Spectrum announces SAP Silver Partner Status to further deliver advanced Sales Performance Management Solutions to its Customers

Spectrum announces SAP Silver Partner Status to further deliver advanced Sales Performance Management Solutions to its Customers

News & Events

San Jose, California — August 14, 2019 —Spectrum, a global leader in Corporate and Sales Performance Management Services, announced today that it has officially achieved silver-level Partner status with SAP to further deliver highly advanced Sales Performance Management (SPM) solutions to its customers. The new Silver Partner status is set to add to Spectrum’s already robust SPM service offerings, one that brings with it decades of experience in implementing innovative SPM solutions.

Through the SAP PartnerEdge program, Spectrum will now have access to a much broader range of software tools and solutions for its clients under the Sales Cloud umbrella—enabling leading-edge enhancements for sales reps’ day-to-day work, while improving customer experience and accelerating the buying process. This includes the ability to create a complete view of every customer and every opportunity with automatic monitoring of customer activity, real-time predictive analytics, an improved sales strategy with prescribed content recommendations, and much more.

“We are incredibly happy with our new SAP Silver Partner status,” commented Maneesh Gupta, Spectrum’s Managing Partner. “With our deep and long-standing expertise in SAPCommissions solution—an expertise that predates their acquisition of the CallidusCloud tool by 10+ years—we feel that SAP’s newly acquired commissions solution elevates our ability to provide invaluable service to our current and future customers.”

Spectrum completed a myriad of formal certifications required to obtain the SAP Silver Partner status, along with demonstrating its ability to successfully implement SAP solutions. Now, in addition to the SAP Silver Partner status that provides Spectrum with access to the latest SAP Sales Cloud solution, it will also help build and maintain successful client relationships by maximizing business results.

As a renowned leader in the space, Spectrum will now also be able to better support its customers’ digital transformation goals—aligning all aspects of SPM across multiple corporate divisions while leveraging its clients’ own customer expectations within the new digital economy.

As it relates to digital transformation, the need for an advanced business process is ever-present, especially when it comes to effective SPM. The complexity of such endeavors requires a specialized skillset to ensure it is done right. Spectrum’s highly skilled SPM Services group is 100% dedicated to SPM, ensuring all aspects of process implementation are addressed, and that specific needs and business goals are met.

Spectrum continues to offer services to the world’s top companies to address diverse challenges such as creating environments that enable better sales forecasting, ensuring fewer commission disputes, delivering more accurate payments, providing full compliance, and increasing security functionality—ensuring that goals and objectives are met both from the individual level and from the corporate level.

For more information regarding the partnership, or Spectrum’s full suite of services, visit www.SpectrumTek.com.

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Do Incentives Really Incentivize the Right Behaviors?

Corporate greed: is it driven by shareholder value, e.g. earnings per share, stock price, dividends in a public company, equity valuation in preparation for an IPO or selloff in a private company? Perhaps all of the above. Do senior executives, including sales leaders unknowingly contribute to this greed or is there a willful disregard of laws and regulations in pursuit of higher personal earnings & reward, i.e. incentives?

A case in point is Wells Fargo Bank and its Community Banking Division. Last week, the Consumer Financial Protection Bureau, working with the Office of the Comptroller of the Currency and the city of Los Angeles imposed a $185 million fine on Wells Fargo for defrauding customers in order to generate more revenue.

Much of that fraud took place in the retail banking and credit card units of the community banking division. According to Wells Fargo, over 5,300 employees were fired in the past 5 years for the unauthorized opening of accounts. These accounts were fraudulently opened in customer names in order to hit unrealistic sales goals. Astonishingly, it would appear that Wells Fargo was aware of this practice for five years, but did nothing to willfully stop it.

So what will be the fallout of this debacle? Loss of confidence in the consumer banking industry and likely, a new wave of regulations from DC. Whether or not future regulatory stipulations are enacted, SPM vendors should take note.

Would a Sales Performance Management tool have further enabled this activity or could SPM have prevented it? Regardless of the technology used or not used, it comes down to the people in charge who allowed this gaming of the system to occur.

Many questions still remain:

  • Where were the checks and balances in terms of variable pay to assignment allocations for the sellers and their managers?
  • How were the performance bonuses for sales management measured and who oversaw this?
  • Why weren’t alarm bells going off and red flags raised over the fact that 5,300 people were terminated over a 5-year period? No one thought to ask why?
  • How was the leadership team able to game the system?

Can SPM tools, with all their analytic capabilities, advanced workflow and communication features, be a solution to help prevent this from happening again? Or, is it just a sad reality that no matter what technology exists, simple human greed and despicable executive behavior will always triumph over the best of code and firewalls.

