X-Factor Compensation Leaders: How to Be Incredible at Incentive Planning (Allergan)
Sales compensation plan can be a complex process. From compiling a team to piecing together metrics and goals, the job carries an incredible amount of responsibility. Those who work to create a plan for their company must develop a compensation process and incentive plan that will motivate the right sales behaviors to achieve goals, all while driving growth.
Finding the right mixture of compensation requirements is a balancing act, but luckily, it doesn’t have to be a stressful, time-consuming task. As part of our Friends of Xactly (FOX) Community, we’ve spoken with sales compensation leaders to create a blog series about their journeys in sales compensation, best practices, and the Xactly advantage.
Meet The Expert – Randall Lee – Allergan
Who: Randall Lee
Position: Senior Financial Analyst
Time in sales compensation: 4 years
Bio: Randall Lee is a senior analyst with over 25 years experience in the Areas of Accounting, Finance and IT.
Allergan is a leading pharmaceutical company headquartered in Dublin, Ireland. The company conducts pharmaceutical research and is a provider of a number of leading brands and best-in-class products for “central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women’s health, urology and anti-infective therapeutic categories.”
Tell us about your career journey in sales compensation. (How did you get your start? How did you end up where you are today?, etc.)
“My “journey” in Sales Compensation started when I became responsible for forecasting revenue and expenses at Adept Technology, Logitech and Allergan. In the area of expenses, the key drivers were headcount and commissions. How were our Sales team compensated? How were the compensation plans structured so that it fostered the correct behavior (ie., Driving sales versus driving commissions)?”
What are the biggest challenges you face in your role today?
“Creating a compensation plan that recognizes and drives the correct behavior from your sales team [and] understanding the market and customer needs is ongoing. On the international side, [it is challenging] understanding distributor relationships (sell-thru) versus who the end customers are (sell-in).”
How has technology played a role in your evolution as a sales compensation professional?
“Software companies like Xactly have been instrumental in providing the “nuts and bolts” calculation for the Sales team.”
Describe your company’s sales compensation planning process, your role in it, and how Xactly has changed this process (What is your favorite Xactly tip/trick that you’ve learned?).
“Our Sales process really starts “top down” from senior management in terms of revenue growth and opportunities within this space. From there, do we have the Sales team in place to achieve objectives? Creating Quotas, payout tiers and sales price ranges is key. Xactly is probably the best solution I have seen that performs all of these functions.
My favorite Xactly Tip/trick is “Named Relations”. [For example,] example, if John Doe receives credit for $100k sales, we can assign multiple sales rep to John Doe. This ensures that all reps receive the correct amount of sales credit.”
What piece(s) of advice/lessons have you learned on your journey that you would share with your peers or younger self?
“Do not be afraid of jumping into a problem. Find the solution(s) and share with others.”
How do you envision the future of sales compensation? What do you anticipate for 2018 that was different for 2017?
“2018 will be more dynamic. New Revenue Recognition rules will drive how/when commissions are accrued and paid.”
Discover the Xactly Advantage for Your Company
At Xactly, we want to provide an integrated incentive compensation planning process. To do this, we partner with our customers and arm them with the tools they need to combine the necessary data for incentive compensation. When you’re responsible for the compensation of your company’s employees, you should never have to struggle with error-prone spreadsheets or manual commission calculations. Find the right Xactly solution for your business, industry, or role. Schedule your personalized demo today!
Designing Sales Compensation Plans
With careful consideration and strategic design, you can use incentive compensation to inspire your teams and empower them to perform above and beyond the competition.