Creating a territory program is the first step to setting up parent and child level territories (the branches and leaves of your tree). When creating a new territory program, you can use the Wizard that steps you through the process.
To create a territory program:
- Choose Create (+) from the Territory Programs workspace.
- Required: Enter a Name for your territory program.
- Required: Select the processing Calendar for use with the territory program. The calendar determines the structure of the periods that are available and how they map to real world dates. Once the territory program is saved, this option cannot be changed.
- Required: Select the top-level Period Type. The selected period determines the period for the primary quota managed by the territory program.
- Required: Select the actual Period that the territory program will cover and for which the quotas will be assigned.
- Select any Business Units for the territory program if they apply.
- Select the Quota Setting Methodology – top-down or bottom-up. This can be changed later. Based on the methodology chosen, additional options will be displayed. We will cover details on each methodology in Unit 7.
- Top Down
Top-Down quota setting starts with a Quota value assigned to the root territory in the territory program. The Quota is then allocated and distributed to the lower-level territories, one level at a time, by the director or manager at each level. This process repeats until the Quotas are assigned all the way to the rep level territories.
- Uplift allowed: Select if uplifts are allowed within this territory program.
- Baseline Calculation: Define a baseline period for calculating the year-over-year growth percentages for pending prospective quota values based on historical performance in a territory over the specified baseline period.
- Sub-Period: You can view the monthly and quarterly historical performance over the specified baseline period.
In contrast to top-down, the bottom-up quota setting methodology starts with a quota assigned at the representative level of the hierarchy, and rolls up to managers, departments, and other higher levels.
- Baseline Periods: Enter the number of baseline periods.
- Sub-Period: This is the granularity level used to determine the start and end of the baseline period.
- Growth Target %: Set the default growth target for the program.
- Attrition Relief %: The attrition relief percentage is applied to the result of the sum of the baseline and growth rate.
- Quota Reduction Factor %: The quota reduction factor is aggregated from subordinate territories and reflects the reduction in the roll-ups of quotas.
- Top Down
- Quota Allocation Dimensions: You can further break down quotas by account, period, and product dimensions. Managers can select any of the Accounts, Product, and Period as a primary parameter that defines the quotas, considering seasonality, account performance, and product performance targets. You must distribute the Quota Target Type to view the allocated territory program’s quota breakdown in a New or Classic layout.
- Set the Program Options. Additional information is available in the Program Options section below.
- Select the Geography Hierarchy from the dropdown list. Any geography that has already been added to the Geography workspace is available for selection in this step.
- Enter the territory program's Effective Dates. The Effective Start Date is the date for which the territory program becomes effective, or active, and the Effective End Date is the date on which it is no longer active. Sales managers and representatives can view the effective dates only after the quota has been distributed
- Review the territory program Summary.
- Select Finish to save the new Territory Program. The Territory Tree tab will be shown so you can begin building the territory hierarchies.