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Managing Quota Settings

Objective

After completing this lesson, you will be able to Manage quota settings for a territory program.

Managing Quota Settings For a Territory Program

At this point, we have created a territory program that contains a number of territories. Now, it’s time to see how we can apply quotas to these territories. A quota is defined as the target sales amount for a position for a specified range of dates. You may have seen this referred to as a goal or target; the terms can be used interchangeably.

Quotas can be very specific, or very broad. They can also be associated with different date ranges. Using the example of our growing company, Bikes In Motion, let’s look at a few examples of quotas:

Each Sales Representative must sell 100 bikes each quarter.
Terry Callahan has an individual quota to sell $100,000 worth of apparel each month.
Amy Whitton has an annual sales quota of $1,500,000.

If all payees had the same quota, this would be relatively easy to set. However, in the real world, compensation teams must manage large teams in which each payee has a different quota. The Quotas workspace allows us to manage these quotas using interactive workflows that ensure each payee’s quota is fair and achievable based on historical data, upcoming opportunities, and manager input.

Quota Settings in Program Options

When we created the territory program, we were prompted to select various program options. Several of these options are specific to quota setting and allow us to fine tune the behavior of the program as it relates to quotas.

If you need to modify the options once the territory program has been created, they can be accessed from the Detail tab in the territory program.

Quota management program options include:

Use adjusted data for year over year growth: allows you to automatically set adjusted values of historical sales as the default during quota calculations for Bottom-Up territory programs. If this is disabled, the original value for the sale will be used.

Allow multiple positions per territory: allows you to assign multiple positions to a territory. This is a useful setting if you want to allow the system to split territories among multiple positions. If you select this option, another option will appear to indicate if the splits must add up to 100%.

Allow Sales Users to Bulk Accept Quotas: allows the sales users to accept quotas in bulk by navigating through the Manage Quota tab of a territory.

Automatically Recalculate Quotas on Account Transfer: automatically recalculates the respective territory's quota if an account is transferred from one territory to another.

Allow Negative Quota Values: allows you to set negative values for the territory program. If this option is disabled, an error message will appear if you try to add a negative quota.

A second set of options sets permissions for quota managers:

Allow Managers to Adjust Historical Data: allows managers to modify the historical sales data of their subordinate territories through the quota allocation screen's Transaction Summary tab.

To view the historical data, a manager can navigate to Territory Admin → Territory Programs → Territory Tree → Allocate Quota and choose the Transaction Summary tab.

Allow Managers to Download/Upload Quota : allows managers to upload or download quota values of their subordinate territories from the My Territories list.

Allow Managers to Edit Quota Breakdown: allows managers to modify the granular quota breakdown of their subordinate territories on the quota allocation screen.

Allow Managers to View Quota: Breakdown allows managers to view the granular quota of their subordinate territories on the quota allocation screen.

For both of the options above, managers can view the granular quota breakdown by going to Territory Admin → Territory Programs → Territory Tree → Allocate Quota and choosing Quota Breakdown.

Allow Root Managers to View Quota Setting: allows managers assigned to the root territory to use the Quota Setting button on the Manage Quota tab to access the derived quota values.

Quota Allocation Dimensions

The Quota Dimensions section of the territory program configures the granular quota elements for a territory program. Three dimensions can be set: Products, Accounts, and Period. You can configure which of these three dimensions is applicable to your territory program.

One of the configured dimensions must be designated as Primary and the remaining two dimensions can be selected as Secondary. The Primary dimension is set on the dimension on which the organization tracks quotas.

Secondary dimensions are optional. The quota of a secondary dimension can't exceed the value of its primary dimension quota; instead, the secondary dimension quota is used to break down the primary dimension quota.

Let’s look at an example. Bikes In Motion tracks quota amounts by account, so account is the primary dimension, while products and period are secondary dimensions. In this example, an account called Bayside Sports has an annual quota of US$10 million. They would like to also have quota breakdowns for different products at this account, so the Products dimension is also enabled and set as a secondary dimension.

To learn more about quotas, watch the following videos:

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