Sales Compensation Management Automation Reduces Payment Variances to Under 3% of Forecast


A large division of a financial services giant needed an automated sales compensation management solution capable of forecasting payments, accurately reporting results, and providing clear visibility into plan performance.


The manual, spreadsheet-based means used for calculating and reporting sales commissions presented a number of issues:

  • An inability to model plans and forecast payments for an uncapped incentive compensation plan exposed the company to unlimited, unplanned compensation expenses.
  • With spreadsheets lacking supporting information, the sales force had limited understanding of how commission payments were calculated. In addition, inaccuracies in results precipitated a large volume of calls from the field and a timeconsuming process for managing disputes
  • Because senior management lacked insight into under- and highperforming teams, the ability to drive the behaviors that could lead to growth opportunities was hindered.


Optymyze’s improvement of processes and automation of their management of sales compensation helped the company meet its objective of giving the sales force the most accurate information and top-of-line service. These changes resulted in the following:

  • Utilizing Optymyze’s plan modeling expertise, the company gained the ability to project payments to individuals, teams, and channels. As a result, payment variances fell to just 1 to 3 percent of forecast.
  • Online monthly commission statements were transformed reducing calls from the field by 75 percent, and giving reps a new level of confidence in payment accuracy.
  • New, comprehensive plan performance reports provide management with the information to identify trends, make adjustments, preview impacts of plan changes, and more effectively coach and train the sales force.



  • Limited Modeling
  • Misunderstood Plans
  • Lack of Information


  • Lack of Expertise, Experience, and Time
  • Inefficient Processes
  • Inflexible Systems


  • Plan Modeling and Analysis
  • Field Communications
  • Process Compliance Controls
  • Crediting of Transactions
  • Distribution of Reports and Analyses

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