Increase Financial Firms' Sales Performance & Compliance with Compensation Management

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Increase Financial Firms' Sales Performance & Compliance with Compensation Management facebook.com/perficient twitter.com/Perficient_IBM Twitter.com/Perficient_FS linkedin.com/company/perficient

description

Financial services and banking organizations are challenged with aligning sales performance with corporate goals to drive business growth. In addition to financial performance, one of the largest challenges financial institutions face today is managing the balance of meeting regulatory requirements without potentially disrupting performance. To help your organization manage performance and risk data against regulatory reporting requirements, you need to develop an enterprise-wide governance structure to gain control over sales channel compensation programs. In this webinar, our experts covered: -Challenges around sales performance, Dodd-Frank and compensation governance in financial services -Industry-focused use cases and best practices for sales performance management solutions -Case studies of leading financial institutions implementing sales performance and compensation management Our experts also demonstrated how IBM Cognos Incentive Compensation Management enables organizations to achieve operational efficiency and reporting accuracy, greater data transparency, reduced risk and detailed sales performance analytics.

Transcript of Increase Financial Firms' Sales Performance & Compliance with Compensation Management

Page 1: Increase Financial Firms' Sales Performance & Compliance with Compensation Management

Increase Financial Firms' Sales Performance & Compliance with

Compensation Management

facebook.com/perficienttwitter.com/Perficient_IBMTwitter.com/Perficient_FSlinkedin.com/company/perficient

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Perficient is a leading information technology consulting firm serving clients throughout

North America.

We help clients implement business-driven technology solutions that integrate business

processes, improve worker productivity, increase customer loyalty and create a more agile

enterprise to better respond to new business opportunities.

About Perficient

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• Founded in 1997

• Public, NASDAQ: PRFT

• 2013 revenue ~$373 million

• Major market locations throughout North America• Atlanta, Boston, Charlotte, Chicago, Cincinnati, Cleveland,

Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Los Angeles, Minneapolis, New Orleans, New York City, Northern California, Philadelphia, Southern California, St. Louis, Toronto and Washington, D.C.

• Global delivery centers in China, Europe and India

• >2,100 colleagues

• Dedicated solution practices

• ~90% repeat business rate

• Alliance partnerships with major technology vendors

• Multiple vendor/industry technology and growth awards

Perficient Profile

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BUSINESS SOLUTIONSBusiness IntelligenceBusiness Process ManagementCustomer Experience and CRMEnterprise Performance ManagementEnterprise Resource PlanningExperience Design (XD)Management Consulting

TECHNOLOGY SOLUTIONSBusiness Integration/SOACloud ServicesCommerceContent ManagementCustom Application DevelopmentEducationInformation ManagementMobile PlatformsPlatform IntegrationPortal & Social

Our Solutions Expertise

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Introduction

Hemant JaiswalDirector of Financial Services, PerficientHemant has more than 15 years of experience in information technology and management consulting, advising a large cross-section of Fortune 500 clients in financial services. He manages Perficient’s wealth management vertical.

Chris SkinnerIncentive Compensation Management Solution Architect, PerficientChris is an industry expert in sales performance management and incentive compensation management, with more than 10 years of variable compensation plan design, configuration, reporting and solutions experience.

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Industry-Driven SolutionsG

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Deep Financial Services Domain Expertise

EnterpriseInformation Solutions

FinanceEnterprise Insights

PortalWeb Content

Social Solutions

SOACloud

API Solutions

Company Wide Practices

Deep Financial Services Domain Expertise

BANKINGWholesaleConsumer

Credit UnionsPayment Processing

Trust & CustodyTrade Services

Treasury Services

ASSET & WEALTHMANAGEMENT

Equities & Fixed IncomeSMA & WrapHedge FundsOMS & EMS

Portfolio ModelingPortfolio Accounting

CAPITALMARKETS

Equities & Fixed IncomeFX & CommoditiesFuture & Options

Electronic Trading

INSURANCEInvestments

Customer AcquisitionProperty & Casualty

Life Annuities ServicesClaims Evaluation

UnderwritingConsumer Direct

Business/Technology Solution

Rationalizationand Delivery

Business ProcessImprovement

Program Value,Quality and

Cost Management

ClientCentricity

Risk and RegulatoryCompliance

Finance Transformation

Solutions & Services

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Impact on Financial Institutions

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Compensation Regulation Considerations

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Compensation Regulation Considerations

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Relationship of Compensation & Risk

Compensation and risk must be tied together. The risk taker who bets firm or client capital must bet their current and future compensation.

