Incentive Compensation Management – A Case Study

Posted at December 30, 2015 | By: | Categories: Case Studies | Comments Off on Incentive Compensation Management – A Case Study

Our Incentive Compensation Management (ICM) Solution is a software application built to easily manage your sales incentive compensation, reduce the errors & streamline the whole process by further saving your time. For more info, read through…

One of our clients who ran a car dealership, faced issues in adding incentives each month. Their requirement was that we create a system that will remove the complexities in the mentioned process that they handle every month, throughout the year.


The Problem

The problem

The problems, as explained to us by our stakeholders, were:

  • Maintaining the records of targets for all the individual staff members with various roles, along with the individual achievements. Due to miscommunication at times, the incentives would be improperly calculated, hence demotivating the team.
  • Although, that was not the biggest problem. Calculation of their incentive amounts based on the slab rates fixed by the dealership using a classic excel sheet was, in their own words, the most tedious process that they went through each month.
  • There was also a problem of tampering & manipulation of the incentive amounts.


The Challenge

The challenge

  • Simplification of the Process
    The first challenge that we faced was the complexity that had taken way for a not-so-complex process. There was a dire need of separation between the data and its underlying logic.
  • Different Incentives & Slabs
    The Dealership had different kinds of incentives with a different slab for each such incentive. Not only that, the ways in which individual incentive amounts were calculated were different from one another. Generalizing these calculations as much as possible was another part of the challenge.
  • Creation of an easy UX
    Since the salespersons claimed to be less comfortable with technology, our last challenge was to make the user experience as simplistic & easy-to-use as possible. Injecting this new software (however simple it was) to their complex workflow was the crux of our challenge.


The Solution


The ICM Application we built had the following few features:

  • Role-Based Actions
    After realizing that the complexity was due to the reason that all data was visible to all actors included, we separated the functionality available to each person based on their role. This hid all unnecessary data and calculations that a role was not allowed view, thus starting the process of simplification.
  • ‘Behind the Screens’ Logic
    Calculations were all brought to the code thus making it invisible to all the roles included. The only parameters required to calculate the incentive were the targets that were set for each salesperson and their respective achievements. The admin could then download an excel sheet to explicitly show the targets vs achievements report of all the salespersons along with the incentive amount that they have received.
  • Security
    After the salespersons entered their sales achievements for the month, the person with the HR Manager was allowed to login and verify the data entered by the salespersons and lock the data, hence disallowing them to edit their data sometime in the future. And since the data and functionality was already separated based on their roles, that aspect of security was already there.


End Result

  • The product has received a very positive feedback from the client whom we originally built this for.
  • We are currently in process of setting it up for more such vehicle dealerships that have approached us through word of mouth.
  • More features such as reports, integration with CRM, etc., are currently under development.

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