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good afternoon North American audience and good morning to you pack guy everyone is just joining great yeah I see a bunch of people jumping on hello everyone my name is Sarah bellman I'm the customer success manager here in our North American offices in Santa Monica California as everyone is just jumping on now we're about to get started with our webinar titled herding cats how to design a plan everyone can agree to for those of you who've joined a performance center webinar in the past you're probably familiar with our presenter David Marshall who's the CEO of Performance Center David has decades of experience in this space including creating Performance Center 10 years ago to actually manage the calculations for these plans but also has a lot of experience and expertise in building out and designing these plans we also are going to have some feedback from our resident cat in this office Carol Caldwell our sales director who will give some insight into what those decision-makers who are going back and forth on your sales compensation plans are thinking so David on that note I'll let you take it away thank you Sara these are decades of experience centuries ok so yes I was all about how to manage the plan design process and so if you're a happy camper sales comp plan designer as this handsome young man is here you might be looking at or hearing a lot of messages maybe even conflicting messages from your colleagues from your key stakeholders across the business you know people saying you know maybe finance the saying the plan is costing too much or CEO so we've got new business imperative this year we've got to achieve you've got other people maybe sales or just throwing their arms up and said we've got to start this whole thing with a blank sheet of paper maybe the plan isn't driving the behaves we want you know maybe IT or you and the systems oh god the data isn't any good you know sometimes you'll hear there I say Carol you know for the sales director rocks up from a new company and says up the competition they've got a much better plan I saw this other plan in operation why aren't we doing that so you've got all these different different voices different stakeholders and with sales comp it does affect so many people across the whole business I would involve so many people across the business that sometimes it can feel a little bit like herding cats and for those of you who maybe watch the Super Bowl of a few years ago I just thought I just play this little video just to get us into the mood for today because you know it's an oldie but a goodie you ain't take about 15 seconds this man right here is my great grandfather he's the first cat herder in our families burden cats don't let anybody tell you it's easy anybody can hurt cattle hold them together ten thousand half-wild Shorthairs that's another thing all together being a cat herder is probably about the toughest thing I think I've ever done I got this in this morning right here and if you look at his face they just ripped to shreds you know you see the movies yet hear the stories it's I'm living a dream not everyone can do what we do I wouldn't do nothing else it ain't an easy job but when you bring a herd into town and ain't lost to one of them ain't a feeling like in the world [Music] UDS managing the complexities of the digital economy there you go when you start your next plan design maybe you might want to play that as an intro to get people in the mood but it's about pure gold some things and that but anyway so let's just an so imagine we are kicking off a planned design process and and here's a not uncommon case study during the thread of you know what would seem with a lot of companies on the journey so imagine I'm you're heading up it's an ICT company that pays its account managers a percentage of out of there OTE for their quota atonement meanwhile I've got some sales execs are more focused on new business and over the annual contract value but there are various kickers for you know long term contracts and different product categories meanwhile sales management and maybe sales support and engineers and Commission overlays we know roll-ups of sales and there's crediting and territories and whatnot and then you've got different products for attracting special rates and etc etc etc particularly as companies mature or grow over time you get this sort of a blight in your sales compensation scheme if isn't curated effectively and so that happy guys turn in slightly more sad person planning this planning phase and so now we've got maybe 20 odd different plans 400 salespeople 200 plans for a thousand and when we say different plans not to say no different rates we're talking structurally very different schemes so it's highly complex you know we're hearing the maybe customer churn is getting worse but we're not we enough new business you know gonna motivate the sales team to sell the new digital offering there's another thing we're going to look at in the new year compensation cost of sale as 11.3% I was actually dying about Commission cost is increased from last year the quote isn't you know the Salesforce is saying the quotas and territories aren't set right and and furthermore you are selling estranged it's got a lot more collaborative now you know why are we paying these salespeople you know this individual Commission should we when you team based or so you could again you've got all these competing messages so where do you start yes I keep cuddly these cats out there how do you get it right on the same page where do you actually start and the mistake that a lot of companies make is I really don't have a frame of reference for how to go about this I jump straight into the pain point sales people maybe aren't getting paid enough so you know we do we crank up the accelerators are we they jump straight into perhaps the wrong part of the program and die so when I take you through today is firstly to look at you know what are the effect what does an effective