Financial services and banking organizations are challenged with aligning sales performance with corporate goals to drive business growth. In addition to financial performance, one of the largest challenges financial institutions face today is managing the balance of meeting regulatory requirements without potentially disrupting performance. To help your organization manage performance and risk data against regulatory reporting requirements, you need to develop an enterprise-wide governance structure to gain control over sales channel compensation programs. In this webinar, our experts covered: -Challenges around sales performance, Dodd-Frank and compensation governance in financial services -Industry-focused use cases and best practices for sales performance management solutions -Case studies of leading financial institutions implementing sales performance and compensation management Our experts also demonstrated how IBM Cognos Incentive Compensation Management enables organizations to achieve operational efficiency and reporting accuracy, greater data transparency, reduced risk and detailed sales performance analytics.

1. Increase Financial Firms' Sales
Performance & Compliance with
Compensation Management
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2. About Perficient
Perficient is a leading information technology consulting firm serving clients throughout
North America.
We help clients implement business-driven technology solutions that integrate business
processes, improve worker productivity, increase customer loyalty and create a more agile
enterprise to better respond to new business opportunities.

3. Perficient Profile
• Founded in 1997
• Public, NASDAQ: PRFT
• 2013 revenue ~$373 million
• Major market locations throughout North America
• Atlanta, Boston, Charlotte, Chicago, Cincinnati, Cleveland,
Columbus, Dallas, Denver, Detroit, Fairfax, Houston,
Indianapolis, Los Angeles, Minneapolis, New Orleans, New
York City, Northern California, Philadelphia, Southern
California, St. Louis, Toronto and Washington, D.C.
• Global delivery centers in China, Europe and India
• >2,100 colleagues
• Dedicated solution practices
• ~90% repeat business rate
• Alliance partnerships with major technology vendors
• Multiple vendor/industry technology and growth awards

4. BUSINESS SOLUTIONS
Business Intelligence
Business Process Management
Customer Experience and CRM
Enterprise Performance Management
Enterprise Resource Planning
Experience Design (XD)
Management Consulting
Our Solutions Expertise
TECHNOLOGY SOLUTIONS
Business Integration/SOA
Cloud Services
Commerce
Content Management
Custom Application Development
Education
Information Management
Mobile Platforms
Platform Integration
Portal & Social

5. Introduction
Hemant Jaiswal
Director of Financial Services, Perficient
Hemant has more than 15 years of experience in information
technology and management consulting, advising a large cross-section
of Fortune 500 clients in financial services. He manages
Perficient’s wealth management vertical.
Chris Skinner
Incentive Compensation Management Solution Architect, Perficient
Chris is an industry expert in sales performance management and
incentive compensation management, with more than 10 years of
variable compensation plan design, configuration, reporting and
solutions experience.

6. Industry-Driven Solutions Global Delivery Centers/Offshore Delivery
Deep Financial Services Domain Expertise
Deep Financial Services Domain Expertise
Enterprise
Information Solutions
Finance
Enterprise Insights
Portal
Web Content
Social Solutions
SOA
Cloud
API Solutions
Company Wide Practices
BANKING
Wholesale
Consumer
Credit Unions
Payment Processing
Trust & Custody
Trade Services
Treasury Services
ASSET & WEALTH
MANAGEMENT
Equities & Fixed Income
SMA & Wrap
Hedge Funds
OMS & EMS
Portfolio Modeling
Portfolio Accounting
CAPITAL
MARKETS
Equities & Fixed Income
FX & Commodities
Future & Options
Electronic Trading
INSURANCE
Investments
Customer Acquisition
Property & Casualty
Life Annuities Services
Claims Evaluation
Underwriting
Consumer Direct
Business/
Technology Solution
Rationalization
and Delivery
Business Process
Improvement
Program Value,
Quality and
Cost Management
Client
Centricity
Risk and Regulatory
Compliance
Finance
Transformation
Solutions & Services

7. Impact on Financial Institutions

8. Compensation Regulation
Considerations

9. Compensation Regulation Considerations

10. Relationship of Compensation & Risk
Compensation and risk must be
tied together. The risk taker who
bets firm or client capital must
bet their current and future
compensation.

