2009 BSD Regional Sales Conference. Presenter Name BSD Contract Sales 2009 Deployment.
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2009 BSD Regional Sales Conference
2009 BSD Regional Sales Conference
Presenter Name
BSD Contract Sales 2009 Deployment
Confidential
Strategy Statement & Redeployment OverviewStrategy Statement• Provide our customers with a differentiated value proposition that improves loyalty and drives profitable growth across all customer segments.• To achieve project 10x12, we will improve our presence in the SMB segment and create a better balance of customers by utilizing improved market research, competitive intelligence and financial analytics.” Redeployment Action Items
SMB- Deployment is Critical for Success in 2009– The Small customer segment yields over 23 percentage points greater operating profit contribution, vs. Global
customers– “Growing the file” in SMB, via a dramatic increase in new accounts/customers buying is critical for 2009
Improved Productivity of the Sales Force will be vital for 2009– Accelerated new account acquisition via the Territory Manager model (more reps selling new business) & TAM
support– Reduced cost of sales and the need for efficiency
• Public Sector, Large Accounts & Global teams will be focused on more selective acquisition & driving improved profitability & segment expertise
– Simplified deployment structure is intended to drive new SMB business & improve retention • Moving from 48 distinct compensation plans & job descriptions to 16
Increased “Customer Touches” and Engagement (via Better Field Coverage Combined with Multi-Channel Contact Strategy) is Key
– A well-defined and executed multi-mode contact strategy coverage model is being developed for every customer segment
There Is A Need to Understand Our Competition More Effectively– Value Proposition by customer segment needs will be clearly defined, differentiated and executed
2009 Compensation and Goaling Considerations– Adjustments to the plans relative to the balancing of acquisition & retention will be important – Plans will emphasize the criticality of new business, file growth, and include a team component
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– Driving a dramatic number of new Small & Medium Business accounts (30,000+) will be critical to our success in 2009
– Redeployment enables significantly more resources to be focused on selling new business and growing the base
File QUANTITYFile QUANTITY
File QUALITYFile QUALITY
Cost to ServeCost to Serve
– Increase average spend per ship-to, through utilization of Contact Strategy initiatives & customer lifecycle model
– Increase IMU% in large segments by:• Improving the product mix to higher margin items• Improving pass-through rate of cost increases
– Maximize efficiency and effectiveness of current sales team
– Leverage lower cost channels (e.g., TAM, Catalog) with the right customers and right contact approach
– Multi-channel approach – not just shifting between channels, but managing the customer experience across channels
Criteria for evaluating 2009 plan
2009 Deployment Plan Must Meet Certain Criteria to Ensure Success
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2009 Deployment & Market Coverage
Resources• Feet-on-the-Street Reps
•Deployed in select markets•Prospect to 10-100 WCE’s•Immediate transition to TAM
•TAM (Inside Sales)•Manage $3K-$15K current and new customers•10-50 WCE Prospecting & New Accts (pilot)•Appointment setting for TM’s
• Territory Development Mgr.•Manage $15K-$150K customers (private & public)•Prospects for new business (20-500 WCE’s)•Geographically-based
Resources•Major Account Manager
• Manages $150K+ private sector accounts. No formal teaming• Responsible for partnering with BDMs, once accounts “graduate”
•Major Account BDM•Develops new business in the $150K+ range•Teaming is not in place in ’09
•Global Accounts Manager•Manages $1M+, multi-CSC private sector accounts
•Global Accounts BDM•Develops new business in the $1M+ range (multi-CSC)
Market/Customer ProfileAccount Size: Small = $3K-75K; Med=$76K-150K Prospects: 20 WCE’s-500 WCE’s
Market/Customer ProfileAccount Size: $151K-Multi $MMProspects & Customers:500 WCE’s+
Convert Grow Retain
Market/Customer Profile Account Size: $150K+ Prospects: 500 WCE’s+
Resources• Vertical Mkt. Manager
•Manages $150K public sector accounts & sells new >$150K+ public sector accts •Specialist/Trusted Business Advisor in the Public Sector segment
•NAM- US Communities•Deployed in regions
•NAM- Federal Gov’t.•Deployed in regions
• Director, Public Sector • Deployed in geographic regions• US Comm. Dir.• Federal/GSA Director• State Govt. Director
Small & Med. Business
Large & Global (Private Sector) Public Sector
Convert Grow Retain Convert Grow Retain
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Resources.•Solutions Development Mgr.-Furniture
• Approximately one per RSD Market, where required• Serves as a customer- facing resource and as a training resource
• Furniture TAM and TAM Manager
•Focused on supporting SMB customers & simple coded orders
•District Sales Manager •2-3 for the U.S.