The Economic Truth About SPM

Recently, I posted a blog looking back at the evolution of SPM, from the automation of sales commission calculations through today’s sophisticated sales performance management solutions. The evolution began with a tactical efficiency improvement tool and advanced to a strategic planning and sales force efficacy platform with applications that can enable, manage, analyze and plan in support of forecasting to corporate objectives.

So what does all this amount to? For one, spending 6 figures or more to implement a SPM solution is not a trivial matter. There is relative parity among the software vendors when it comes to software licensing fees in competitive evaluations, assuming of course that it’s an “oranges to oranges” comparison. Which is another reason why it’s critical to understand your requirements and align them to must-have functional attributes. On the other hand, the cost of implementing the software, along with associated support services is another story, and can vary greatly.

Over the last 15 years I have seen implementation estimates for the same project vary by 6 figures between vendors and sometimes between the vendor and its partners. One example is a project where the services estimate exceeded $450,000 across 2-3 vendor solutions for less than 500 payees. With a cost and variance like this, if I were responsible for the budget, I would kill it, and that is precisely what happened. Uncertainty amplifies risk and risk without mitigating factors, become nullified decisions.

Assuming the software will be delivered as a service via the Cloud in a subscription model, most organizations will itemize the software as an operational expense or OPEX, as most in this business are aware. Implementation services are typically capitalized, meaning a capital expense or Capex. Capex budgets are a battle for line item allocation and this is where a lot of SPM projects can be delayed or canceled. Renting software is one thing; implementing SPM software with 6 figure price tags, or more, plus paying for ongoing support, can require political stewardship and EMOTIONAL buy-in, high up.

Where’s The Beef?

When the evaluation of SPM software fails to deliver a predetermined value quotient, e.g., emotional buy-in, the project is prone to losing funding or getting bumped in favor of another project. One of the larger detractors with SPM is the lack of perceived value, which is overshadowed by the risk assumed by senior leadership. Financial models, hurdle rates, total economic impact, ROI and so on, become less of a factor if the software cannot provide ample evidence that it can help executive leadership capitalize and execute on corporate strategy. SPM is not viewed as a critical path at the ‘C’ suite level because the trajectory of the strategic outcome can be perceived as falling short of the goal line.

SPM software demonstrations, proof of concepts or workshops are not delivered with this these things in mind. Most vendors focus on either the tactical gains or just the performance improvements for sales operations and compensation teams. They fall short on demonstrating the overall impact to sustainability, growth and the financial benefits to the company as a whole. RFP’s can also do an organization more harm than good because many times they fail to synthesize the collective business benefits and outcomes of implementing a SPM solution. Rather, RFP’s can focus too heavily on the technical and functional attributes that are aligned with efficiency gains and short range performance improvements.

At a recent SPM conference, it was mentioned by a top tier analyst firm, that out of an estimated 250 SPM related vendor evaluations in 2015, 75% ended in a no-decision. That equates to a mere 63 projects out of 250 that made it to the vendor selection stage. The point being, a no-decision is usually linked directly to risk and the lack of value perceived by senior decision makers, the economic buyer being a key member of that team, among others. In addition, of these 250 evaluations, over 100 were RFP driven.

One Possible Financial Option to Help Mitigate Risk

A unique concept being offered by at least one SPM vendor is bundling the software licensing fees in a standard subscription model (SaaS) and the implementation services as a single monthly payment. For the first 12 months, customers can pay off or pay down implementation costs together with their software subscription fees. After 12 months, the customer will have either paid off the services or would carry a balance to be paid under extended terms.

An approach like this does a couple of things. First, it commits the vendor to perform against all SLA’s and manage the implementation to as close to perfection as possible since their implementation fees are at risk over an extended period of time. Second, it mitigates risk for the customer, allowing a predetermined expense to be amortized, thus having predictable costs associated with each phase of the project against a capital budget.

I think this is a model that has the potential of catching on. Perhaps the reseller channel should take note, provided they are financially sound, since most are private companies and not pressured by Wall Street and the SEC. It would also allow the partner to deepen their relationship with customers, leveraging experience working with customer data, opening future opportunities to provide ongoing support, managed services and more.

The cost of implementations is not going down. While some vendors tout rapid implementation times and a faster time to value, the reality is, more time will be required to achieve a full, go-live production environment.  This includes administrative and end-user training, parallel testing and fixing initial bugs uncovered as a result of early software testing, both in the software itself and in workflow and design. In fact, like many other software implementations at the enterprise level and even some smaller, SPM implementations never really end, it’s just the beginning.

About the Author: For more than 15 years, Tom Troiano has been a successful senior sales executive with the leading Sales Performance Management vendors including IBM / Varicent, Synygy (Now Optymyze), Callidus Cloud and Oracle. Throughout these years he has helped 100’s of companies across many industries evolve from spreadsheets and homegrown tools to today’s data driven SPM solutions supported by a strong business case. Tom has been in sales and sales management his entire career. Starting in 1980, where he led a sales team at a small startup that grew into a big sales team while designing his first sales compensation tools.

