White Paper

10 ways to measure the success of SPM implementation

According to a recent survey undertaken by the team at PM Solutions just 47% of the projects undertaken in the enterprise world are considered successful. Concerns about poor ROI or high failure rate of IT projects have been around since the mainframe days, so nothing new. However, when you think of the same metrics for SPM, there is a fundamental question: How do you measure the success of an SPM project? The conventional way is to compare the plan against the actual timelines and budget. If the project is delivered on time and within budget, it is a success, otherwise it is not. This approach measures the efficiency of planning and budgeting exercises in the organization, but totally ignores the real value the project adds. A project may get completed on time and within budget, but still fail to deliver the value it promised to the business. The best way to measure project success is to conduct an ROI calculation, but this is easier said than done.

Measuring the success of SPM solutions is complex because they deliver much more than financial savings. Companies rarely implement an SPM solution with the primary goal of saving the cost of compensation administration. The foundational goals of SPM solutions are to assure accurate on-time commission payments and provide accurate statements with minimal administrative effort. With the foundation established, the next set of goals align the commission plans with corporate strategy, improve the Sales Team’s motivation, provide business intelligence, minimize legal liabilities, and maximize scalability with flexibility. To measure the success of an SPM implementation, you must account for all these factors.

Below are ten critical areas that will help you measure the success of your SPM implementation.

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