• National Director•Intended to serve as a field and corporate interface for the category
•Support Structure•Focused on supporting profitable “in-stock” furniture business, as well as “simple” Non-codes
ResourcesSolutions Development Mgr.-DPS
•Consolidation of all roles within DPS to one sales position, to align with the other solutions category positions• Reports into the Reg. Sales Manager, DPS
•National Accounts Manager-DPS
•Responsible for partnering with the Global Accounts teams on high value DPS opportunities
•Regional Sales Manager-DPS
•Focuses on managing DPS reps in a larger geography.
•Director, DPS Sales •Accountable for division-level sales in the DPS category•Partners with Field RVPs and RSDs
Convert Grow Retain
Resources
• While there won’t have any dedicated resources to Break Room & Coffee, we will continue to aggressively introduce all of our existing and new customers to our Break Room and coffee solutions
•Break Room and Coffee growth expectations will be included in the ’09 compensation plans
Furniture DPSBreak Room &
Coffee
Solutions & Overlay Organization
Convert Grow RetainConvert Grow Retain
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Deployment Guidelines
* Note: Pertaining to the TDM position, the “60 New Accounts Billing at least 500 per month” pertains to the Team goal aspect and is a guideline.
Feet-on-the-Street (FOS)
Will be focused on high prospecting opportunities in high density areas
New accounts 10-29WCW – sign up and migrate to TAM Contract
New Accounts with 30-500 WCW – sign up and transfer to Territory Development Managers
Revenue counts against base business, rather than the new business goal– Target of 4 accounts/ week/ person at 10+WCW
Territory Development Manager
Manage accounts between $15K and $150K annualized spend (excluding Parented Large, Global, and Public)
Base territory size is ~$2.0M (Range from $1.8–2.4M).
Territories do not vary based on prospecting opportunity/ time focused on acquisition at market specific level? (Ideally, there will be different territory sizes (i.e. primary and secondary markets – different ranges)
New Business - $160K* in annual business , 60 accounts billing at least $500/month (guidance)– FOS Acquired accounts with 30+ WCW will be assigned to the Territory Development Manager– Accounts 10-30 WCW – co-managed by Teritory Manager & TAM “Inside Sales Partner” – TDMs will focus on 30+ WCW accounts – sign up and keep – New Accounts with less than 30 WCEs will be jointly supported by a TAM “Inside Sales Partner” – Expectations:
• 1 buying account/ week ($6K/yr)• 6 appointments/ week/ rep• Base Business: uphold contact strategy expectations• Targets-- Base $2.0M ($1.8 to $2.4); flat growth for ‘09; new business $160K, 28% blended IMU
expectation
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Deployment GuidelinesMajor Accounts Manager, Major Accounts BDM, GAM, Global BDM – Large/Global Accounts above $150K annualized spend (excluding Global/Public)
– Rule: In-Market - no multiple CSC– MABDMs revenue applies to in-market and out-of-market sales– Optimize field assignments @ ship-to level – Global Accounts Manager -- Accounts $1M+ in annualized spend (Multiple CSC)– TAM; or local – potentially SC, 1-2 Specialists that just manage Global Accounts
Vertical Market Manager (Public) TAM will manage $3-15K (non-parented) Public accounts. TAM will have a group that is dedicated to Public accounts. Territory Size for VMM ~$6M Goals will be focused on growth (higher than Territory Manager base growth). VMM reports into DSMs in the RSD markets VMM targets Public Sector prospects above 500 WCE’s
Furniture 1 FAM per RSD market reporting to RSD (~20 when necessary). Keep 1 Furn TAM Manager with 7 TAM Inside People – focused on SMB growth (Point Person w/ Merchandising) Maintain Furniture Sales Director and potentially one DSM for Furniture in the East & one in the West Very limited support office staff (designer, 3-4 support)
Design, Print & Ship (DPS) Similar to ’08 Deployment, with exception of DPS pilots
Tech Depot Tech Depot sales integrated into baseline goals & Tech Depot becomes a category similar to DPS, Furniture & Coffee
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Deployment GuidelinesTAM
TAM base will include accounts active in the last 90 days with annualized spend between $3 and $15K.
