The comparison to ICM best practices and recommendations on how to improve our processes allowed us to think strategically about taking our incentive compensation program to the next level.
OpenText Corporation is a Canadian company that develops and sells enterprise information management (EIM) software. Headquartered in Waterloo, Ontario, Canada, OpenText employs 8,500 people worldwide, with a sales team of over 1,000 reps and revenues in excess of two billion dollars. OpenText needed to take a fresh look at its internal processes and proactively identify areas where efficiencies could be gained in order to support tactical and strategic growth from an incentive compensation perspective. The primary challenges that OpenText was facing included:
- Non-value added activities in the administration process
- Data integrity issues
- Reporting components managed manually outside of the Xactly solution
- Manual data fields
- Inability for leadership to monitor the performance and effectiveness of their incentive plans
With the goal of identifying gaps in their incentive compensation process and creating an action plan to address their top challenges, OpenText engaged with the Xactly Strategic Services team to complete an Incentive Compensation Management (ICM) Assessment. The assessment of their sales compensation administration process provided OpenText with the opportunity to compare their processes and resource efficiencies to industry best practices and determine where tactical and strategic improvements could be made.
After completing the assessment project, OpenText was able not only to identify key process improvements that would provide substantive time savings to their compensation administration each period, but also to eliminate non-value added activities such as time spent on data manipulation and payroll file compilation. OpenText was also able to develop an action plan using recommendations from the assessment to ensure the process improvements identified would be acted upon in a short time frame. The four primary benefits that OpenText gained from completing an ICM assessment are:
- Elimination of manual data feed processes
- Definition of reporting strategy to communicate results and provide analysis to leadership using the incentive compensation and performance data in Xactly
- Increase of sales end-user adoption with the technology
- Improvement of process efficiencies, such as utilizing new DELTA processes to help with incentive calculations process times