11. Current Compensation Environment
How are companies
currently calculating
variable compensation?
CSO Insights - 2013 Sales
Compensation & Performance
Management, Key Trends Analysis
Spreadsheets
54%
Home Grown
(22%)
Commercial
Software
(14%)
Manual
(7%)
Analyst estimates of variable compensation overpayments range from 2% to 8%
(Accenture: 3%-5%; Deloitte: 4%-7%; Gartner: 2%-8%)
Company with $30M in variable comp will overpay $600k to $2.4M every year

12. Limitations of Existing Solutions
Spreadsheets Home Grown Manual
 Labor intensive
 Non-centralized
 Error prone
 Lack of auditing
or reporting
 Custom coding that
few fully understand
 Aging legacy
systems
 Difficult to update
 Rely on additional
software for
reporting
 No automation
 No functionality

13. What is in an SPM Solution?
Central Database
Hosted locally or in the cloud
a single database contains the
entire solution
Calculation & Reporting
Automation of compensation and analytics
calculations. Custom web reports display any
variety of outputs
Administration
Provides audit tracking,
inquiry management,
approval workflows
Integration
Existing client transactional and
HR data pulled in seamlessly
$ £ €
Integration Calculation
Database Administration

14. Benefits of SPM Adoption
Reduce errors
Shorten cycle times
Replace technology
Mergers & Acquisitions
New Comp Plans
Business Re‐Orgs
Risk
Reduction
Internal Audit
Compliance
Dodd‐Frank
Business
Enablement
Efficiency &
Accuracy

15. Cognos ICM

16. What is ICM?
Incentive
Compensation
Build, model and administer
variable pay programs that drive
desired sales behavior
Channel
Management
Gain a single, accurate view
of your entire sales force and
all your distribution channels
Territory Management
Manage crediting and frequent sales coverage
changes across territories
Territory
Management
Quota
Management
Channel
Management
Incentive
Compensation
IBM Cognos ICM
Varicent
Quota Management
Plan and distribute quota targets efficiently across all levels
of your sales organization
ERP CRM HRIS
$£ €
BI Other

17. Addressing Compensation
Regulation Challenges
Incentive
Compensation
Guidelines
Clawbacks
and
Forfeitures
Risk Management
Processes and
Controls
Communicate
appropriate plan
documentation to every
payee and track their
review and
acknowledgment.
Automate the recovery of
earnings previously paid
out on investments now
identified as having gone
bad.
Multiple solutions for risk
management and
compliance
requirements:
• Workflow
• Inquiry Management
• Auditing

18. Technology
System
Upgrades
Operate
with
Uncertainty
Centralize all
compensation processes
into a single system
whose backend will be
dynamically upgraded in
the cloud to ensure an
appropriate level of
support for any level of
complexity.
Federal regulators have
already approved ICM as
a solution for these
requirements.
Balance Risk
Versus
Reward
Modeling of future plan
changes and “what-if”
scenarios to aid in the
development of proper
plan designs.
Addressing Compensation
Regulation Challenges

19. Industry: Banking
Sales Force: 5,000 payees
Case Study: Bank of the West
Challenges: Communicate role-specific sales incentives to thousands of employees across
multiple geographies. Reliance on multiple legacy solutions created inefficiencies. A lack of
reliable and timely reporting led to the employees performing their own “shadow accounting”
Why ICM?: Ability to centralize data shared across all compensation plans
Solution Benefits:
 Increased transparency in incentive tracking
 Payees have online access to real time reports
 Increased accuracy greatly reduced number of compensation inquiries
 Ease of compensation plan design changes
 ICM analytics assist in smarter compensation plan design
http://www-03.ibm.com/software/businesscasestudies/us/en?synkey=T961508R00948T94

20. Industry: Financial Services
Sales Force: 3,200
Case Study: Elavon
Challenges: Multitude of home grown systems created an IT-intensive and expensive solution
Why ICM?: Ease of design, “on the fly” scenario configuration and web based reporting
Solution Benefits:
 Compensation admins no longer rely on IT to make regular adjustments to the system
such as adding new product lines
 All results are now visible within 48 hours of closing a month instead of over two weeks
for partial results
 Multi-language support allows reports to be distributed to non-English regions
 Automated dispute resolution follows a hierarchy-based workflow
http://www-03.ibm.com/software/businesscasestudies/us/en?synkey=Z298172W48404B43

21. Questions?

22. Download our White Paper:
http://www.perficient.com/Thought-Leadership/White-Papers/2014/Overcoming-Strategic-Challenges-of-Dodd-Frank
• Components of Dodd-Frank and various
guidance principles issued by the Federal
Reserve Board (FRB) and other regulatory
bodies
• Sales performance management (SPM) as a
solution to address these regulations
• Benefits of implementing IBM Cognos
Incentive Compensation Management (ICM)
as a solution to meet the regulatory
requirements and guidance principles

23. Thank You!
For more information contact:
Chris Skinner
Chris.Skinner@perficient.com
Hemant Jaiswal
Hemant.Jaiswal@perficient.com
www.perficient.com
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