What is Pervasive Performance Management?

Pervasive Performance Management is a single business wide pay for performance solution — recognition that for organizations to truly align performance throughout the business, they require a single pay for performance solution that addresses the unique variable pay requirements of both sales and the broader business, from sales commissions through to bonuses and objective management.

illustrative diagram for Pervasive Performance Management, which is at the merger of Sales Performance Management (SPM) and Employee Performance Management (EPM)

Organizations are increasingly recognizing that deploying multiple pay for performance solutions to manage sales commissions, bonuses and objectives across different aspects of the business slows execution of business strategies and adds administrative overhead. In fact, one leading analyst estimates that by 2012, 50% of customers will consolidate their talent and pay for performance portfolios down to one or two vendors.

 

Variable pay should reward the achievement of specific individual goals linked to corporate goals across the enterprise and not be reserved for sales and management roles.

— The Forrester WaveTM: Integrated Performance And Compensation Solutions, Q3 2007
Zach Thomas, August 17, 2007

 

Pervasive Performance Management starts with a robust flexible compensation management foundation - enabling organizations the complete range of pay for performance programs. Both managing and processing both transaction driven sales commission plans and workflow based bonus and objective based programs. The foundation provides strong effective dating, business rules, and auditing essential for the creation and ongoing management of sales and operations pay for performance programs.

With this foundation, Pervasive Performance Management supports both complete Sales Performance Management (SPM) — sales optimization and strong sales compensation reporting to improve sales productivity, while also supporting the key pay for performance aspects of Employee Performance Management (EPM) for the broader business – such as manager reviews, scoring, bonus allocation, objective management and approval.

Five Key Tenets of Pervasive Performance Management:
  1. A single robust compensation management foundation that supports both sales transaction based commission programs and objective management including MBO/KSO/Bonus programs for the broader business.
  2. End to end Sales Performance Management for sales to optimize quotas and territories, manage and calculate incentives, and communicate and analyze sales performance.
  3. MBO and KSO management for the broader business to distribute business objectives, score performance, estimate and allocate bonuses, timely and accurate calculation and payment.
  4. Combined pay for performance programs: Add critical MBO/KSO programs such as customer retention across sales and non-sales plans.
  5. Comprehensive pay for performance analytics across sales and non-sales to continually monitor and improve business alignment.

 

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