6 Reasons Why the C-Suite Should Pay Attention to SPM (Part 2)
August 09, 2018
Part 2: Building a Stronger Company From the Office of the CFO
In part 1 of this blog series, I talked about three ways that Sales Performance Management (SPM) tools strengthen a company’s sales team by equipping them with better sales analytics, territory and quota management tools, and engagement strategies. In the second blog, we explore reasons why SPM tools are essential for the CFO.
Highlighted below are three considerations that illustrate the value of SPM beyond the core capabilities mentioned in part 1:
Consideration 1: SPM allows you to adapt to change with agility and flexibility
We all know that in order to survive in business today, with all the changes that are happening, we need to not only react when change occurs but we also need to be more proactive in our sales strategy as we approach and anticipate change.
Retail is one of the most volatile and disruptive industries today. Change occurs constantly in the way buyers make decisions. New startup retailers keep appearing in niche markets. Change and disruption continue to happen at a rapid pace with online retailers impacting the traditional brick and mortar stores. I could go on and on about change in retail, but change happens regardless of the industry.
Likewise, the insurance industry is changing constantly, including the types of policies insurance organizations are offering as well as the launch of multiple new products and services every quarter. Agility and flexibility are critical to meet the on-the-ground realities that might entail changing the measures in incentive compensation plans, realigning the sales territories, or assigning sales reps to accounts in a different way.
SPM can address these challenges (what I like to call “change challenges”) and help keep C-level executives on course by executing the sales plan even when the IT needs change or adjustments to sales plans are necessary.
Consideration 2: SPM provides transparency and visibility of sales performance
As a CSO or sales executive, you want to provide the sales team with visibility to their commissions and bonuses, their team and individual performance, any quota attainment metrics, and many other performance metrics that sales managers and sales reps need to understand to meet their goals.
Having a comprehensive view of sales performance, transparency, and visibility across the enterprise simply drives better results. Sales managers can align sales quotas with revenue targets, coach sales reps better, and increase sales motivation and focus.
Likewise, by investing in SPM, those in Finance have a complete picture of the health of the organizations, make better future-facing decisions, and increase visibility into sales performance.
SPM gives the marketing department the ability to align marketing spend and campaigns where they are truly needed. SPM also helps HR collaborate on workforce requirements – whether helping to close any territory coverage gaps, distributing unassigned quota, or getting the right number of sales reps in the right sales roles quickly.
SPM provides sales performance transparency and visibility across all functions.
Consideration 3: SPM helps ensure that the organization is in compliance with regulations
We see new regulations being introduced frequently and the challenge of meeting and demonstrating compliance with these regulations is difficult.
Take, for example, the banking and financial industry where there are strict rules on how incentive compensation is calculated and paid, especially in light of the fiduciary ruling(link to OS fiduciary blog). New rules need to be enforced as to when a bank employee can receive their full commissions based on the performance of the bank – whether at the time of payment, or perhaps it may be required to hold back some of the payments until that bank is at a certain level of performance.
Likewise, consider the state rules that are in place for retailers that enforce the payment of commissions or salary. In some states, there is a mandatory requirement to pay whichever calculates higher. There are regulations imposed on every organization in every industry and SPM can help C-level executives with audit and compliance requirements to avoid fines or worse consequences.
Hopefully, the considerations I’ve provided for why C-level executives and sales leaders should explore the value of SPM resonate and give you something to discuss within your organization. To learn more, download this white paper: The benefits of IBM sales performance management for C-level executives and sales leaders.
To learn more about IBM Sales Performance Management (SPM) solutions, visit https://www.ibm.com/industries/sales-performance-management.