The Evolution of Sales Performance Management

Sales Performance Management, A Look Back

Back when I started my professional selling career over 35 years ago, the term sales performance management meant sitting though weekly sales meetings and performance reviews every 3 months. Sales performance management in those days had little to do with analyzing productivity, team performance, sales enablement or incentive compensation, except, if you weren’t performing, i.e. hitting your numbers, sales management took the keys to the company car in return for your last check.

24 Carat Gold Calculators

From the early to mid-90’s, sales compensation management software started to hit the market. There wasn’t much science or empirical data to drive business outcomes based on historical or regression analysis, just a more streamlined and efficient calculator of sales commissions. This software was sometimes referred to as a ‘24 carat calculator’ because of its overall cost relative to its utility. A lot of IT organizations began building rudimentary commission calculators and reporting tools more cheaply. In fact, my team worked with our IT folks at Textron Systems to build such a proprietary system in 1990 using Lotus Symphony (before IBM) on Unix / Sun Solaris.

From SCM to EIM to ICM and Now SPM…

Over the next decade or so, sales compensation management (SCM) as it became known, morphed into EIM or enterprise incentive management as finance looked to increase its focus, and control, over incentive spend relative to performance. Then, by the early to mid-2000’s, incentive compensation management (ICM) became a more common definition as incentive compensation management moved across lines of business to now include other forms of incentives, both cash and non-cash for sales and non-sales staff with varying degrees of reporting and workflow.

As the new millennium was nearing the end of its first decade, sales performance management (SPM) became the defining terminology. With advanced reporting and analytics, territory and quota planning, improved workflow and flexible user interfaces, SPM software was now the quintessential tool designed to align sales performance with company goals. Sales operations suddenly had a new face, with new responsibilities and for some, a seat at the table.

From a technology perspective, the adoption of the Cloud (SaaS) and advanced integration technologies made the economics more attractive. The newer generations of SPM software became technically superior over just a couple of years prior. For better or worse, functionality also became quite similar across vendor offerings making vendor selection even more challenging, at least visually.

SPM Software, The Devil’s in The Details and The Requirements

Today, there are nearly 30 software vendors, including the leading ERP vendors, that perform many of the common SPM functional attributes. Out of these 30 software vendors, fewer than 10 are considered to be best of breed SPM software vendors. Of these best of breed vendors, most can satisfy at least 70% to 80% of the typical functional requirements found in technically challenging RFP’s. However, any one vendor can fall short on reporting, analytics, workflow, territory & quota planning, data volumes, managing overly complex compensation plans – the list goes on.

This is why it is imperative for stakeholders to take ownership of defining, gathering and documenting requirements for their particular line of business. The most successful implementations of a SPM solution occur when line of business owners are directly involved from the onset, executive sponsorship is established and realistic project goals are set. SPM projects are like ERP projects in some ways; there are a lot of fingerprints touching various segments effecting a lot of people, the way they work and the financial impact to the company. SPM is not a compartmentalized nor a departmentalized tool.

Human Capital Management Software

Human Capital Management (HCM), Human Resource Information Systems (HRIS) and Human Resource Management Systems (HRMS) also have variable compensation management capabilities. A few have rudimentary sales incentive compensation management functionality but none can manage the volumes of transactional sales data, perform complex sales crediting, perform simulated scenario modeling of plans, territories and quotas then analyze this data for outcomes against a prescribed forecast. That is a fundamental difference between HR tools and SPM, currently.

Many SPM tools can also calculate bonuses, assign and measure MBO’s while enabling scorecard functionality, a core function for HR tools. But, they cannot perform many of the core workforce management functions such as salary administration, equity or stock distribution, deferred compensation and merit pay, together known as total compensation or total rewards. In addition, HCM tools provide a unified view across all employees that can analyze role-based performance, measure skill levels and prescribe best-fit candidates for a particular job and provide a holistic view of the total workforce.

If a top tier HCM or HRMS vendor were to acquire a top tier SPM vendor, or, the other way, around, then integrating the two successfully, while offering either as a stand-alone solution or together as one, that would be a market moving game changer. I’m surprised that hasn’t happened up to this point given the speculation and rumors that have circulated throughout the industry for years. I think further consolidation of the SPM market is inevitable, which can be a good thing.

About the Author: For more than 15 years, Tom Troiano has been a successful senior sales executive with the leading Sales Performance Management vendors including IBM / Varicent, Synygy (Now Optymyze), Callidus Cloud and Oracle. Throughout these years he has helped 100’s of companies across many industries evolve from spreadsheets and homegrown tools to today’s data driven SPM solutions supported by a strong business case. Tom has been in sales and sales management his entire career. Starting in 1980, where he led a sales team at a small startup that grew into a big sales team while designing his first sales compensation tools.