Accounts between $3 and $15K that have NOT had activity in the last 90 days but with purchases in 90-180 days, will be added to TAM Win-Back/ Prospecting Programs and targeted to Territory Development Managers.
Accounts between $3 and $15K that have NOT had activity in more than 180days will be added to Mail Stream and potentially TAM/Territory Development Manager Prospecting Lists.
TAM Goals will align to the TAM goals of the field/District Sales Managers.
New accounts with 1-30 WCW (from Mail/FOS/TM) will immediately be dually-assigned to TAM
Besides TAM Contract, TAM will also run Win-Back, Mail Stream Inbound (after Customer Service), Welcome, and Prospecting Programs
TAM base will be pre-assigned before TOPS.
– The Field will have the ability to pull but not push existing accounts into TAM, based on current customer knowledge/ relationship. However, business rules will apply for new customers.
Mail Stream
Base of Mail Stream will be defined as accounts (rather than ship-tos) with annualized spend between $0 and $3K and
active in the last 90-120 days. Mail Stream predominately excludes Global, Public, and parented accounts.– Accounts in Mail Stream will be potentially be attached to a TAM-Inbound group and Inbound calls to will be routed initially to
customer service with the option to be escalated to TAM Accounts between $0 and $3K that have NOT had activity in the last 90-120 days, may potentially be added to Win-
Back/ Prospecting Programs or will be re-targeted to Territory Development Managers.
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Go-to-Market Deployment & Segmentation Details Acquisition- New Accounts- ”New to File”
Share of Wallet Growth & Retention
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Existing Customer File will be Covered with Clear Growth and Retention Accountability
Source: OD Data, Teradata; Excludes Recency considerations
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Global Acct AM
BDM III
AM I
AM II
AM III
BDM I
BDM II
Global Acct BDM
BSD Contract Sales Proposed Positions-“From & To”
Current Positions New PositionNEW Positions
Territory Dev. Mgr.
Major Acct. Mgr.
Major Acct. BDM
Global Acct. Mgr.
Global Acct. BDM
Nat’l Acct Mgr
DSM
RSD
Nat’l Acct. Mgr (Public)
Nat’l Acct. Mgr (Private)
DSM
RSD
Vertical Mkt. Mgr.
2009 BSD Regional Sales Conference
2009 Incentive Compensation PlansPresenter Name
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BSD 2009 Incentive Plans
Objectives:
Easy to understand for all associates
Motivating
Simple to implement and administer
Aligned to business objectives & results (SMB Growth, Customer Retention & SOW Growth)
Objectives and targets clear and communicated timely
Consistent over a longer period
Affordable
Plans are effective & market competitive
Effective at driving desired business results.
Objectives:
Easy to understand for all associates
Motivating
Simple to implement and administer
Aligned to business objectives & results (SMB Growth, Customer Retention & SOW Growth)
Objectives and targets clear and communicated timely
Consistent over a longer period
Affordable
Plans are effective & market competitive
Effective at driving desired business results.
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Key Messages - 2009 Compensation Plans
1. The 2009 BSD Incentive Compensation & Goaling plans are straightforward, with a increased focus on top line growth via new account commission incentives.
2. Top-line growth and share of wallet expansion are key components, based on the continued strong mix of sales & IMU.
2. The 2009 plans re-establish a focus on our key solutions components, inclusive of DPS, Technology, Furniture and Break room.
3. The plans remain market competitive and are designed to motivate, inspire and reward job proficiency and sales excellence.
4. The plans incorporate team components that help drive overall business performance, rather than simply individual performance.
5. The plans are affordable and will help us drive towards our objectives of driving new business in the SMB segment, improving profitability in all customer segments and reducing our cost to serve.
1. The 2009 BSD Incentive Compensation & Goaling plans are straightforward, with a increased focus on top line growth via new account commission incentives.
2. Top-line growth and share of wallet expansion are key components, based on the continued strong mix of sales & IMU.
2. The 2009 plans re-establish a focus on our key solutions components, inclusive of DPS, Technology, Furniture and Break room.
3. The plans remain market competitive and are designed to motivate, inspire and reward job proficiency and sales excellence.
