Axtria Insights

Axtria Insights

CASE STUDY
Incentive Compensation Program Implementation for the Specialty Subsidiary of a Top 10 Global Generic and Specialty Pharmaceutical Company

Situation

  • Client’s incentives program was managed in an ad hoc manner. As a result the client was facing a lot of issues.
  • The client had two existing sales forces, called Professional and Specialty, and was planning to launch a new sales force with the advent of the New Year.
  • In addition, the Managed Care team was also included in the scope. All positions in the sales force hierarchy of the teams, totaling at least a dozen in number, were in the scope of the project.


Challenges

The IC administration business rules were spread across multiple directions -

  • Complex eligibility rules for new hires, transfers, and promotions
  • Territory product weights changed across attainment periods
  • Territory segments changed across attainment periods
  • Annual President’s Club award used attainments from all attainment periods in the year
  • Multiple payout curves for products with complex rounding rules

Similarly, goal (quota) setting business rules were complex

  • Goals were based on historical and opportunity philosophy
  • Old data was available for opportunity calculation


Approach

  • Axtria leveraged its “Sales Performance Management” module as part of the Axtria SalesIQ™ platform to help design and implement an effective incentive compensation program
  • Axtria followed a structured transition process to ensure transfer of responsibility occurs with minimal disruption to the client
  • Two pain-points were identified by the team during transition phase – lack of documentation with client, and non-availability of cycle plans.
  • Axtria provided the following solutions to these two pain-points when the team moved from transition to production phase.
    • Axtria created various documents to record all business rules and processes
    • Axtria created and shared production calendar for both IC admin and goal setting

 

Results

Axtria’s dedication and quality of output earned us the Client’s goodwill and laid the foundation for a strong multi-year partnership.  We are now discussing the implementation of incentives program with the global team.