The Why And How Of Incentive Compensation Management For Your Delivery Teams

Incentive Compensation management

Traditionally, incentive compensation management (ICM) has been a powerful tool for organizations to drive sales performance. However, the modern business landscape paints a different picture. Today, we recognize that closing a sale is just the beginning of the customer journey. A study by the Aberdeen Group found that companies fostering strong collaboration between sales and delivery teams achieve a 24% higher win rate and a 10% growth in average deal size. This underscores the critical role delivery teams play in the overall customer experience. True success hinges on the seamless delivery of services or products, ultimately leading to high customer retention and the potential for future organic growth.

ICM for the Delivery Team:

Extending the benefits of incentivization beyond the sales realm to encompass the delivery team presents a pivotal opportunity for organizations to achieve delivery excellence, uncover hidden revenue opportunities and retain top talents.
master data management MDM

1. Enhanced Sales Performance

By incentivizing the delivery team, organizations cultivate collaboration between delivery and sales units, fostering the identification of potential upsell and cross-sell opportunities.
Precision and Efficiency

2. Precision and Efficiency:

A study by The Hackett Group found that organizations leveraging automation tools for incentive compensation management experienced a 30% reduction in administrative costs and a 20% improvement in accuracy. Critical performance metrics germane to the delivery team can be meticulously monitored, with incentives automatically computed. Leveraging specialized tools such as Certinia streamlines this process, ensuring accuracy and efficiency.

Transparency and Equity

3. Transparency and Equity:

Establishing clear and transparent incentive frameworks obviates ambiguity, fostering an environment of fairness and objectivity in performance evaluations.
Data-Informed Decision-Making

4. Data-Informed Decision Making:

Analogous to its role in sales, an ICM solution furnishes invaluable insights and analytics into all facets of delivery team performance, facilitating targeted interventions for both success amplification and iterative improvement.
employee-engagement

5. Employee Engagement:

Encouraging participation from the delivery team in small-scale sales engagements not only uncovers latent talents but also nurtures a culture of revenue generation that extends beyond conventional sales functions. Research by Gartner reveals that companies with effective incentive programs see a 23% increase in employee engagement. This engagement can lead to a more committed and motivated delivery team, driving better results and customer satisfaction.

Augmented Adoption Rates

6. Augmented Adoption Rates:

An ICM solution holds the potential to catalyze increased adoption rates for Professional Services Automation (PSA) platforms like Certinia, paralleling its efficacy in enhancing uptake of Customer Relationship Management (CRM) systems.

Exemplary Incentive Compensation Models for the Delivery Team:

Effective project delivery hinges upon a spectrum of roles, each bearing distinct responsibilities
Engagement/Delivery Manager:
  • Customer Satisfaction (CSAT) score
  • Employee Net Promoter Score (eNPS)/Net Promoter Score (NPS)
  • Generation of future sales references
Project Manager:
  • Team utilization metrics
  • Budgetary compliance
  • Timely project milestone adherence
Solution Architect:
  • Client feedback on proposed solutions
  • Identification of upsell/cross-sell opportunities
Business Analysts/Developers/Consultants:
  • Client feedback
  • Performance ratings

By harmonizing incentive structures with these pivotal performance indicators, organizations can effectively galvanize their delivery teams toward achieving project success and fostering enduring growth trajectories.

Future-Forward Use Cases
Extending incentive compensation management (ICM) benefits to additional functions such as HR and FP&A roles amplifies the holistic impact on overall company resource planning:
HR:
  • Talent Acquisition and Retention: Incentives tied to recruitment outcomes and employee satisfaction promote talent retention crucial for ERP strategy execution.
  • Training and Development Effectiveness: Aligning incentives with skill acquisition and training program success enhances workforce readiness for ERP system utilization.
  • Employee Engagement: Incentives linked to engagement metrics cultivate a positive culture, facilitating ERP adoption and effectiveness.
FP&A:
  • Financial Performance: Incentivizing accuracy in forecasts and financial metrics ensures reliable data for ERP-driven decision-making.
  • Operational Efficiency: FP&A-driven cost management and efficiency initiatives directly impact ERP ROI and effectiveness.
  • Strategic Alignment: Incentives tied to strategic alignment and value-added analysis integrate financial planning with ERP strategy execution.

