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Business Scenarios for Sales Hierarchies

These scenarios provide examples of sales hierarchy processes performed by a compensation plan administrator and a sales manager. Your company may follow a different process flow according to its business requirements.

Compensation Administrator

At the end of the fiscal year, Catherine Andrews, the Compensation Administrator at Network Technologies, updates the company's organization hierarchies, quotas, territory, and credit assignment rules using Siebel Incentive Compensation. She also needs to define a new sales hierarchy for North America.

Andrews creates a new sales hierarchy, beginning with a root territory. She navigates to the Sales Hierarchy explorer view and creates a new territory record for North America, and then adds child territories until the structure of the entire hierarchy is completed.

Andrews adds positions to the territory, each position with its own set of effective dates. She selects Nathan Sachs, the senior vice president of North American sales, from a list of available positions. She also indicates that Sachs is the territory owner so that he can later define node attributes and also delegate access to others. Andrews knows that Sach's administrative assistant will need access, so she adds Mary Allen as a delegated position. Allen will have access and visibility to each node below North America. In addition, Andrews sets the assignable flag to true for Sachs because Sachs will be added to the assignment rules for the territory. Allen, on the other hand, will not be assigned.

Andrews defines the territory assignment rules for the North America territory, and chooses Sachs as one of the positions for the rule so that he will automatically be assigned transactions that meet the criteria. As part of the process, Andrews defines a sales credit percentage for Sachs and assigns effective dates to the rule so that the rules can change over time.

Next, Andrews references the North America organization node with the North America territory. By using a reference to the territory, she will have an easier time maintaining the organization hierarchies over time.

Finally, Andrews defines the high-level quota for Sachs, because he is at the top of the hierarchy as the node owner.

Sales Manager

Network Technologies uses a distributed process in which sales managers play a large role in defining the organization hierarchies.

Nathan Sachs logs in to Siebel Incentive Compensation and navigates to his personal organization hierarchy explorer view where he can review his sales hierarchy and the nodes below it. He notices that there are two territory nodes below his territory. As a territory owner, Sachs can define attributes on the child territories. Sachs defines new territories for his subordinates and assigns the positions of the Eastern Region vice president and Western Region vice president as territory owners. Sachs assigns the territory rules and sales credit percentages. To make his job easier, he copies his territory rules to the territories below. Then, he adds rules to additionally define the territories.

Mary Allen, Sach's administrative assistant, logs into Siebel Incentive Compensation and navigates to her delegated organization hierarchy explorer view. She reviews the information in the hierarchy and notices that an assignment rule added by Sachs is missing some criteria. Allen updates the rule with the new criteria.

Later, the Eastern Region vice president and Western Region vice president log in to Siebel Incentive Compensation and follow the same process to define their subordinate territories. Their subordinates log in to the Siebel application and do the same. This process continues until the entire sales hierarchy has been defined, including the crediting rules and quotas.

Later, the crediting rules, quotas, and territories are approved, and the hierarchy becomes active.