Incentive plans do not always support the business. A reason for change can be that there is little understanding how plans operate and how reward is calculated. Current plans do not support the hunt for profitable new business or better alignment of sales teams. The answer is to simplify the incentive plan arrangements and make it clear on link between what I do and how I get rewarded. OnCompass can support you on redesigning you incentive plans and have less incentive components, Strong line-of-sight, aligned with business objectives and drive of desired sales behaviors.
Investment modelling is used to decide whether or not an investment should take place or not. It is important to do it pre-approval of the project but also to do it post the project to have learnings for the future. Discounted cash flow analysis (DCF) is a widely used method for investment. All future cash flows are estimated and discounted to give their present values (PVs). The sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value or price of the cash flows in question. Present value may also be expressed as a number of years’ purchase of the future undiscounted annual cash flows expected to arise. OnCompass can support you in modeling your investments.
Budgetting can take up to 6 months’ time for companies. It is usually a time consuming exercise for all departments starting bottom up and ending top down. A clear direction and guideline from corporate can support the local team tremendously in building a budget. It is also vital that after the budget agreement between corporate and local the last changes are immediately built in on detailed level. Otherwise the budget will never be accepted on a local level. Oncompass can help you in making it a lean exercise.
It is well known that companies that use rolling forecasts had a better performance in crisis times then companies that only used annual budgets. Theories on forecasting identify different situations in which judgemental or statistical techniques or a combination of techniques is appropriate. When the availability of contextual data is low and the variability within the historical data is low then a statistical technique is appropriate. When the availability of contextual data is high and the variability within the data is high then a judgemental technique is appropriate. When either of both aspects are high or low a combination of techniques is appropriate. OnCompass can help you in selecting and implementing the techniques and models that are appropriate for your organisation.