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Sales Metrics and Compensation
Program Advisory #12
January 26, 1994
PURPOSE This is the TWELFTH in a series of Advisories that you will
receive in order to update you on the Sales Metrics and
Compensation program.
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WHAT'S NEW
JANUARY 26
TOPICS:
1. RECOGNITION Q&A
2. REWARDS ADVISORY
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Q&A INDEX FOR
JANUARY 26 RECOGNITION
1 FY94 Digital 100/Decathlon Rules
2 Spouses/guests at Digital 100
3 Name change - DEC100 to Digital 100
4 5 of 6 year qualifier change for Decathlon
5 Reasons for changes
RECOGNITION
Contact: Mike Allen @AKO
1. Should qualitative goals be used in the point calculation for
determining Digital 100/Decathlon winners?
>>> 1. The Recognition Architecture indicates that only quantitative goals are
required to achieve Digital 100/Decathlon. Therefore, achieving
quantitative goals is the only requirement.
It is recommended that development/quality goals be considered in
performance reviews.
2. Why are spouses or guests not invited to Digital 100?
2. In the past, Digital 100 had many different formats around the world.
Digital 100 is now a business focused, consistently implemented
territory wide event to recognize Sales People who have achieved their
quantitative goals. The 3 day event will emphasize the recognition of
sales people among their peers.
3. Why has the name changed from DEC100 to Digital 100?
3. The new name, Digital 100 is in line with our 'branding' approach which
was described in July 1993.
4. Why has the 5 Digital 100 achievement in 6 years been removed as a
qualifier for Decathlon?
4. In the past you could win a variety of ways. Now there is a single
consistent worldwide way to win. Digital wants to celebrate outstanding
achievement; that means being in the top 10% of Digital 100 winners.
5. How do I know, as a sales manager, when I can use the General
Recognition Programs?
5. Each Territory has to fund the General Recognition Programs. You should
discuss with your Territory Compensation Management the funding that is
in place.
6. Did you change the recognition programs as part of another cost cutting
process.
6. Not entirely. The recognition programs reflect the changes that sales
is going through. The move to single set of rules worldwide, the move
to a business focus, the consistency with the new variable compensation
plan for sales; these are some of the reasons that changes have been
made. In the current business climate costs have to be considered, but
that was not the driving force behind the changes.
SALES
RECOGNITION
ARCHITECTURE
The following five Sales Recognition programs are described in this
Rewards Advisory.
1. Spot Recognition
2. General Recognition
3. Digital 100
4. Decathlon
5. Leadership Recognition
Additional information on the Programs can be obtained through the
local Sales Operation Management who may contact Sales Metrics and
Compensation Program Office in Worldwide Sales Operations.
The descriptions of the Spot and General Recognition Programs have
been extracted from the "Recognition Program Design Principles" which
is available through local Compensation Management.
1. SPOT RECOGNITION PROGRAM
INTRODUCTION
Spot Recognition Awards are local programs to recognize special
contributions.
PURPOSE
Spot Recognition Programs provide local recognition for a significant
achievement in a sales situation.
The award can be approved locally and requires that one level of local
management above that of the recipient approve the award.
ELIGIBILITY
All sales people are eligible for this award.
AWARD
The maximum value of the award to any person will be less than 0.1% of
the average salary of ALL EMPLOYEES in the country.
AWARD FORM
Letters, plaques, mugs, etc. No cash.
2. GENERAL RECOGNITION PROGRAM
INTRODUCTION
General Recognition Programs provide more reward and recognize
extraordinary contribution which significantly impact a business
entity or part of one.
PURPOSE
These awards provide management with opportunities to highlight role
models through public recognition of excellence in sales leadership.
The award can be approved locally with at least two levels of
management approval above that of the recipient.
FUNDING
The funding for this program is to be provided locally and can be up
to 0.05% of the country's TOTAL base salary.
ELIGIBILITY
All sales people are eligible for this award. Recipients are decided
locally.
AWARD
An amount equal to 1% of the average salary of ALL EMPLOYEES in the
country is the maximum value any one employee may receive in any one
year from this Program. The intent is to deliver the full value
(after tax) of the award to the employee.
AWARD FORM
The award can take the form of cash, travel, event, merchandise, other
cash equivalents.
