How Telstra is designing sales compensation plans to incent the world

Designing sales compensation plans is not easy.

How Telstra is designing sales compensation plans to incent the world It doesn’t really matter how large your company is or your industry. When you combine different business units, geographies, and various types of payees, you are sure to have complexity.

If anyone can speak to the complexities of designing sales compensation plans and implementing an automated system, it’s Telstra. With 7 business units in 20 countries and over 9,000 payees, any company can learn from their sales compensation project. Check out the recent webinar where Andrew White, Head of Sales and Service Incentives at Telstra, and Benjamin Gray, Senior Program Manager at Telstra, spoke about how they made the compensation plan align with their corporate vision, purpose, and brand.

Below are some of the questions attendees asked that we thought would be worth sharing with all of you.

Q: Did you view the workflow aspect of CallidusCloud as a MAJOR advantage from switching from your old processes? I would think that prior process was quite manual, with lots of files and emails. Audit of payments would seem to be easier now.

A: Yes, it was a significant factor. We definitely find that having all incentivized payees in a single system is really useful from a workflow and audit perspective. For us, every year brings new changes (evolutionary or revolutionary) that need to be accounted for. But beyond just workflows and audits being improved, the entire process is far more efficient, payments are accurate, and our data is secure.

Q:  I would believe that taking extra time to implement the ENTIRE CallidusCloud system instead of a piecemeal approach to get it implemented quickly has many advantages. Addressing change management ONCE, for example.

A: Definitely agree—this turned out to be a very prominent finding in our product implementation review. The challenge we faced was understanding what the existing business units in-house builds and support structures were to begin with. Then, it was implementing the incentives management components we acquired through CallidusCloud.

Q:  How flexible was the incentive system data model, i.e. mapping your incentive data sources to the incentive system data model?

A: Most of the complexity with our data mapping and extracts was driven by the volume and variety of our existing data sources, to mention the high frequency of compensation plan changes. Because our data was decentralized across disparate systems, data integration wasn’t possible between the old systems. This was a deciding factor for us in selecting CallidusCloud since we were able to securely get all of our data out of these disparate systems and into our CallidusCloud solution. CallidusCloud’s Landing Pad transforms and stages the data for processing in Commissions.

Q.  How will CallidusCloud be integrated with SAP’s product portfolio?

A: Telstra currently utilises a major SFX feed from an existing SAP system for staff positions, base pays, and hierarchies. We utilise many different systems within Telstra, and currently SAP and CallidusCloud are two that are integrating well together.

Q.  How has implementation of CallidusCloud impacted frontline sales?

A: The sales force having visibility of targets achievement and performance at monthly or quarterly intervals for year-to-date performance has been helpful. Implementing CallidusCloud Commissions had the added benefit of focusing our corporate awareness on the sales compensation plans structure. In some areas, this increased the individual sales staff awareness of the plan details and mechanics that enable them to maximize their earning potential. And finally, having improved payment accuracy certainly pleased frontline sales reps as well!

Watch our webinar to learn more about our suggestions for designing sales compensation plans.
By Jennifer Kling | April 6th, 2018 | Commissions

About the Author: Jennifer Kling

Jennifer Kling

Jennifer Kling is Sr. Product Marketing Manager at CallidusCloud with over 16 years experience in sales and marketing roles in the high-tech industry. As a product marketer, she is responsible for applying market research to product messaging. She loves a good debate - whether it is over the most effective sales incentives or the Oxford comma.