EIM
Compensation Management is not for Sissies
Monday, August 17th, 2009 | Compensation Plans, EIM | No Comments
Any of us who have had the pleasure of being responsible for compensation management can relate to some of the recent events at AIG, albeit on a smaller and hopefully less dramatic scale. If you’re not up to speed, this article will give you the scenario.
Here are some key excerpts:
The disclosures came as AIG was lambasted for about $450 million in bonus payments planned for employees at a business unit that lost $40.5 billion last year. The unit’s woes pushed the company to near-collapse, forcing the government bailout.
“Something is terribly wrong with this picture, and the reckless behavior at AIG must stop immediately,” said Rep. Elijah Cummings (D., Md.), in a statement Sunday. He called on AIG’s government-appointed chief executive, Edward Liddy, to resign over the bonus-payments issue.
The reason we can relate is because this basic scenario occurs regularly at every company that uses variable pay to incent performance. That is, sometimes people achieve on their plans even though the business overall is suffering. And in many cases we have people who qualify for large payouts even though they clearly don’t deserve them. › Continue reading
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SaaS Pricing for Callidus On-Premise Solution
Tuesday, August 4th, 2009 | Callidus, EIM, SPM, SaaS | No Comments
In addition to the financial results Callidus Software’s Q1 2009 earnings call last week (transcript available here) had much other interesting information including mention of some new customers, new products, and employee headcount reduction. One item in particular that caught my attention was a comment by Senior Vice President, Finance and Operations, and Chief Financial Officer Ronald Fior:
When we get to that stage I mean, we’re going to seriously consider and we’ve been actually testing it out, going to more of a subscription-based term license kind of idea for the license side of this business for the on-premises side, because as I already said, there are some certain verticals that just seem to be pretty well stuck on the idea that they’re going to do an on-premises.
What Fior is discussing here is a software as a service (SaaS) like pricing model for the verticals and customers that insist on an on-premise solution. › Continue reading
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EIM Solutions Resist Commoditization with Supplementary Features
Friday, June 5th, 2009 | EIM, SPM | No Comments
What are the standard features of an enterprise incentive management (EIM) software package? David Kelly discusses this difficult question in an insightful recent post on his blog. Kelly points out the ambiguity of the EIM solution relative to the standardized feature set present in general ledger solutions. This is certainly true but is it necessarily a negative? I’m not sure. Of course it is definitely a bad situation if the customer is expecting one thing and does not get it or gets something undesired. Additionally, difficult system delivery issues can arise if functionality confusion causes implementation project scope growth. However, these things can and should be managed by proper pre-sale vendor product evaluation and post-sale system integration. That we don’t have 15 EIM vendor software solutions with the exact same feature set is a good thing. Sure, certain features (plan calculations, audit support, reporting) should be addressed by all packages, but supplementary features are allowing vendors to differentiate themselves and resist the move towards commoditization that has occurred with, for example, G/L packages.
› Continue reading
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Coaching with MBOs during Periods of Revenue Decline
Tuesday, May 26th, 2009 | Callidus, Compensation Plans, EIM | No Comments
In industries particularly hard hit by the struggling economy, even the best sales representatives may appear to be under performing based on the most important sales objective, the sales revenue target. How do you know if sales personnel are doing their jobs when their corporate customers’ budget freezes don’t allow for deals to close? Good sales reps will continue with the proven processes that under normal circumstances allow for them to exceed revenue targets — practices like scheduled check-ins with existing accounts, accurate and timely CRM record keeping, deal / budget qualification, etc. Attention to these items, should allow your sales reps to be first out of the gate when budgets free up and money starts flowing again.
› Continue reading
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