mercredi 30 mai 2018

Fair Sales Management - How about the Uplift transparency ?

Uplift, did you say Uplift ?

This sales target processing has been implemented for years within Oracle and other companies (reference here)

This process ought to secure a manager's hierarchy achievements based on his team individual statistical unavailabilities (resignations,illness, maternity leave, deal conversion rates, dismissal...).

However, the increase in employee "rotation" and the pressure on sales achievements, generates an increase in the Uplift practice -- Leading to even more people leaving the company.

Let's have an example :

Peter C Sales VP receives a 300 M$ Quota.
He's eager to go to the excellence Club. He wants to fund a new dedicated sales Hunt group without impacting his P&L. He expects from this an additional cost of  30 M$ and chooses a 10% uplift for his regular sales teams.

He distributes 110 M$ to his 3 direct sales directors.

Viktor R, Sales Director, is a fair guy, he takes no uplift he distributes 110 M$ - No Uplift.
Brian M. Sales Manager receives 20 M$ - He knows he's got 2 people leaving, one pregnancy. He's quite unsure to have an approval for hiring in before some time. he over distributes quotas by 20%, so 24 M$ target to his team.
So an individual in Brian's team will receive 1.2*1*1.1 overquota distribution.

Going through those maths, you may overdistribute very quickly at a large scale, securing the company results and margin.

And what if a manager takes more than 20% uplift - Who knows, who checks, who claims ?

"Oracle Treats its employees fairly" - Shouldn't this be proven through transparency in the Compensation Systems ?

Shouldn't you ask the GIC teams ?

Should the FY19 T&C really be accepted  before having a serious discussion on what is a fair management practice ?

1 commentaire:

  1. I am not in sales but I was a solid performer making my “dashboard targets” and getting several attaboys from internal and external customers alike. So it was a shock to get “the call” back in 2015. This post tells me something that I always suspected and that is if everything else is equal, the person who has been on medical leave is targeted, or that is counted heavily against them. Almost like they are saying: this person cost us money in the past, will likely in the future so dump them while you can.