4. The plans incorporate team components that help drive overall business performance, rather than simply individual performance.
5. The plans are affordable and will help us drive towards our objectives of driving new business in the SMB segment, improving profitability in all customer segments and reducing our cost to serve.
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Territory Development Manager - TDMTerritory Development Manager - TDM
• Both Sales and IMU% YTD attainment must be at least 90% to earn sales, IMU% or New Accounts incentives/ commission.
• YTD IMU% on new accounts must be above 23% to earn commission.
• Team Sales of 95% must to met to be eligible for the team sales component.
• Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions. This only includes TDM new accounts.
• Team Sales and Team Solutions will be paid regardless of individual performance.
Component Weight Target Incentive $ Paid
Sales 16.67% $4,000 Quarterly YTDIMU% 16.67% $4,000 Quarterly YTDNew Accounts 41.67% $10,000 Quarterly YTDTeam Sales 12.50% $3,000 Quarterly YTDTeam Solutions 12.50% $3,000 Quarterly as EarnedTotal 100.00% $24,000
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Territory Development Manager - TDMTerritory Development Manager - TDM
• Both Sales and IMU% YTD attainment must be at least
90% to earn New Accounts incentive/commission.
IMU% RangeCommission
Rate
0%-22.99% 0%
23%-25.49% 5.5%
25.5%-27.99% 11.0%
28%-32.99% 22.0%
33%+ 27.5%
New Account Incentive(Paid on IMU$)
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New Account Criteria - TDMNew Account Criteria - TDM
What is our definition of a “TDM New Account”?• Inactive accounts in Q4’08 at the account level• New Account Set-Ups (never ordered before) – starting with new
accounts from December, 2008• Exclude TAM and FOS as new account; revenue credit applies to
account base only• Reactivation Bucket – TAM pushes to Field, in which case it would
count, total account ownership transfers• For Major Accounts, we will continue the rolling 12 months
When do we start counting a “TDM New Account”?• Dollar one > $1 on account
How long do we “track” a “ TDM New Account”?• For fiscal 2009 beginning with new wins December, 2008
What are Team New Accounts?• Total number the new accounts opened by TDMs in the District• Team Goal = 5 new accounts per TDM per month
What are Team New Accounts?• Total number the new accounts opened by TDMs in the District• Team Goal = 5 new accounts per TDM per month
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Territory Development Manager Examples
TDM90% attainment on base, $500k new accounts
Revenue IMU% New Accounts Team TotalGoal 2,160,000 28%
Actuals 2,300,000 28% 500,000
Attainment 106.48% 100.00%
Incentive 4,960 4,000 30,800 6,000 45,760
TDMGrew base 12%, only 60k new accounts
Revenue IMU% New Accounts Team TotalGoal 2,160,000 28%
Actuals 2,300,000 28% 60,000
Attainment 106.48% 100.00%
Incentive 4,960 4,000 3,696 6,000 18,656
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Major Accounts Manager - MAMMajor Accounts Manager - MAM
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• Team Sales of 95% must be met to be eligible for the team sales component.
• Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions.
• Team Sales and Team Solutions will be paid regardless of individual performance.
Component Weight Target Incentive $ Paid
Sales 37.50% $11,250 Quarterly YTDIMU% 37.50% $11,250 Quarterly YTD
Team Sales 12.50% $3,750 Quarterly YTDTeam Solutions 12.50% $3,750 Quarterly as EarnedTotal 100.00% $30,000
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Major Accounts Business Development Manager - Major Accounts Business Development Manager - MABDMMABDM
• YTD Sales attainment must be at least 90% to earn commission. YTD IMU% must be above 17% to earn commission.
• Team Sales of 95% must be met to be eligible for the team sales component.
• Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions.
• Team Sales and Team Solutions will be paid regardless of individual performance.
