support, Ideas

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Customer Hero Scott Rames
Andrew Briggs, Group Executive of Sales says
Having Scott driving our Salesforce.com
application and future development gives our
group the confidence to know that we are making
decisions on accurate and valuable information to
enable us to navigate through our competitive
waters.
Famed Statistics 92 Login Rate 19 Custom
Tabs 31 Custom Objects Apps Downloaded Xactly,
Exact Target Custom Applications Account
Planning, Opportunity Profiler
Scott A. Rames Dimension Data Global Sales
Automation Director
Sessions Sales/Sales Operations Executives
Unleash the Power of Performance with a
Compensation Center of Excellence Administrators
How Do You Measure Success?
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Key Challenges

• Complex Sales Model
• Lines of Business
• Overlapping Product Families
• Extended Sales Teams
• Manual Commissions Calculations
• 4-8 Weeks
• Overpayments
• Extended Compensation Planning Cycle
• No Correlation to Sales Automation System or
  Quotation System
• Regionally Driven Compensation Model

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Solution

• Identified Pilot Region
• In-Region ERP Expertise
• Surge Capacity
• Demonstrated Critical Need
• Fast Track SAP Account Cross Referencing Project
• Implemented Xactly Incent and Xactly Modeling
• Xactly Incent for Salesforce AppExchange
• Single Sign On
• Incentive Estimator / Commission Estimator
• Common Interface
• Drive Salesforce Adoption

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Benefits

• TBD .
• Africa Go Live Date October 17th
• Plans Available to AMs for Review
• Quota Targets Released in November
• November 25th Services and Solutions Activation
• Functional Requirements Review Critical
• Forced Business to Rationalise Compensation
  Models
• Per Opportunity Compensation Impact

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Why Xactly

• Dreamforce 2008
• Project Management Team Formation
• Critical Requirements
• Must Interface with Salesforce
• Robust Integration Model (Oracle, SAP, CSV)
• Rapid Deployment
• Cost Effective Solution
• Scalable

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Whats Next

• Parallel Systems Management
• Prove Success
• Measure Time Savings
• Add Complexity
• Add Regions

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QUESTION ANSWER SESSION
Christopher Cabrera
Founder CEO
Matt Grover
VP Sales Operations
Scott Rames
Global Sales Automation Director