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Quotas and Compensation

A quota is the target amount or number of sales the salesperson is expected to achieve. Quotas are often tied to the expected performance within the salesperson's territory.

Two methods are used to create quotas using Siebel Incentive Compensation:

• The compensation administrator creates the quota. As a compensation administrator, you create the quotas, associate the quotas with compensation plans and targets, and personalize the quotas by participant. There is no interaction between the creator of the quota and the representative who receives the quota target.
• The compensation administrator uses Siebel's Quota-Setting tool. Using the Quota- Setting Tool, you can involve sales representatives and sales management in the quota-setting process. Quotas can be developed at the executive levels of a sales hierarchy, and then rolled down through the next-level reports within the organization. As a compensation administrator, you create quotas, quota factors, and seasonality skews and associate the quota with a compensation plan, plan rule, and manager. Sales managers can review and adjust quota targets, roll them down to next-level reports, and roll up modified targets in the sales hierarchy. Sales representatives can review and accept or reject the quota targets assigned to them.

The Quota-Setting Tool

The quota-setting tool uses sales hierarchies and territories to roll down quota targets from top executive levels to lower levels in the hierarchy and then to roll up modified targets from the sales managers to higher executive levels.

As quotas are being developed for the sales personnel, the sales manager can use the quota-setting tool to apply adjustments and quota factors to the target number.

The application of quota factors allows the manager to vary the quota target for each representative based on territory, account responsibility, market conditions, competitive landscape, and so on. Figure 5 shows how the quota-setting feature fits within Siebel Incentive Compensation.

After the final quota is determined, the quota can then be spread over many time periods with further adjustments accounting for seasonal fluctuations and period trends in sales.

Figure 5.  Siebel Incentive Compensation Quota-Setting Tool

The quota target can be rolled down through multiple levels in the hierarchy, factored and spread each time, and then rolled back up through the same multilevel hierarchy. As managers make adjustments to the quota targets during the year, you review the changes and revise the compensation plans with these targets.

Figure 6 illustrates the incentive compensation quota-setting process.

Figure 6.  Siebel Incentive Compensation Quota-Setting Process