Component Weight Target Incentive $ Paid
New Accounts 75.00% $30,000 Quarterly YTDTeam Sales 12.50% $5,000 Quarterly YTDTeam Solutions 12.50% $5,000 Quarterly as EarnedTotal 100.00% $40,000
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Major Accounts Business Development Manager - Major Accounts Business Development Manager - MABDMMABDM
IMU% Range Commission Rate Commission Rate
0%-16.99% 0.00% 0.00%
17%-18.49% 2.50% 3.00%
18.5%-19.99% 4.75% 6.00%
20%-24.99% 9.50% 12.00%
25%+ 12.00% 15.00%Sales Attainment 90%-124.99% 125% +
New Account Incentive (Paid on IMU$)IMU% Range Commission Rate Commission Rate
0%-16.99% 0.00% 0.00%
17%-18.49% 2.50% 3.00%
18.5%-19.99% 4.75% 6.00%
20%-24.99% 9.50% 12.00%
25%+ 12.00% 15.00%Sales Attainment 90%-124.99% 125% +
New Account Incentive (Paid on IMU$)
• YTD Sales attainment must be at least 90% to earn commission.• YTD Sales attainment must be at least 90% to earn commission.
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New Account Criteria- Major AccountsNew Account Criteria- Major Accounts
What is our definition of a “ Major New Account”?• Inactive accounts in Q4’08 at the account level• New Account Set-Ups (never ordered before) – starting with new
accounts from December, 2008
When do we start counting a “ Major New Account”?• Dollar one > $1 on account
How long do we “track” a “Major New Account”?• For the first 12 months after first order• Accounts opened in 2008 that have not graduated will continue to be included until
12 the months have passed.
What are Team New Accounts?• Total number the new accounts opened by TDMs in the District• Team Goal = 5 new accounts per TDM per month
What are Team New Accounts?• Total number the new accounts opened by TDMs in the District• Team Goal = 5 new accounts per TDM per month
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Vertical Market Manager - VMMVertical Market Manager - VMM
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• Team Sales of 95% must to met to be eligible for the team sales component.
• Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions.
• Team Sales and Team Solutions will be paid regardless of individual performance.
Component Weight
Target Incentive $ Paid
Sales 37.50% $11,250 Quarterly YTD
IMU% 37.50% $11,250 Quarterly YTD
Team Sales 12.50% $3,750 Quarterly YTD
Team Solutions 12.50% $3,750 Quarterly as Earned
Total 100.00% $30,000
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Service ConsultantsService Consultants
• Sales YTD attainment must be at least 90% to earn the incentive.
Component Weight
Target Incentive $ Paid
Sales 100.00% $3,500 Quarterly YTD
Total 100.00% $3,500
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District Sales Manager - DSMDistrict Sales Manager - DSM
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• Team Sales of 95% must to met to be eligible for the team sales component.
• Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions.
• Team Sales and Team Solutions will be paid regardless of individual performance.
Component WeightTarget
Incentive $ Paid
Sales 37.50% $17,250 Quarterly YTD
IMU% 37.50% $17,250 Quarterly YTD
Team Sales 12.50% $5,750 Quarterly YTD
Team District Solutions 12.50% $5,750 Quarterly as Earned
Total 100.00% $46,000
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Director of SalesDirector of Sales
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• Team Sales of 95% must to met to be eligible for the team sales component.
• Team Sales and Team Solutions will be paid regardless of individual performance.
Component Weight
Target Incentive $ Paid
Sales 40.00% $20,800 Quarterly YTD
IMU% 40.00% $20,800 Quarterly YTD
Team Sales 10.00% $5,200
Team Solutions 10.00% $5,200 Quarterly as Earned
Total 100.00% $52,000
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Global Accounts Manager - GAMGlobal Accounts Manager - GAM
• Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component.
• Team Pocket Margin % and Team Solutions will be paid regardless of individual performance.
** Dependent on ability to track
Component WeightTarget
Incentive $ Paid
Sales 40.00% $14,000 Quarterly YTD
Pocket Margin% ** 40.00% $14,000 Quarterly YTD
Team Solutions 10.00% $3,500 Quarterly YTDTeam Pocket Margin% ** 10.00% $3,500 Quarterly YTD
Total 100.00% $35,000
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Global Business Development Manager - GBDMGlobal Business Development Manager - GBDM
• Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component.
• Team Pocket Margin % and Team Solutions will be paid regardless of individual performance.
** Dependent on ability to track
Component WeightTarget
Incentive $ Paid
Sales 40.00% $18,400 Quarterly YTD
Pocket Margin$ ** 40.00% $18,400 Quarterly YTD
Team Solutions 10.00% $4,600 Quarterly as Earned
Team Pocket Margin% ** 10.00% $4,600 Quarterly YTD
Total 100.00% $46,000
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National Account Manager – Private - NAMNational Account Manager – Private - NAM
• Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component.
