From Strategy to Service
How a global product company achieved SPM ultimate success with the help of a bowtie
Royal DSM is a global, purpose-led, science-based company employing 23,000 people worldwide specializing in solutions for Nutrition, Health & Sustainable Living.
Want to hear from the client? Watch the on-demand recording.
Challenge:
For 3 years, DSM was using a well-established solution to deliver their various variable pay and sales compensation programs across their wide-ranging customer and business sales teams. DSMâs legacy SPM Solution provider (Optymyze) advised them that there would be no renewal available, and they would have a very limited amount of time before their contract would end and they would be without a solution. This presented significant risk to the DSM Comp Team as their annual calculation processes could not be completed and would require significant human intervention to manually complete and ensure their salesforce was paid their most important paycheck of the year.
In addition, not having a solution also meant that other key processes including annual goal setting or monthly performance calculations could not be completed, resulting in process inefficiencies and errors, as well as being poorly received by the salesforce – a major source of dissatisfaction and potentially would impact company revenue.
Following a chance meeting, OpenSymmetry explained how they have helped guide other companies through similar challenges. OpenSymmetry introduced DSM to their bowtie process and explained how it is a proven methodology that would offer DSM the opportunity to overcome current adversity and deliver a solution that would not only replace their legacy solution, but would also provide a solid foundation where it could be easily expanded across the wider company.
DSM Comp Team saw the immediate benefits that the OpenSymmetry bowtie would bring to their current situation, as it allowed DSM business stakeholders to consider if the multitude of existing tools delivering sales performance analytics (already owned by DSM) could be leveraged. Using already established programs would allow the DSM team to save on the potential expense of yet another vendor. Intrigued to put the bowtie to the test, DSM sought guidance from OpenSymmetry regarding how they would address the current situation and manage business stakeholder perception.
Assess Opportunities:
To help ensure that DSM would undertake a thorough strategic approach, OpenSymmetry met with the DSM team to complete an assessment of their current program and application ecosystem. By leveraging their expertise, they were able to callout the major considerations associated with determining if DSM could utilize a home-grown solution to replace their legacy SPM solution.
Mischa Bijl, Total Reward Manager for DSM, explains, âOpenSymmetry helped us perform a full âbuild vs buyâ analysis including key considerations and common risks when considering in-house solutions vs purchasing an SPM solution from the market, which, when followed, it soon became apparent that implementation of external technology provided a better functional fit and future proofing.â
Plan & Prepare:
With DSM stakeholders now aligned that a new SPM solution would be needed, the DSM Comp Team felt overwhelmed regarding the next step and how they should approach it – especially with their fast-approaching deadline looming.
Once again, through the adopting of the bowtie approach, OpenSymmetry explained that rather than jumping into solution selection mode, DSM would be best served if they undertook an effort to identify what was most critical, when challenges needed to be addressed by, and what use cases each challenge impacted. This would lay the foundation for DSM to know what the chosen solution would need to address the immediate challenges.
Very quickly, by following the bowtie approach, DSM was able to start breaking their challenges down and start establishing what their critical path looked like, as well as what use cases each challenge would need to address.
When assessment and planning efforts are conducted through a thoughtful and holistic, companies can clearly define:
⢠The as-is process and where urgent tasks could be deferred based on their importance
⢠Use cases â what they will consume and produce, and offers insight into input/outputs
⢠Breaking down the impossible into digestible blocks to make conversations more proactive
⢠A well-defined plan inclusive of critical path and major challenges
⢠Where there are gaps in their current process
⢠How users will interface and use their new strategic tool
⢠Areas of opportunity where work could be completed outside of the technology to expedite and streamline the overall solution deployment and implementation
Solution Selection:
With a critical path in place, plus knowing key dates and when major challenges needed to be addressed by, DSM requested OpenSymmetry guide them through a vendor selection process. They sought to be reassured that they would be investing in the solution most appropriate to their needs.
Through completion of workshops to understand what the chosen solution must do, OpenSymmetry helped DSM identify use cases related to immediate challenges and consider how they would interface with the solution in the future. OpenSymmetry explained how considering future state goals was key to maximizing any investment and that by only focusing on their current challenges would significantly limit this.
By execution of solution demos focused on current and future state use cases, differentiation was now created between the solution providers. Once this was collated afterwards by OpenSymmetry, and it was now known how well suited each solution was, DSM saw that Varicent exhibited capabilities that were critical to their SPM program and as a result, they selected Varicent as their chosen SPM provider.