In conclusion, extending incentive compensation management (ICM) benefits to non-sales teams such as HR and FP&A proves instrumental in fostering a cohesive organizational culture focused on performance excellence and strategic alignment. By incentivizing key metrics relevant to each department’s role in supporting the ERP strategy, organizations cultivate a workforce committed to talent retention, operational efficiency, and financial acumen. This holistic approach not only enhances the effectiveness of ERP implementation but also drives sustainable business success by ensuring that every facet of the organization is aligned with broader strategic objectives. Ultimately, ICM serves as a unifying force driving collective efforts towards achieving overarching business goals. To explore how ICM can transform your organization’s performance, contact us today.

Tags:

Love it, Share it!

Get the latest articles right in your inbox

Explore our posts

Subscribe To Our Newsletter

Subscribe To Our Newsletter For Exclusive Content And Industry Updates.

Satch Patel, Executive Vice President, MD, UK & EMEA

Satch brings 25+yrs of enterprise global solution experience having contributed to the growth of some of the worlds largest marquee software and hardware giants in the industry from Oracle Corporation, Sun Microsystems, Cisco/EMC, to Apttus & Salesforce.
 
Satch has helped many blue chip organisations realise their vision to modernize their systems from the front office to back office revenue operations to meet the demands of today’s radically transforming and digitally-driven business models, having worked with the likes of Linklaters, CliffordChance, Barclays, RELX Group, Microfocus, Novartis, Siemens, PayPal, Vista Equity Group Companies, London Stock Exchange, TPICAP and Princes Trust.
 
With his leadership approach, experience and passion for helping companies drive transformative change, Satch has a deep expertise in many industries, technologies and best practices across the lead to revenue lifecycle and how driving such digital transformation(s) can improve business growth and increase operational efficiencies  as well as preparing businesses for M&A activities.

Brion Schweers, Board Observer

Brion Schweers is a Senior Vice President of Product Management at Salesforce, currently managing the Revenue Cloud Solution Excellence team. During the past 30 years, Brion has assisted enterprises around the world in transforming their business by focusing on their Product-to-Cash processes. Prior to joining Salesforce Brion was VP & GM, CPQ at Apttus, VP, Sales & Success at A5 Consulting, served on the OAUG ConfigSIG Board and spent 15 years at Oracle in various roles related to their CX and CPQ products. Brion is also the executive Sponsor of Vetforce – Carolinas and is actively involved in the Salesforce Military program where he mentors Veterans and their spouses with actionable, personalized career advice.

Joseph Truhe, Board Member

Joseph Truhe has over 20 years of investing experience. Prior to joining Jefferson Capital in 2013 Joseph was a Portfolio Manager with Whitney Bank in New Orleans, Louisiana, where he oversaw the company’s Trust accounts and served as the Energy sector analyst for the Hancock Horizon Funds. Prior to Whitney, Joseph worked as an analyst and member of the investment committee at HFR Asset Management, a multi-billion dollar hedge fund platform in Chicago, Illinois. There, Joseph reviewed and maintained investment discretion over the firm’s Event Driven and Asia-focused hedge fund allocations. He was also responsible for the expansion of the firm’s Asia-focused fund offerings.  Joseph holds a BA in Economics from Yale University.

Steve Swartzman, Board Member

Steve Swartzman is a Principal and co-founder of CPC. Previously, as a co-founder of C3 Capital, he helped originate and manage over 35 investments, including national brands such as American Apparel, Traeger Grills, and Grunt Style. Steve’s chief focus remains consumer brands and e-commerce enablement businesses, and he currently serves on the boards of Grunt Style, Accel Clinical Research, Spoke Custom Products, Warne Scope Mounts, and New World Natural Brands.