• Team Pocket Margin % and Team Solutions will be paid regardless of individual performance.
** Dependent on ability to track
Component WeightTarget
Incentive $ Paid
Sales 40.00% $16,800 Quarterly YTD
IMU% 40.00% $16,800 Quarterly YTD
Team Solutions 10.00% $4,200 Quarterly YTDTeam Pocket Margin% ** 10.00% $4,200 Quarterly YTD
Total 100.00% $42,000
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National Accounts Manager – Public - NAMNational Accounts Manager – Public - NAM
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• Team Sales and Team Solutions will be paid regardless of individual performance.
• Team: Region
Component Weight Target Incentive $ Paid
Sales 40.00% $16,800 Quarterly YTDIMU% 40.00% $16,800 Quarterly YTDTeam Solutions 10.00% $4,200 Quarterly YTDTeam Sales 10.00% $4,200 Quarterly YTD
Total 100.00% $42,000
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District Sales Manager – Global - DSMDistrict Sales Manager – Global - DSM
• Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component.
• Team Sales and Team Pocket Margin % will be paid regardless of individual performance.
**Dependent on ability to track.
Component WeightTarget
Incentive $ Paid
Sales 40.00% $18,400 Quarterly YTD
Pocket Margin% ** 40.00% $18,400 Quarterly YTD
Team Pocket Margin% 10.00% $4,600 Quarterly
Team Solutions 10.00% $4,600 Quarterly as Earned
Total 100.00% $46,000
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Director of Sales - GlobalDirector of Sales - Global
• Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component.
• Team Pocket Margin % and Team Solutions will be paid regardless of individual performance.
Component WeightTarget
Incentive $ Paid
Sales 40.00% $20,800 Quarterly YTD
Pocket Margin% ** 40.00% $20,800 Quarterly YTD
Team Pocket Margin% 10.00% $5,200 Quarterly
Team Solutions 10.00% $5,200 Quarterly as Earned
Total 100.00% $52,000
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Solutions Development Manager – SDMSolutions Development Manager – SDM(Furniture, DPS, Tech Depot, HP Liaison)(Furniture, DPS, Tech Depot, HP Liaison)
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• IMU$ for Tech Depot instead of IMU%
Component WeightTarget
Incentive $ Paid
Sales 60.00% $18,000 Quarterly YTD
IMU% 40.00% $12,000 Quarterly YTD
Total 100.00% $30,000
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National Account Manager – DPS - NAMNational Account Manager – DPS - NAM
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
Component WeightTarget
Incentive $ Paid
Sales 60.00% $25,200 Quarterly YTD
IMU% 40.00% $16,800 Quarterly YTD
Total 100.00% $42,000
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Regional Sales Manager – RSM – Furn – DPS - TDRegional Sales Manager – RSM – Furn – DPS - TD
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
Component WeightTarget
Incentive $ Paid
Sales 45.00% $20,700 Quarterly YTD
IMU% 40.00% $18,400 Quarterly YTD
Team Sales 15.00% $6,900 Quarterly YTD
Total 100.00% $46,000
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Director of Sales – Promo-Global-DPSDirector of Sales – Promo-Global-DPS
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
Component WeightTarget
Incentive $ Paid
Sales 60.00% $31,200 Quarterly YTD
IMU% 40.00% $20,800 Quarterly YTD
Total 100.00% $52,000
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Director of Sales - DPSDirector of Sales - DPS
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
Component WeightTarget
Incentive $ Paid
Sales 60.00% $31,200 Quarterly YTD
IMU% 40.00% $20,800 Quarterly YTD
Total 100.00% $52,000
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Furniture TAMFurniture TAM
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• Goal based on assigned RSDs
Component WeightTarget
Incentive $ Paid
Sales 50.00% $3,750 Quarterly YTD
IMU% 50.00% $3,750 Quarterly YTD
Total 100.00% $7,500
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Furniture TAM ManagerFurniture TAM Manager
• Both Sales and IMU% YTD attainment must be at least 90% to earn either component.