Bijl further explained, âOpenSymmetry offered us a structured approach and management support for vendor selection by understanding what we needed, what was out there in the market, and what solution would fit our purpose best. We are a P&O Function and we have little expertise in Sales Performance Management technology, other than our knowledge of our current solution. OpenSymmetry understood the ins and outs of a Sales Comp Program and our requirements and wishes, so they could help us challenge the different technologies, but also our own considerations in this process.â
Configure & Deploy:
Once the agreed plan was in place and a vendor was selected, DSM was able to successfully launch their SPM solution deployment. By initially identifying what was most crucial, the annual processes that could not be completed in the legacy solution was now automated in the new solution. Concerns around manual intervention and salesforce disengagement were no more.
With their major challenges now addressed, the legacy system could be truly replaced with additional deployment phases around goal setting and monthly performance completed in the new solution. Each one further decreasing the risks imposed by what resulted in a 13-week deadline to transition off the legacy system.
Key considerations regarding the deployment of the Varicent solution include:
1 | Define a Min Viable Product (MVP)
Given that tight timelines involved with this migration off the legacy system, the team had to define what would be needed to meet DSMâs minimum SPM/ICM requirements in the shortest amount of time. To complete this effort the team leveraged workshops to take a hard look at what was going to be critical to paying the salesforce while also ensuring the overall design of the system accommodated future changes and growth.
2 | Migration from Optymyze
The legacy system had been in place for some time, and it was important to understand the impact of migrating the sales organization from this old system to the new one. Certain efforts were made to adopt reports and workflows that had been working to ensure minimal disruption while taking advantage of newer, more functional, capabilities.
3 | Requirements/Use Cases
Leveraging the legacy system set up/documentation and assessment workshop efforts, DSM checked all the boxes by developing/reviewing the variety of use cases to add more business logic into the new solution, which reduced the level of exposure associated with moving from the previous SPM solution to their new SPM solution.
Program Adoption:
With their core SPM solution now in place, DSM could fully focus on delivering successful end user adoption. Again, by adopting the bowtie approach, OpenSymmetry guided DSM through workshops that focused on determining what the main drivers and risks were, and once conducted, helped DSM to conclude that to effect positive change with least impact, they needed to keep things as familiar as possible. This meant keeping salesforce end user experience as similar as possible.
Bijl explains, âIt was quite stressful because we had to tell our business leaders that we were decommissioning the current tool on December 12th, just before you start closing the year. And the general experience with implementing a tool is that it takes up to a year, or months, to get up-and-running.â
Process & Tech Support:
Given that the initial deployment timelines did not give DSM time to ramp up internal resources, OpenSymmetry was able to provide post go-live coverage to DSM for bespoke tech and biz ops support through monitoring their day-to-day processes through:
⢠Proactive analysis of solution performance to identify process degradation, which when occurring can be addressed before having any negative impact
⢠Ensuring technical queries can be handled within the company SLAâs while DSM administrators continue to build out their product knowledge
⢠Continued solution enablement to DSM admin users to enhance product knowledge and increase level of self-suffi ciency on daily administrative use cases and basic change management
⢠Offer knowledge, guidance, and oversight of new initiatives and campaigns where the solution needs to be expanded across a wider company footprint
Assess & Improve:
Since replacing their DSM solution with the bowtie approach, the DSM Comp Team were inundated with requests to expand its footprint and to extend its capabilities across new business functions. While positive engagement is exactly what customers originally hope for, it can also present some signifi cant challenges when there is no governance model in place.
What OpenSymmetry often perceive to be the fi nal piece of the success jigsaw, workshops were once again conducted to understand the current change management model and to identify how could change continue to be implemented in a structured manner while keeping the salesforce and business positivity in check.
Through the adoption of a structured model that focused on clear communication and realistic timelines, DSM is able to transparently manage all requests through a process where change happens and is done so with appropriate controls.
The Results:
In partnership with OpenSymmetry, DSM moved from reactive to proactive.
DSM was able to:
- Select the right technology based on their current and future needs
- Implement their selected technology quickly and effectively, through a phased approach standing up their goal setting process
- Establish a smooth goal-setting and quota adjustment process
- Provide their sales reps, managers, and executives with ongoing performance reporting, delivering increased insight and motivation
- Effectively manage requests for changes from the business
Download a PDF of this Case Study >>
About DSM:
Royal DSM is a global, purpose-led, sciencebased company active in Nutrition, Health and Sustainable Living. DSMâs purpose is to create brighter lives for all. Our products and solutions address some of the worldâs biggest challenges while simultaneously creating economic, environmental and
societal value for all its stakeholders – customers, employees, shareholders, and society at large.
To learn more, visit www.dsm.com
“OpenSymmetry helped us perform a full âbuild vs buyâ analysis including key considerations and common risks when considering in-house solutions vs purchasing an SPM solution from the market, which, when followed, it soon became apparent that implementation of external technology provided a better functional fit and future proofing.â
Want The PDF Version?
About Us
OpenSymmetry enables clients to achieve greater operational efficiency and get better sales results. We are a global consulting company specializing in the planning, implementation, and optimization of industry leading technology suppliers of sales performance management solutions.
