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About Territory Hierarchies and Divisions

Figure 2 shows an example of a hierarchy made up of two sales forces (or in Siebel terminology, divisions).

Depending on your business needs, you may choose to have one division in your territory hierarchy or multiple divisions in the territory hierarchy. For large hierarchies, it may be better to set up several divisions. This option gives you more flexibility when running territory alignments. With multiple divisions, you can run an alignment for a whole territory hierarchy or for just one division at a time within a territory hierarchy. Figure 2 shows a territory hierarchy made up of two divisions.

Figure 2. Schematic Example of a Territory Hierarchy Made Up of Two Divisions

Position Reporting Structure and Territory Hierarchy

Usually, but not necessarily, the position reporting structure in the division matches the territory hierarchy. That is, primary employees who are assigned to child territories usually report to the manager who is the primary for the parent territory. For example, referring to Figure 2, if territory 6 is the child of territory 3, the sales representative assigned to territory 6 reports to the sales manager who is assigned to territory 3.

However, this need not be the case. For example, the sales representative for territory 8 leaves the company. You assign territory 8 to the sales representative for territory 10. This sales representative now has two territories and continues to report to the sales manager for territory 4 (not the sales manager for territory 3).

There is a feature in Territory Management that you can use to automatically reassign the reporting structure so that it parallels your territory hierarchy. The reporting structure can be updated territory-by-territory or for a whole hierarchy at time.