• Goal based on assigned RSDs
Component WeightTarget
Incentive $ Paid
Sales 50.00% $7,500 Quarterly YTD
IMU% 50.00% $7,500 Quarterly YTD
Total 100.00% $15,000
2009 BSD Regional Sales Conference
2009 Business Guidelines
Confidential
2009 Goaling Targets- Preliminary
Position (partial listing) ’09 Year-over-Year Growth Expectation
TAM (applies to DSMs) -6%
Territory Development Mgr. 0% on base, $160K New Business
Vertical Market Manager 4% growth on base, inclusive of New Business
Major Accounts Manager 2%
Major Accounts BDM $1.6 MM in new business
Global Accounts Mgr. 4%
Global BDM $2.5MM in new business
Position (partial listing) ’09 Year-over-Year Growth Expectation
TAM (applies to DSMs) -6%
Territory Development Mgr. 0% on base, $160K New Business
Vertical Market Manager 4% growth on base, inclusive of New Business
Major Accounts Manager 2%
Major Accounts BDM $1.6 MM in new business
Global Accounts Mgr. 4%
Global BDM $2.5MM in new business
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Goal Adjustments - Revenue
Revenue Adjustment and Calculations ( Beginning of Year and Mid-Year Adjustment requests will be reviewed and approved by SCRB)
A single account, group of parented accounts, regional, national affiliates, lost national accounts, one time orders, or projects must be equal to or greater than 5% of proposed territory base goal.
– Example: $2,000,000*.05=$100,000100% relief to the Rep and DSM
IMU Adjustment and Calculations (Beginning of Year and Mid-Year Adjustment requests will be reviewed and approved by SCRB)
A single account, group of parented accounts, regional, national affiliates, or lost national accounts must be equal to or greater than 5% of proposed territory base goal and the IMU run rate is lower than the IMU goal by at least 300 basis points
– Example: $2,000,000*.05=$100,000 & IMU Goal is 30.00%/IMU Actual is 22.00%2008 Conversion to US Communities goal recalculated and adjusted based on Sept, Oct, and Nov 2008 run rate when it is lower than the IMU goal by at least 150 basis points. There is no revenue threshold for this adjustment.
2008 Contract Renegotiations impacting the IMU by more than 300 basis pointsThe IMU Trend will be evaluated (minimum of prior 3 months). The goal adjustment will be calculated to bring the IMU attainment at the account level to 95%.
Revenue Adjustment and Calculations ( Beginning of Year and Mid-Year Adjustment requests will be reviewed and approved by SCRB)
A single account, group of parented accounts, regional, national affiliates, lost national accounts, one time orders, or projects must be equal to or greater than 5% of proposed territory base goal.
– Example: $2,000,000*.05=$100,000100% relief to the Rep and DSM
IMU Adjustment and Calculations (Beginning of Year and Mid-Year Adjustment requests will be reviewed and approved by SCRB)
A single account, group of parented accounts, regional, national affiliates, or lost national accounts must be equal to or greater than 5% of proposed territory base goal and the IMU run rate is lower than the IMU goal by at least 300 basis points
– Example: $2,000,000*.05=$100,000 & IMU Goal is 30.00%/IMU Actual is 22.00%2008 Conversion to US Communities goal recalculated and adjusted based on Sept, Oct, and Nov 2008 run rate when it is lower than the IMU goal by at least 150 basis points. There is no revenue threshold for this adjustment.
2008 Contract Renegotiations impacting the IMU by more than 300 basis pointsThe IMU Trend will be evaluated (minimum of prior 3 months). The goal adjustment will be calculated to bring the IMU attainment at the account level to 95%.
Confidential
Goal Adjustments
New Hires Establish base goal on the most recent 12 month sales history. Apply beginning of year TOPS Goaling Guidelines. Any adjustments within the
guidelines will not roll to the DSM. No guarantees unless in writing with prior approval by RVP. Bonus eligible first day of fiscal month following 2 full fiscal months of employmentWindfalls
Criteria: Revenue$ & IMU$ Trade for customers, one-time orders, or projects with
actual revenue exceeding 5% of goal. Adjustment:
Adjustment applied to rep and DSM. Adjust the customer, project, or one-time revenue based on actual IMU%
attainment. Requires SVP and RVP approval
Windfall Example Sales IMU% IMU$Actuals 2,000,000$ 28.00% 560,000$ Order 100,000$ 10.00% 10,000$ Adj Order 35,714$ 28.00% 10,000$ Rev Attainment 2,035,714$ 28.00% 570,000$
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