Wacker Neuson: Freedom to focus on business drivers, not ICM management
April 11, 2019
Wacker Neuson, a manufacturing company headquartered in Germany, once had all of its incentive compensation management (ICM) hanging on a single thread - a sales compensation administrator who possessed all of the knowledge about the system and processes. Wacker Neuson recognized that they were carrying too much risk with the existing program and conducted an internal assessment. Their end goal was to improve their ICM solution, as well as to put proper documentation in place to mitigate risk.
After considering their options, Wacker Neuson made the decision to outsource the operation of their ICM program through OpenSymmetry’s managed services offering, OS EDGE. An OS EDGE team was trained on Wacker Neuson’s system, checking it for redundancy and ensuring that it maximized the resources and processes available in order to reduce costs.
The OS EDGE team developed Standard Operating Procedures and took over management of Wacker Neuson’s incentive compensation reporting, processing, incident management, and quarterly business reviews. The result? Wacker Neuson was freed up to focus on impactful business drivers while having confidence that the daily management of their ICM system was in good hands.
By inviting OpenSymmetry (OS) to assess, improve, and own their ICM program, Wacker Neuson saw improvements in six key areas:
1. Process Efficiencies: By applying best practices such as automating HR updates in the ICM system, OS eliminated unnecessary manual processes. Additionally, by configuring the native ICM password functionality, OS streamlined a once inefficient process of managing ICM passwords outside of the system.
2. System Efficiencies: By identifying key areas to streamline the technical configuration, OS made recommendations to reduce IT dependencies and quickly and easily make small plan changes.
3. Data Integrity: By aligning data fields and making recommendations to update SAP queries, OS increased the accuracy of customer and transaction data that was loaded. OS also made recommendations to automate data imports for a streamlined process.
4. Reporting and Communication: The OS team gave recommendations to improve real-time reporting, giving Wacker Neuson the ability to make better informed and more timely decisions. They also identified an opportunity to streamline communication for faster and easier commissions processing and approvals.
5. Program Management: By identifying additional resources and setting up a comprehensive documentation process, OS reduced the risk that once came from having just one compensation administrator hold all the keys to the ICM system.
6. Cost Efficiencies: By outlining best practices for managing exceptions, OS made the ICM program more efficient and decreased program management costs that once came from having a compensation administrator who spent countless hours configuring unwieldy rules to catch each and every uncommon exception.
Partnering with OpenSymmetry’s OS EDGE team to operate their ICM program empowered Wacker Neuson to focus on their core business. They can focus on high priority organizational initiatives while having complete confidence that they have a best-in-class and cost-effective ICM solution. To learn more, read the full case study.