review actually look like what are the success factors and then we're going to dive into a framework that you can take away not fully used to help you heard those cats and your next plan process so first one is stakeholder engagement obviously this is all about stakeholder engagement and effectively facilitating and capture ideas opinions and constraints constraints are probably the most important things everyone wants everything but there's always constraints in business so the next one is a grade Skype it's actually most important what is not on the table for a review there's a cake point you know shared language actually getting around talking on the same page and the same language for how they talk about sales comp actually using data to support your planned process rather than everything being based on intuition or hearsay obviously project discipline is important you know if you're going to have a successful design review project you've got a project discipline and finally you know this idea of you know building on the document build rather than to starting I hate it when I hear the word I let's start with the blank sheet of paper and particularly for established organizations there's a lot of heritage the history there that you can build on a lot of learning to build on starting with the blank should the paper almost sounds like a cop-out certainly bring open minds and new ideas but don't stuff the blank sheet of paper so I'm so had that's all very well and good so yeah six key success factors but what what I want to take you through now is a framework for how you actually I can achieve a lot of and we call this our ready-set-go framework it's really 15 steps to best practice after you on the audience table this might look familiar but we hope it is it just gives you a really nice clean simple frame of reference as you guide people through the plan design process and and we call it ready set go because they are one of the key mistakes I think companies make is they they don't go ready set and go they actually set I'm gonna go back to ready or they they go before they're ready to sell I got things out of order and so what this framework does is it first starts off with first principles and that is you actually get your stakeholders or your case tables you could've given me a lot of room to actually agree on the purpose what is the actual fundamental purpose of the sales comp plan for the new year what are the key goals we need to achieve what goals do the sales plan actually need to achieve what are the design principles underpinning the plan and so these are your non-negotiables and then particularly these are things that can be talked to constraints so for example we have a design principle a company a that we will have an uncapped commission opportunity and that can be controversial that you know finance might disagree or sales will for that but there will be disagreement but it needs to be agreed what actually is the principle you can't leave these things implicit I've got to be explicit in your design process upfront not when you're about to launch your plan now total pay you know be painted with the right level in the market for our HR strategy pay mix what's fixed and variable so what is the right fixed and variable mix what does the pay curve look like how aggressive do we want to be in terms of upside versus own below quota what does the bell curve they're gonna look like and then if then you want them the key thing here is that from a herding cats point of view if you can get every side if you can get everyone in agreement on those five things expect especially the first two things it will then be a lot easier to then move into the process of designing your clients because you know what when we get to this next phase you've got a lot of this stuff in place already you know what are the performance measures that you can actually measure at your company what metrics are we going to use how are we going to weight those measures in terms of importance the mechanics they're they're the mechanics so how do we connect performance to reward so you've already got a percentage of quite a retirement model or you've got a you're paying a percentage of Commission or you've got a hard rid of them you've got qualifiers and when I saw your mechanics are actually how you know the actual calculation but you can there's no point talking about accelerators or different models there's no magic model that's going to somehow help you achieve your objectives next year what you what there is is a set of models that align to the purpose and principles that you set in the ready phase so that you've agreed in a really folks are timing you know how often do we want to pay salespeople monthly quarterly half-yearly annually targets and quotas is the final yeah this is the big one you know if you can you can get all these other things right but if you don't get your quota setting method correct you're gonna have problems and so so really from a plan design process they're the ten key steps that we recommend you go through to effectively herd cats so you actually get everyone on the same page and that they don't go running off in different directions and then the last five is actually the implementation and so the business we're in is actually helping companies ultimately implement by getting their data together managing data relationships running the calculations to support the plan communicating out to the sales force and then finally you're interesting I think one of the interesting things about this framework if you to think about is plan as is then the idea that you then evaluate directly against the purpose you know too often I think we see sales comp administrators and what have you having to generate reports on the fly and I give me this candy that but you know it should be very clear from day one that you know we've agreed what what the objectives of the planner therefore we should be measuring valuating against those a group the great objectives and and again I mean one