For any incentive compensation (IC) program to be successful, a skilled team is required with right mix of technology, process and business expertise. It is very important for this team to understand the importance of quality and build a strategy to incorporate appropriate quality framework into broader operational paradigm.
If you’re a Sales Operations leader in the pharmaceutical industry trying to manage the monthly or quarterly Incentive Compensation calculation process for your sales force with nothing more than a homegrown spreadsheet-driven solution, this scene is probably all too familiar to you.
Many small and medium sized pharmaceutical companies still rely on excel spreadsheets or home-grown script based solutions to manage sales incentive calculations for their salesforce. There are many limitations with these solutions which Aurochs solution suite can help with without breaking the bank. Here is an infographic explaining differences between Aurochs Software and Excel Spreadsheets using various parameters around outcomes, people, process and technology. This is largely applicable for other home grown script based solutions as well.
Several factors needs consideration when justifying investment into an incentive compensation solution as they may have impact on the selling time, motivation etc. Aurochs has created a standard model for calculating cost of using an ineffective incentive compensation management system which you can tweak to your business situation. Use it to estimate the cost impact of using an inefficient IC system and build your business case for implementing an industry standard solution around it.
SOX and it’s equivalents (EFPIA code) require companies to establish, document and adhere to internal financial controls and proactively report on any gaps. The primary objective of compliance is to increase financial transparency and accountability by assigning responsibility to executive leadership and board members.
Christopher Godwin, an expert with 12 years of experience in pharmaceutical domain practice areas like sales force effectiveness, sales force alignment optimization, incentive compensation, business intelligence and analytics has joined the Aurochs Software Advisory Board.
In the third part of this series, we will discuss the other aspect of the centralization process. HQ prefers to create a global incentive compensation plan design and structure. This may be considered as taking a “framework” approach from which regions and countries may pick from a menu of plan components.
In this part of the IC Centralization series, we will focus on the strategy to create a global incentive compensation plan framework and drive the design process from HQ.
In recent times we have seen an increase in calls for greater geographic centralization in the Incentive Compensation function within global pharmaceutical companies. The aim generally is to strive towards HQ driven incentive compensation administration and defragment IC management across geographies within the organization.
Sales incentive compensation plans, like any other business strategy evolve in accordance with changing needs of the business. If this evolution does not happen at the correct time, it leads to a significant financial implication in terms of lost opportunities. Therefore it is very important to identify the correct time to review the IC plan.
Aurochs Software launches its Quota Setting solution- a self-service module that helps pharmaceutical companies to efficiently set sales targets for their sales force.
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