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Business Scenario for Quotas

This scenario provides an example of a process flow performed by the compensation administrator, sales manager, and sales representative. Your company may follow a different process flow according to its business requirements.

Catherine Andrews, the compensation administrator for Network Ltd., is using Siebel Incentive Compensation's quota-setting tool to create and track quota targets for the entire sales force. She receives the default quota target from executive management for one sales division, consisting of a senior manager and 15 sales representatives. Andrews creates the quota, creates quota factors, associates the quota with a compensation plan and plan rule, and creates a seasonality skew to account for traditionally slow sales in the first quarter of the year.

Using the Sales Hierarchy Explorer, Andrews then associates the quota with Jennifer Collins, the senior manager of the division.

Collins reviews the quota and quota target and adds the next-level reports who need to meet this quota. However, the default quota is not adequate for three of the sales representatives, so she adjusts the quota amount for each of them to reflect their sales prowess, territory, and so on. She then rolls down the adjusted quotas.

The sales representatives review and accept the adjusted quotas. Collins then rolls the adjusted quotas back up to executive management. After the quotas have been approved, Andrews imports them into the compensation plan and they are implemented. Midway through the second period, Collins reviews the progress of her next-level reports in meeting the quotas that were set, and realizes that economic conditions will make it difficult for several of the representatives to meet their quotas. She revises the quotas to reflect the current economic slowdown.

Siebel Incentive Compensation Administration Guide