Enterprise Incentive Management

Organizations that deploy Enterprise Incentive Management (EIM) are able to tightly align employee, partner, and dealer behavior with corporate objectives in order to increase revenue and profits. Specifically, Enterprise Incentive Management refers to the modeling, administration, and reporting of all forms of non-fixed (e.g., salary) or variable pay.

EIM is mission-critical — it drives the behavior that supports organizational strategy. Incentive compensation is one of the largest line items on the enterprise P&L — in some cases, greater than 10% revenue. But for most large enterprises, managing incentive payments to employees, distributors, agents and channel partners is a monumental task that has the following challenges:

Many enterprises still struggle using spreadsheets, or try to work with other financial systems not designed for managing incentive compensation. As a result, they lose millions of dollars a year due to inaccuracies or mistakes in payouts, and risk demotivating valuable sales people and channel partners through delays and re-dos.

In addition, the lack of a proper solution prevents many enterprises from gaining full value from their incentive compensation programs — the ability to more strategically and competitively manage sales resources.

• Increased business risk due to an inability to plan, model and forecast effectively. Without EIM, sales incentive plans and decision-making information is locked away in multiple systems, including spreadsheets. This leads to an inability to make fact-based decisions when evaluating the best sales incentive strategy.
  
  
• Missed revenue and cost management opportunities due to an inability to execute timely and accurate sales plans. Because sales plans are hard to create and manage, incentives are out of line with corporate initiatives, such as new product introductions, resulting in revenue lost through missed opportunities.
  
  
• Reduced sales and incentive effectiveness due to lack of visibility into performance. The sales team often lacks clear insight into their pay for performance, resulting in lack of alignment and sales days lost through shadow accounting. The finance and sales ops team fail to maximize performance because they lack the analytical tools to understand the effectiveness of sales incentives.