Common problems in incentive management
Many companies experience significant pain managing sales incentives because existing software systems are limited or inadequate. Common remedies to inadequate software include:
- Patches to non-specialist systems
- “Dumbing- down” plans to match the data
- Running calculations in Excel workbooks
- Building small custom systems from the ground up
Unfortunately, each of these solutions requires significant compromise: ineffective incentives, significant labor costs, overpayments, complexity, cost creep, etc. An application specific software platform such as PerformanceCentre facilitates optimised incentives, efficient incentive reporting, and improved sales results.
Exactly what problems can PerformanceCentre help to resolve?
Lack of management control
- Low or non-existent system flexibility/ responsiveness
- Inability to view data relationships
- Difficult to trace data calculations
- Difficult to audit/comply with legal requirements
- Lack of scenario planning or forecasting
- Lack of process documentation
- No security or control of sensitive business data – gets scattered throughout organisation
Sales force (de)motivation
- Constrained (known inferior) incentive plans
- Delayed reporting and delayed payments
- Inaccessible data
- Invisible calculations
- Low confidence in payment accuracy
- Poor sales force engagement
Financial costs
- Over-payments
- Time consuming and costly manual administration processes
- Lost sales
- System costs every time plan changes