CONSIDERATIONS WHEN REPLACING YOUR SPM TECHNOLOGY SOLUTION
Understanding the challenges companies face when migrating Sales Performance Management (SPM) technology solutions can be a significant undertaking. This paper is designed to provide high-level guidance to stakeholders who carry this responsibility. As OpenSymmetry has helped many companies evaluate and effectively migrate to new technology solutions, we are sharing seven key areas that we find critical to completing this kind of effort.
1. CURRENT STATE ASSESSMENT & FUTURE STATE PLANNING
A critical initial step before migrating to a new SPM solution is understanding how well your current program is performing across people, processes, and technology. From there you can devise a future state vision for how your SPM program should operate. By understanding both current state gaps and what your future state needs look like, you can effectively begin defining requirements while also clearly articulating success criteria. Itâs important to recognize that your previous or initial SPM implementation may not have gathered all necessary processes/requirements, so itâs vital to take a fresh, holistic view in this first step.
2. DATA INTEGRATION
One of the most complex and time-consuming requirements is determining how to best leverage current source data feeds to support the new platform. Within the context of your current state assessment and future state planning, the team should review what their reporting, analytics, and any future state compensation elements needs are to ensure a meaningful inventory of data requirements are defined. SPM solutions vary in terms of how data is gathered, translated, and uploaded into the system. Some solution applications may have a standardized format requiring additional configuration, whereas others may have the ability of data field mapping, which provides additional flexibility. The ability to own the data translation from your source systems to the SPM platform is key. Another focus point is to ensure that you evaluate all manual feeds to incorporate automation, as well as any additional error validation processes.
3. HISTORICAL DATA
Migrating historical data is an often-overlooked requirement when moving from one SPM platform to another. To keep costs down and minimize complexity, clients may want to ID only the data that is needed to ensure ongoing management of comp (e.g. payment history) and then transfer detail-level data into data storage to be referenced at a future date. It is important to consider what historical data is needed for the new system for reference on future payments
4. PROCESS IMPROVEMENT
Each SPM solution may require users to interact with the system in different ways. This area may need additional attention, especially as it has the potential to improve processes currently employed to manage sales compensation. Understanding the impact a new system will have on current processes, as well as those who manage the processes, is critical to ensuring a successful launch and ongoing management of core processes. As an example, two of the leading solutions in the market have very different expectations regarding the skills users need to possess to effectively maintain compensation plans and reports and, in some cases, execute the day-to-day activities. Defining expectations of your staff related to the new technology, prior to the project, will ideally give your organization the necessary time to introduce training that ensures effective ongoing management of the program.
5. WORKFLOW
SPM solutions vary widely in their ability to support automated workflow. As a result, there are significant challenges for sales compensation teams related to an SPM migration. Capabilities can range from templates to existing documentation, levels of routing, and even implementation of a stopgap for a payee to accept plan documentation prior to payout. Within the context of your future state definition, capturing and defining areas where automated workflows can be leveraged is a necessary part of the core requirements. Before a new system is deployed, it is important to map these processes out to drive user adoption, leverage the SPM system as an auditable repository, and minimize email management.
6. REPORTING & ANALYTICS
It is critical to develop a holistic vision of information distribution to the various stakeholders and tools used to deliver this content (i.e. static pages vs. dashboards). Similar to workflows, different vendors have various capabilities related to reporting for the end users. Assessing these capabilities against your business requirements is imperative to the success of the roll-out. For example, some vendors require more robust configurations in the system (e.g. crediting logic) to enable specific analytics capabilities, while some solutions, architected specifically for reporting and analytics, have much more robust capabilities. Another area for consideration is the use of the vendorâs reporting solution against your in-house technology stack. Some solutions make it easy to port data into new environments, which could be a consideration in helping to keep the number of reporting tools requiring management to a minimum.
7. DEPLOYMENT
The implementation of a new solution should be designed to minimize the impact on payees and managers. One of the most critical aspects of your effort is assessing how all stakeholders will be impacted and how to mitigate any disruption. It is important to identify upcoming changes for your sales organization, administrators, and other internal partners with a plan in place to offer the steps needed to ensure the best chances for solution adoption.
The first step when considering a new SPM platform is an assessment of your current program and the development of a future state vision. OpenSymmetry offers a no-cost workshop to help you gain an understanding of how your current SPM program performs against your needs and industry best practices, as well as a readout on current solutions in the market.
Leveraging the OpenSymmetry assessment methodology and knowledge of the leading SPM providers, you will be equipped with:
⢠A current state analysis scorecard
⢠The framework for a business case to support change
⢠Contemporary intel on the SPM market and SPM vendor capabilities
⢠High-level deployment and license cost estimates