Business Intelligence Blog from arcplan

Sales Commission Reporting Costing You a Fortune?


We have a Fortune 500 client whose CFO is responsible for calculating and reporting on all executive compensation because it’s confidential information that only a limited number of people can see. So they had a highly skilled, highly valuable executive doing manual reports in Excel. Another client – a global company with thousands of direct sales reps – had a team of 8 FTEs dedicated to calculating sales compensation payments. So I ask you to consider this question: how much are your sales commission and incentive plans really costing your company?

There is a better way to manage incentive plans – Business Intelligence! If you’re already a BI user, you should have access to:

  • A rules-based environment that replaces Excel spreadsheets and improves accuracy and consistency of commission or incentive payments
  • A reporting engine that enables teams to look at data any way that is needed: by sales person, period, region, product, customer, etc.
  • The ability to tap into multiple data sources and perform what-if scenarios

(Leave me a comment if your BI system isn’t this advanced and you’d like more information about how arcplan can help.)

In the end, your BI system can reduce error rates (overpayments), save you time, and get you real-time visibility into compensation. Take some time to figure out if your organization has a system in place that can improve your sales commission processes or if investing in this area would be wise!