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The Magazine

Issue 12

We speak to the key decision-makers looking to steer their businesses through these choppy economic waters.

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Spencer Green
Chairman, GDS International

Sales and the 'Talent Magnet'

A lot is written about being a ‘Talent Magnet’, either as a company, or as President. It’s all good practice – listen, mentor, reward, provide clear goals and career maps. Good practice for the employer, but what about the employee?
25 May 2011

Solving compensation management

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A lan Marrott, President/CEO of Glocent, speaks exclusively to CXO about the ins and outs of Incentive Compensation Management (ICM), saving companies time and money.

“Based on a company's size, Glocent reduces commission administration overhead by up to 80%”
-Alan Marrott, Glocent

CXO. For those interested in understanding more about ICM software, would you share some thoughts about the market and your approach to it?
Alan Marrott.
First, I think that it’s important to clearly define the ICM market. It isn’t the old performance management business where automated systems fell short of expectations; and it isn’t the recent makeover of those applications, now being touted as Sales Performance Management (SPM) systems. Succinctly put, it is the automation of the manual processes, or the improvement of out-dated internal systems, currently used to collect, track and evaluate sales data needed to compile critical business intelligence. Using that previously untapped business intelligence, ICM software accurately calculates variable pay, while also assisting business executives to more effectively motivate sales forces and develop more profitable sales strategies.

Recent regulations, such as Sarbanes-Oxley, and the current economic downturn make the market more appealing than ever before. Research confirms that over 90 percent of businesses, which would benefit from automating the process, still use spreadsheets. This confirms that the market is in its infancy; and it should flourish for some time to come. Glocent was designed to address any ICM challenge. Unlike performance management systems, its architecture and algorithms support unlimited flexibility and extreme complexity. We have yet to encounter a business strategy for which we could not model, calculate and reports incentives, and we have encountered some very complex scenarios.

CXO. After developing and marketing your product over the past eight years, how would you differentiate Glocent from other sales compensation solutions?
The answer to that question lies in the philosophy behind Glocent. Where other applications claim to simplify what is perhaps the most difficult financial process to automate, Glocent bases its data collection and calculation capabilities around accommodating even the most complex sales scenarios. While competing vendors promote their 'on-demand' products, we argue that attempting to simplify this strategic process undermines a businesses' sales arsenal. We don't ask a client to adapt to our system, we eagerly adapt Glocent to model their business needs. We are so confident in our product's capabilities and value that we remove all risk for our clients. Once we guide you through the requirements process, you will understand why we are so confident.

CXO. Can you share with us some of the specific benefits your clients have gained after implementing your system?
With our 'we grow as you grow' pricing philosophy, every client realises an ROI from purchasing Glocent within the first year, if not immediately. Based on a company's size, Glocent reduces commission administration overhead by up to 80 percent. Glocent also brings full transparency to the incentive management process. Everyone, from the sales rep to the CFO, knows how commissions are determined. Commission disputes are virtually eliminated. Perhaps most important, the credibility that Glocent brings to the variable pay process leads to increased productivity and profitability.

CXO. Given the current state of the global economy, how do you expect it to affect your business?
I believe that most business leaders agree that the present crisis will demand higher levels of financial accountability and transparency. Correspondingly, we have received more unsolicited inquiries about or product and consulting services during the past three months than any other quarter in the company's history. Glocent has proven that it is one of the most efficient means to cut costs while also increasing revenue. Since we have operated our company without incurring any debt, and grown only as fast as the client base supported, we are confident that we not only will survive the uncertain times of the future, but actually expect to experience significant growth.

Alan Marrott has over 20 years of experience in international software development and management consulting. Before founding Glocent, he held a variety of positions at Weyerhaeuser, American Management Systems, Nynex, Mannesmann Mobilefunk and US West. He graduated from Brigham Young University with a BS in Management Information Systems.

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