Prior to C3, Steve structured and managed subordinated debt investments at KC Venture Group, and he spent 7 years as a Vice President with Citibank in New York, managing client relationships for emerging markets clients and structuring over $1 billion in complex trade financings. He is a past President of the Midwest chapter of the Small Business Investment Alliance, and he serves on the board of the International Center for Music at Park University in Kansas City.

Steve received a MBA from Columbia Business School and an AB in History and Literature from Harvard College.

He resides in Kansas City, where he was raised, with his wife Evelina and two sons, Harrison and Zandy. When he’s not working, his favorite activities are fishing, golfing, and eating.

Charles Scripps, Board Member

Chad has over ten years of experience investing in dynamic, growing businesses in diverse industries and geographies. His private equity experience includes HIG Capital, which has over $12B in capital under management, and AEA Investors, which manages over $3B of invested and committed capital. While at HIG and AEA, Chad led diligence, structuring, and financial analysis of potential and existing investments, and completed transactions in the industrial products and consumer services industries. Chad also has experience investing in the public equity markets, most notably as a Managing Director at Fox Point Capital, a $1B fund seeded by Julian Robertson of Tiger Management. He invested across a number of industries, including industrials, financials, technology, and consumer products, and led Fox Point’s international research. Prior to focusing his career on investing, Chad was a management consultant at McKinsey and Company, solving strategic problems for the world’s leading companies. Chad earned an MBA with Honors in Finance from the Wharton School at the University of Pennsylvania and a BS with Distinction in Chemical Engineering from the University of Wisconsin-Madison.

Lester F. Alexander II, Board Member

Les Alexander is a partner with Jefferson Capital Partners where he provides mezzanine and equity capital for growth and buyout transactions. Mr. Alexander is a member of the firm’s investment committee and serves on the board of directors of several portfolio companies where he is actively involved in strategic planning and corporate governance. Prior to joining Jefferson Capital, he worked at Advantage Capital Partners where he completed several portfolio company investments and served on the investment committee. Before becoming a private equity investor, Mr. Alexander served as president of Ferrara Fire Apparatus, Inc., a leading fire truck and emergency vehicle manufacturer. At Ferrara, he was responsible for managing a workforce of 450 employees producing over 300 vehicles annually for its domestic and international customers. As an investment banker for 15 years with such firms as Howard Weil, Southcoast Capital, and J.C. Bradford & Co., Mr. Alexander completed over 50 public offerings of debt and equity securities, private placements, and merger and acquisition transactions totaling more than $7 billion for public and private companies in a variety of industries. Mr. Alexander is an adjunct professor at Tulane University and Loyola University where he teaches graduate and undergraduate classes in investment banking, private equity & venture capital, advanced financial management, investments, and entrepreneurship. He is also the board president for Benjamin Franklin High School, a public charter school in New Orleans. Mr. Alexander is the former Chairman Finance of the Association for Corporate Growth (ACG) and served on the global Board of Directors. He is a founder of the Louisiana chapter of ACG and was a recipient of the ACG global Meritorious Service Award and the Louisiana chapter’s Outstanding Service Award. Mr. Alexander received his bachelor of science in Commerce from the University of Virginia in 1989 and his MBA from the University of North Carolina in 1993.

Patrick F. Healy, Board Member

Based in Kansas City, Mr. Healy is a co-founder of C3 Capital. He has been an active private equity investor since 1985 and was a co-founder of C3 Holdings in 1994. Prior to this time, he sponsored and structured equity investments in real estate. He gained extensive workout and restructuring experience as chair of the creditor’s committee of a $1 billion bankruptcy and from being called upon to rescue a publicly-traded company from a major fraud. Mr. Healy was a senior tax partner at Mayer Hoffman McCann, a regional CPA firm, for eleven years. He received a Bachelor of Science in Accounting from the University of Kansas.