of the things that we've observed over the time is that the biggest mistake companies make when it comes to a plan design review particularly for that said gentlemen we looked at before is that under pressure people jump straight to the mechanics we need yeah there's there's a great new model from over the road we saw in some competitive we should use that model we shouldn't change exile rows we should change the kicker's we should do this to that it's all pointless if you don't have if you're not ready if you don't have your foundation is your purpose principles and so forth in place so that's so that framework as a way of actually dealing particularly with four of these key success factors we talked about it is a framework for stakeholder engagement particularly that facilitation facilitating discussion in a productive and focused manner particularly around shared language the onion oh I've seen this a lot with our customers where you know here a customer talking about how is this some is this an issue of mechanics where as an issue of measurement you have quite often ich plan is just might descend back to the mission we can't exactly measure things there was a go right back to our or is this inconsistent okay let's go back to our core purpose and principles are we what we're doing now what what has been proposed is that consistent when we agreed it's a benefit of this framework you know greed scope again it actually helps you define scope and I'll show you that on the next slide what I mean by that and you know document build actually build on this now particularly that an idea of you know knowing what your objectives are and over time you're actually measuring against those objectives the idea is that when you know you're not the only time you go into this plan review process you're gonna be doing again in 12 months probably and 24 months and so it just has you know the years roll on they come around pretty quickly and um it's a crying shame to actually start with a blank sheet of paper and not build on all the all the great stuff you've already had these stakeholder meetings before we're the Greek key things you should then come back and review them the following year rather than getting people in a room and go okay let's start again you should be building on what you've got okay someone getting up on my horse a bit here but down but using that framer here's an example of on how you can um how it's effective to use this framework you know so so you can sit down with your internal customers and say okay here you know so you're the key things that we've agreed on to get people to effectively sign off on something like this you might say you know what we've all agreed that achieving our digital goals is not as absolutely crucial this year and we've really got to lift our game on you business and margin retention is key interestingly what's left off there is customer churn that's obviously a customer churn is really important but from a sales compensation plan point of view there might there might be an agreement that we are absolutely focused all our design decisions should be weighted towards those three goals you're then from a from a purpose from a principles point of view you know a principle you're given that sad gentlemen before a principle might be we've got a simplify the plans I hear this a lot we've got a simplify then you get people got a cold turkey and I say we just need one plan but then what you might say is all that we need we've got different roles in this organization so we need a plan that's simple but it's configurable to those different plans but we've got you know a universal plan that can be dialed up for different roles as opposed to five ten twenty very different schemes there's a principle that you know we want to heavily reward above target you know maybe you have a principle that says you've agreed that yes we understand that the world of sales is changing that's becoming more collaborative you've got to work at your sales engineers and it's not just the heroic salesperson on his own making the deals fast we all agree that our plan should be roughly wounded 60% individual 20% teen and maybe another 20% on some sort of strategic market and that's an example thing that's really important agree because you can guarantee as pressure gets applied during the year you know people will sort of suddenly have a fit and go well why are we doing this yet you can bring them back to the basic principle say we agreed you know this is the sort of waiting that we're going to have we're not going to go fully to a team model or fully tuned you might have something that looks like this you might say look title pay is not in scope this year and that can be if you can get agreement up front on that that can be very handy because you know every now and again throughout the process the design process you can hear people bringing up issues that relate to total pay but it's helpful if you can actually agree what because you can't do it you can't revolutionize everything in the one plan year that's helpful to really try and narrow the focus on some key issues in your plan design process Carol here can I just make a quick question it was while you're on that topic we know the sales comp plan is probably the most powerful tool a company could have and critical shifts as a business can be executed through changes to the comp plan and you know we hear from working with so many customers you know how they're aligning customer retention with Commission trips what are some of the best practices that you're seeing at that foundation planning stage how can an organization ensure that they're selecting the right metrics and influencing the desired sales behaviors who are they bringing to the table that's a couple of questions there I think sometimes you know the right metrics are gonna be determined by whatever greed to pay the right girls it's not the other way around so and how do you agree the right girls but yet you've got to bring the right people to the table so I