BO Boot Camp Case Study

Prepared for Good Pills

July 21, 2017
This presentation is solely for the use of ZS Associates personnel. No part of it may be
circulated, quoted or reproduced for distribution outside of ZS Associates without prior
written approval of ZS Associates.
Pune | +91 20 6606 5000
 SCQ – Typical project

Good Pills need to improve its current incentive plan for its Sales force

Situation
 Good Pills manufactures a drug “Imbru” for
patients with Hyperlipidemia.
 Imbru’s market in India is expected to double
in size in next 4 years
 Incentive Compensations are based on Key Questions
monthly sales with goals set by the Regional
Managers in consultation with their Area  What is the optimum Sales
Managers Compensation Strategy?

 How operations for administering the

compensation plans should be
setup?
Complication

The Sales force is dissatisfied with their

compensation plans.

© 2015 ZS Associates | CONFIDENTIAL −2− BootCamp_Case Study

 Monthly payouts based on attainment

300%

% Target Bonus(Y)
250%
250%
200% 178%
150%
100%
100%
50% 50%
25%
0%
50% 100% 150% 200% 250% 300% 350%
Attainment(X)

Bonus Quarterly Quarterly January Payout

Region Name Sales Goals Attainment % Target Bonus
Tiers Target Bonus Payout Values Values
Maharashtra 20400 12000 170 226 A 11000 $ 24860 $ 8286.66 $
Delhi & NCR 10450 9500 110 178 B 10000 $ 17800 $ 5933.33 $
MPCG 9975 10500 95 75 B 10000 $ 7500 $ 2500 $
South 8000 8000 100 100 C 9750 $ 9750 $ 3250 $

© 2015 ZS Associates | CONFIDENTIAL −3− BootCamp_Case Study

 Inclusion of Sales Growth percentage as a performance metric

Region Region Name Q4 Sales(Oct - Dec 14) Q1 Sales(Jan - Mar 15) Growth Growth %

North Delhi & NCR 26125 31350 5225 20

South South 51300 55917 4617 9

East MPCG 19950 29925 9975 50

West Maharashtra 19200 24000 4800 25

Percentage Target Bonus according to Rank according to payout % Growth in quarterly Rank according to sales
Region Region Name
Attainment based on attainment sales growth percentage

North Delhi & NCR 178 2 20 3

South South 100 3 9 4

East MPCG 75 4 50 1

West Maharashtra 226 1 25 2

Payouts based on Growth and sales volume metrics disagree.

© 2015 ZS Associates | CONFIDENTIAL −4− BootCamp_Case Study

 GOAL WORKBOOK
Product Account IDs Account name Zip Ids City Regional Sales State Regional Sales Forecast sales Regional Goal

Sum of sold Sum of sold Sum of sold

Sum of sold Sum of sold Sum of sold
product A product A under product A under
product A product A under product A under
  under all ids all account all Regions   National Goals  
under an ID all ZIP ids under a all Cities under
under a names under a under a State
anually City name a Region name
account name Zip Id name

A
10 20 40 50 60 100 60 150 10800
(Imbru)

B 50

C 40

D 30

© 2015 ZS Associates | CONFIDENTIAL −5− BootCamp_Case Study

 Process Flowchart for producing Goal Workbook

Confirm With Customer FINISHED

YES

National Goals, Last Quarter Sales,

Territory Mapping, Product Mapping. NO
Does the data pass all
Technical Analysis
Quality checks?

Calculate Regional Goals Fix the issue

NO
Error Report Does the data pass all
Input checks?

Region Wise Product Sales

Calculation NO
YES Issue Resolved?

YES

ZIP wise Product Sales

National Goals, Last Quarter Sales, Confirm With Customer
Calculation
Territory Mapping, Product Mapping.

FINISHED

© 2017 ZS Associates | CONFIDENTIAL −6− 3b

© 2015 ZS Associates | CONFIDENTIAL −7− BootCamp_Case Study
 Recommended Adjustments

26700
Monthly Quaterly Semester

14800
Payout

9078
8900

8900

8722
8544

7725
7500
2500
1250

0
0

0
0
jan feb mar a p r il may ju n e ju ly a u g u st sept o ct nov dec

Time

Payout should be calculated on a semester basis.

© 2015 ZS Associates | CONFIDENTIAL −8− BootCamp_Case Study

 Appendix 4.1

Sales and Alignment vs Time

6000 12

5000 10

4000 8
Sales Volume

3000 6
Sales

2000 4

1000 2

0 0
jan feb mar april may june july august sept oct nov dec

Timeline

Sales and Alignment Dummy Data

© 2015 ZS Associates | CONFIDENTIAL −9− BootCamp_Case Study

 Appendix 4.2

Monthly Quarterly Semester Annual

Month Sales Attainment Goal Target Payout Attainment Target Payout Attainment Target Payout Attainment Target Payout

jan 5000 90 5555.5556 25 1250

feb 5200 50 10400 0 0 0.696037 0 0
mar 5000 85 5882.3529 0 0
0.83475 0.25 7500
april 5000 110 4545.4545 178 8900
may 4800 120 4000 178 8544 1.04957 1 14800
june 5000 90 5555.5556 50 2500 0.865154 0.25 15225
july 5000 115 4347.8261 178 8900
august 4900 120 4083.3333 178 8722 1.242337 1.78 26700
sept 5100 140 3642.8571 178 9078
0.89687 0.25 7725
oct 5200 80 6500 0 0
nov 5300 70 7571.4286 0 0 0.710484 0 0
dec 5400 65 8307.6923 0 0
Total 60900   70392.056   47894     41500     15225     15225

Sales and Payout

© 2015 ZS Associates | CONFIDENTIAL − 10 − BootCamp_Case Study