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CSO Insights - 2013 Sales Compensation & Performance Management, Key Trends Analysis

Current Compensation Environment

Spreadsheets54%

Home Grown(22%)

Commercial Software

(14%)

Manual(7%)

Analyst estimates of variable compensation overpayments range from 2% to 8% (Accenture: 3%-5%; Deloitte: 4%-7%; Gartner: 2%-8%)

Company with $30M in variable comp will overpay $600k to $2.4M every year

How are companies currently calculating

variable compensation?

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Limitations of Existing Solutions

Spreadsheets Home Grown Manual

Labor intensive

Non-centralized

Error prone

Lack of auditing or reporting

Custom coding that few fully understand

Aging legacy systems

Difficult to update

Rely on additional software for reporting

No automation

No functionality

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What is in an SPM Solution?

Central DatabaseHosted locally or in the cloud a single database contains the entire solution

AdministrationProvides audit tracking,

inquiry management, approval workflows

IntegrationExisting client transactional and HR data pulled in seamlessly

Integration Calculation

AdministrationDatabase

Calculation & ReportingAutomation of compensation and analytics calculations. Custom web reports display any variety of outputs

$ £€

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Benefits of SPM Adoption

Reduce errors

Shorten cycle times

Replace technology

Mergers & Acquisitions

New Comp Plans

Business Re‐Orgs

Internal Audit

Compliance

Dodd‐Frank

Risk Reduction

Business Enablement 

Efficiency & Accuracy 

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Cognos ICM

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What is ICM?

Incentive CompensationBuild, model and administer variable pay programs that drive desired sales behavior

Channel Management

Gain a single, accurate view of your entire sales force and all your distribution channels

Territory ManagementManage crediting and frequent sales coverage changes across territories

Territory Management

Quota Management

Channel Management

Incentive Compensation

IBM Cognos ICMVaricent

Quota ManagementPlan and distribute quota targets efficiently across all levels of your sales organization

CRMERP HRIS

$£€

BI Other

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Addressing Compensation Regulation Challenges

Incentive Compensation

Guidelines

Clawbacksand

Forfeitures

Risk Management Processes and

Controls

Communicate appropriate plan documentation to every payee and track their review and acknowledgment.

Automate the recovery of earnings previously paid out on investments now identified as having gone bad.

Multiple solutions for risk management and compliance requirements:• Workflow • Inquiry Management • Auditing

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Technology System

Upgrades

Operate with

Uncertainty

Centralize all compensation processes into a single system whose backend will be dynamically upgraded in the cloud to ensure an appropriate level of support for any level of complexity.

Federal regulators have already approved ICM as a solution for these requirements.

Balance Risk Versus Reward

Modeling of future plan changes and “what-if” scenarios to aid in the development of proper plan designs.

Addressing Compensation Regulation Challenges

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Industry: BankingSales Force: 5,000 payees

Challenges: Communicate role-specific sales incentives to thousands of employees across multiple geographies. Reliance on multiple legacy solutions created inefficiencies. A lack of reliable and timely reporting led to the employees performing their own “shadow accounting”

Why ICM?: Ability to centralize data shared across all compensation plans

Solution Benefits: Increased transparency in incentive tracking Payees have online access to real time reports Increased accuracy greatly reduced number of compensation inquiries Ease of compensation plan design changes ICM analytics assist in smarter compensation plan design

http://www-03.ibm.com/software/businesscasestudies/us/en?synkey=T961508R00948T94

Case Study: Bank of the West

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Industry: Financial ServicesSales Force: 3,200

Challenges: Multitude of home grown systems created an IT-intensive and expensive solution

Why ICM?: Ease of design, “on the fly” scenario configuration and web based reporting

Solution Benefits: Compensation admins no longer rely on IT to make regular adjustments to the system

such as adding new product lines All results are now visible within 48 hours of closing a month instead of over two weeks

for partial results Multi-language support allows reports to be distributed to non-English regions Automated dispute resolution follows a hierarchy-based workflow

http://www-03.ibm.com/software/businesscasestudies/us/en?synkey=Z298172W48404B43

Case Study: Elavon

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Questions?

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Download our White Paper:http://www.perficient.com/Thought-Leadership/White-Papers/2014/Overcoming-Strategic-Challenges-of-Dodd-Frank

• Components of Dodd-Frank and various guidance principles issued by the Federal Reserve Board (FRB) and other regulatory bodies

• Sales performance management (SPM) as a solution to address these regulations

• Benefits of implementing IBM Cognos Incentive Compensation Management (ICM) as a solution to meet the regulatory requirements and guidance principles

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Thank You!

For more information contact:Chris Skinner

[email protected]

Hemant [email protected]

www.facebook.com/perficient

www.perficient.com

www.twitter.com/Perficient_IBM www.twitter.com/Perficient_FS