Siebel Incentive Compensation Administration Guide > Sales Hierarchies >

Managing Sales Hierarchies and Territories

Many organizations use complex sales hierarchies, which include individual hierarchies for Direct Sales, Channel Sales, Sales Engineers, Product Sales and Vertical Sales hierarchies. These companies have developed matrix coverage or territory models in which a number of individuals as well as sales hierarchies receive credit for a single sale. Using Siebel Incentive Compensation, organizations can administer positions and sales hierarchies, quotas and territories.

Siebel Incentive Compensation can help ease the approval process and distributed approval process, allowing sales managers to better manage territories and quotas.

Sales Hierarchies

A sales hierarchy is a management structure that captures the sales reporting relationship of a business model (direct, overlay, channel, etc.) for a specific time period. A hierarchy can be set up to support various sales models such as direct sales, channel, and global service.

A sales hierarchy can contain one or more sales hierarchy versions, and can have an effective date range and a status of In Progress, Submitted, or Approved.

Territories

A sales territory is a boundary that is defined using order (or transaction) attributes, that may include geographical, vertical, account and product information, and a specific time period. A territory name is unique within a hierarchy, and the territory can be referenced only one time in the same sales hierarchy version. However, the territory can be referenced multiple times in hierarchy versions that belong to the same sales hierarchy.

A territory is defined by positions and crediting rules. A position represents the person assigned to the territory and the crediting rules determine which sales people receive sales credit for a transaction.

Validation

You should validate the Sales Hierarchy Version, Territory, Territory Position and Crediting Rule before they are submitted for approval to prevent error conditions and make sure the objects have been properly created.

Approval Process

Compensation administrators, territory administrators, and sales managers can create, modify, and formally approve sales hierarchy versions and territories, depending on varying degrees of responsibility.

Approving a Territory

After you have defined the territory, you can submit the new territory to your manager for approval. After a territory is approved, the positions and crediting rules associated with the territory are also approved. The positions and crediting rules can also be individually approved. The newly created territory becomes active after it is approved.

Approving a Sales Hierarchy Version

Before you can submit a sales hierarchy version for approval, the territories referenced in the hierarchy version must be active (approved).