3. Digital 100
INTRODUCTION
Digital 100 is the foundation Sales Recognition Event and is held
annually to recognize a Sales Person's achievement of 100% of his or
her quantitative goals.
PURPOSE
To reward, recognize and motivate all sales people who have met their
fiscal year quantitative goals.
ELIGIBILITY
All Sales Coded People who have an approved goal sheet.
CRITERIA
Achievement of 100% of the Sales Goalsheet quantitative goal which has
been in place for no less than 6 months of the fiscal year.
EVENT
Digital 100 is a Territory wide, 3 day, mid-week event for sales
people. Territories have an option to hold more than one event for
geographic reasons. Approval to hold more than one event in a
territory must be obtained from the Area Vice President.
The event is a winners only event. No spouses or personal guests will
be invited to attend the event.
The event will be a business meeting, hosted by the Territory Sales
Manager. The emphasis will be on business while providing recognition
and motivation to the winners.
The awards banquet will be the forum in which the awards are presented
by the Territory Sales Manager.
A guidance document describing the content and agenda for Digital 100
will be distributed to Territory Sales Operation Management.
SUMMARY
- Digital 100 is a consistent worldwide implementation of the
foundation Sales Recognition event.
- Digital 100 is a winners only event; spouses or personal guests will
not attend.
- The only way to achieve Digital 100 is through attainment of 100% of
the fiscal year quantitative goals.
4. DECATHLON
INTRODUCTION
Decathlon is the single worldwide event to recognize the
best-of-the-best in Sales who are in the Top 10% of Digital 100
winners.
PURPOSE
Decathlon recognizes, rewards and motivates the Top 10% of Digital 100
winners and their personal guests.
ELIGIBILITY
To be eligible to attend Decathlon a Sales Person must meet the
following criteria:
- Sales Coded (Telesales assignments are not eligible to attend
Decathlon but are eligible to attend Digital 100).
- Achieved Digital 100.
- Approved goalsheet effective for 9 months of the fiscal year.
- Digital employee status is maintained through the recognition event.
- No deferrals are permitted. Exceptions will only be granted by
Territory Managers.
SPHERE OF COMPETITION
- Candidates compete within their own sales territory to be in the Top
10% of Digital 100 Winners.
- Candidates compete within their own category; competition category
for each candidate must be specified.
- If a candidate changes to a new category during the fiscal year, the
competition category for award will be the longest serving category.
- Competition categories are territory wide by job type which must be
consistent with the Sales Jobs as described in the Worldwide Sales
Metrics and Compensation Framework.
- Within the competition categories, territories may sub-categorize as
appropriate with the approval of the Sales Metrics and Compensation
Program Office in Worldwide Sales Operations.
SUMMARY OF CHANGES
- Single consistent worldwide way of winning Decathlon.
- Elimination of Five Digital 100 awards as a means of winning.
- Elimination of a points system of winning Decathlon.
(e.g. no Digital 100 points, no business management points, no
carry-over points).
- Elimination of Special Assignment category.
- Sales Associates are now eligible.
EVENT
There will be one single worldwide Decathlon event for the Top 10% of
Digital 100 winners and their personal guests.
This 6 day event will be held in an exceptional location at a first
class luxury resort. During the event, Digital Senior Management will
have the opportunity to interact with the attendees through planned
activities which may include business sessions, awards dinners, gala
evenings and reception s.
5. LEADERSHIP RECOGNITION PROGRAM
INTRODUCTION
The objectives of this program are to recognize outstanding business
leadership, people management, and business risk taking which results
in profitable business growth. The program will foster two way
communication between the Sales Leaders of Digital and Senior
Management.
PURPOSE
Through the recognition of outstanding business leadership the sales
leaders are provided with opportunities for development and
communication among themselves and with Corporate Executives.
ELIGIBILITY
The top 10% of Sales Managers in a territory who have demonstrated
excellence in sales leadership. Each candidate must have achieved
Digital 100 in the previous fiscal year.
CRITERIA
Candidates are nominated by Territory Managers, based on excellence in
leadership, supported by Area Management Teams , and approved by the
Corporate Marketing Forum.
EVENT
This exclusive, 4 day, single worldwide event will be held once per
year for attendees and their personal guests.
The event is business focused with opportunities for the attendees to
meet and work with their worldwide peers and Senior Management.
The event will be hosted by the Vice President, Worldwide Sales and
Marketing.
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