Chris Waters, VP of Strategic Sales

As Vice President of Strategic Sales, Chris guides and influences all strategic sales activities at A5 , starting in presales activities, successful sales methodology, sales process, and continued revenue generation and expansion opportunities. Furthermore, he will provide oversight in strategic sales function for the company and develop strategic sales plans that will promote growth in sales and customer satisfaction. Chris has proven his commitment to sales leadership and organizational success through field leadership as National Sales Manager at Deluxe Corporation, Field Sales Manager within the Social / Analytics Cloud at Oracle, US Regional Manager for CPQ Major Accounts at Oracle and now as Vice President on Sr. Leadership Team at A5.

Keith Fox, GM Salesforce Canada

Keith Fox is a software and consulting veteran for the past 34 years. Keith started his career at EDS which was followed by 4-year stint offshore in Bermuda. Keith then returned to Canada where he held a number of progressive sales and technical positions with software companies such as Sybase, BEA, and Oracle. After his stint with Oracle, Keith founded Cloudware Connections, a premier Salesforce consulting partner. 11 years down the line, Cloudware was acquired by A5, and Keith joined as GM for Canada.

Tarun Sharma, Vice President Delivery

Tarun Sharma is Vice President Delivery at A5 and is responsible for customer success, project operations, recruitment, resource utilization, and sales operations functions for Oracle practice. As a business and technology leader Tarun helps businesses develop solution strategies to streamline the sales process and improve customer relations to drive revenues, profits, and build brand loyalty. Tarun has led customers through digital transformation journeys. He has commanded strategic and tactical initiatives to shorten sales cycles, increase deal values and productivity, improve brand awareness and help organizations become easier to do business with. He has helped customers modernize their sales enablement tools and present a single source of information to support an omni-channel sales approach. This includes global roll-out for multiple business units included multi-currency and multi-language. Tarun graduated from Texas A&M University with a Master’s degree in Industrial Engineering.

Adam Rosenfield, VP of Salesforce Practice

As Vice President of A5’s consulting practice – Adam is responsible for both strategic alliances with partners and expanded sales growth through the entire portfolio of A5 services. With over 20 years of Sr. level management consulting expertise – Adam has worn multiple hats in his career including practice development, sales, and client advisory. He has sold & delivered countless enterprise transformational initiatives creating a measurable competitive advantage for his customers. In addition to various technical software certifications, Adam holds an undergraduate and master’s degree in Accounting & Information Technology from the University of Texas at Austin and resides in El Paso Texas with his wife and 3 children.

PJ Alfrejd, CFO

As the CFO, PJ is responsible for all things financial at A5. With over 20 years of experience in financial leadership positions, PJ has worn all the hats required of a growing tech business. His extensive knowledge of the consulting industry, experience with M&A, and strength in operational finance is another catalyst to take A5 to the next level in its growth trajectory. PJ is a CPA with a BS in Accounting from the University of Illinois, Urbana-Champaign, and has held various finance leadership positions at Exodus/Savvis (acquired by Centurylink), Neohapsis (acquired by Cisco), and mFoundry (acquired by FIS).

Vinay Kruttiventi, President & CEO / Chairman of the Board

As the CEO of A5, Vinay plays an active role in all aspects of day-to-day business operations. He is also actively involved in establishing a strategy and vision for the company. As a true customer advocate with Salesforce and Oracle product development, Vinay is actively engaged in various industry user/special interest groups. Since founding the company in 2004, Vinay has grown the business into a leading Salesforce, and Oracle partner focused on multi-cloud transformations.

Vinay has successfully implemented and architected CPQ solutions and multi-cloud complex transformation projects for various Fortune 500 companies since 1996. He has a strong authority over industry, process, and technology in Configure-Price-Quote and ERP applications. Vinay graduated from Osmania University with a Bachelor of Engineering degree and JNTU (Jawaharlal Nehru Technical University) with a Master in Technology degree.