think of the thing you're raising their curls are dumb you know you need to be bringing in the key stakeholders at the beginning to agree the purpose and the principle so the VP of Sales they've been sales UPS sales comp HR all the key players need to be involved up front of beginning to often what you see is you go back to a reset go framework yeah maybe the sales comp plan person was ready but the home it wasn't until we got to communicate in the go phase sales really got a heads up on what was going on so yeah it's about bringing the stakeholders in upfront in the ready phase if we look at sets yeah so here under set mistake I would point out the key measures what are the clean mechanics that we're going to use you know from a timing point of view we pay monthly that's not in scope to change that you know but quite often with planned design reviews maybe the payment frequency is a big point of contention and so you then call it upfront so you've got a yeah this is just I guess like a worksheet for helping people think about what are the key issues that we need to cover off in the design process so under go it might be automating the process or moving off exhale into a software like Performance Center may be communication needs to improve again under a value and I think every every business can do a better job from what I've seen do a better job of actually clarifying their objectives our front and then aligning their analytics and reporting to those objectives rather than just producing reporting analytics as an end in its own right okay so look I've given a time where we're going into the detail of it at here you'll get a copy of the video and more than happy to share information with people after this webinar but we've also got these worksheets and really help you know these like discussion points you know in a planning workshop to help you what are the key questions we address against each element in the framework and then you know the certificate think about what must be agreed against those key elements likewise when we get to the set phase you know what are the key really key questions what does the plan design going to look like and then when we get to go we talk about what again one of the key things we've got to address in how we actually implement implement the scheme so so that's we've got what we've tried to do today was cut from showing you what I enjoyable entertaining videos actually provide an overview of a framework for thinking about how do we get everyone on the same page and indeed you're gonna get them on the same page you need a single page like this that actually very clearly articulates what are the key boxes to tick as we move through the design process and it's intended to be sequential so you can keep people moving towards the end goal and at the end of the year you do it all over do it all over again so let us know if you'd like to drill the bit deeper and we'll cut videos but more happy to I feel questions the end of this or by our email talked more about the plan design process thank you so much David I do have a quick question from someone who wrote in asking just for some advice on when they should be starting conversations when they should be having those first conversations in the ready category you know how how long before their new financial year start how long before they finalize the plans is a good time to pull those decision-makers in yeah that's a string question but certainly we see companies start about 30 days out she's probably too late but typically in the last quarter he really should be having these discussions so if you already feel new financial year starts in January he really should be scheduling these workshops you're not about to go through that ready phase with these stakeholders because you're gonna need to iterate over that so that you're in so by the time you get to December you've moved through to set and you're actually in a planned sign-off phase that answer that ok great Mike you think that answered the question but I'm any any of the folks who did join the webinar today you will be getting a full video of this presentation and do you feel free to reach out to us with any questions on anything we went over today or just for advice as you're going through this process so thank you all for joining actually there's a couple more last-minute questions one person is asked can you send a link of the cat take that as a yeah so you can also have a go copy of the like yes we will send out if you type into our YouTube herding cats you'll easily find the EDS heading codes video there's another one here any advice on how to simplify bonus schemes when you have multiple companies within the group with different girls okay so this is an interesting one around complexity so you've got let's just think this out alone again we've got simplified bonus schemes we have multiple companies so it's across so multiple companies and those companies have different goals well that's interesting when I think I'd suggest normally within a company it depends on the culture I guess of the great guy autonomous each company within the group is but you know really if there's they have a fairly autonomous culture than you'd expect that each separate company really should be running their own ready set phase and then coming up with our own bonus plans to address that but if what I'm reading this question is it needs to be more coherent across the group then I think you know you really need to you can go top-down to try and get that Universal clean consistent approach be gonna need to get stakeholders from each company in the group involved to buy and because again if you don't no matter how much authority you've got from the top you're gonna get that hurting cat situation so I'd recommend going running a Ready Set type bar workshop with representatives from each company in the group okay no re so thanks for participating and we'll be doing another webinar we will return like James Bond in early October I think and have a good day Cheers