Implementing an Automated Incentive Plan
The process of translating your company's strategic focus into a
tangible ePlan Automated Incentive Plan is methodical and serves to
align the company's strategic goals with the Incentive Pay Plan. The
stages outlined below illustrate the basic phases of implementation.
While automation of the plan does not occur until the last stage,
examining the power and flexibility of an ePlan solution in the early
stages will yield a greater benefit overall. The Incentive Plan design
team then has the opportunity to free themselves of the many classical
constraints of Incentive Pay - the administrative and latency burdens
associated with traditional processes.
Stage 1
Develop Business Strategy
Document the objectives, roles and processes required to maintain
alignment with mission. Revise or add roles/processes as necessary.
Stage 2
Define Financial Parameters
Define corporate budgets, market size/revenue, gross profit/project,
individual income levels, etc. associated with objectives.
Stage 3
Detail Performange Metrics
Define in detail the specific performance metrics based on job role,
ability to impact results, and measurability of specific contribution.
Stage 4
Draft Plan Elements
Oultine the plan elements and their associated mathematical and logical definitions.
Stage 5
Define Closed Loop Verification Process
For each element, define where and when verification data will enter one or more systems within the organization.
Map the verification data inside of the e•Plan data flow, pushing any updated data back into the required system(s).
Stage 6
Define Required Delivery Mechanisms
e•Plan is designed to deliver its reporting data to nearly any device, including PocketPC's,
cell-phones, T9 Devices, eMail, and Voice Mail, as well as the ubiquitous browser. Mapping user needs
to these devices is a critical step in the implementation process.
Stage 7
Deliver e•Plan Functionality Via Structured Rollout
For best results, it is recommended that e•Plan be deployed in specific steps rather than
an "all at once" method. A pilot step is often critical to user buy-in, as it will
clearly demonstrate the entire process to the rest of the organization.
Summary
e•Plan's inherent flexibility allows complete implementation in any organization.
Measurements and goal tracking can be done in business unit dollars, performance points,
or a combination of the two. For a purely financial-based Incentive Plan,
e•Plan uses currency data types for easy conversion around the world. For
organizations which measure productivity in units, volume, or other non-monetary
statistics, ePlan adopts a points-based calculation methodology. Various gateways and
input methodologies can be easily integrated into the system, such as automatic
e•Plan is designed to adapt and overcome the limitations of current Information System
environments, and can easily serve as a Performance Dashboard for the company,
business unit, or individual. Executives may even choose to monitor and troubleshoot
the performance of their organization from a single e•Plan screen,
creating an instant decision support mechanism.
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Assessments
