Goal Setting, Incentives, Strategy and Action Plan for 2017

Reviving dead business


To:

 Subject: Goals   Incentivatization  of Performance and Sustaining a Culture of Performance and Achievement

1.  Objectives:

1.  To sustain growth year on year which has not improved over the last 3 years

2.  To sustain and support a culture of performance

3.  To make staff welcome change, new products and innovation and to welcome the same;

4.  To provide more income for the staff

5.  To make staff realize that to earn more money, you have mind the resources, avoid wastes, learn, take care of your people

and avoid things that will prevent you from achieving your target/sales

2. Reality:

1.  There were allegations of low morale, communications have been poor;

2.  People were not goal oriented and  not aligned towards their target (they do not even know their targets)

3.  They are not engaged in the business;  they dont care because they do not get anything extra;

4.  Sometimes actions are at cross currents, priorities are wrong and not focused on sales and collection and/or diverted to low 

    value added activities

3.  What:

This incentive mechanics is based on NCR, (Net Cash Received) which is what SPLP, other pre need companies and insurance are using.   The incentives can look generous and big, but because it is based on NCR, it  produces gross sales amount that are 5x times, and makes the company liquid because of emphasis on sales.

(As incentive this is a gift given to an employee for a job well done  and is not a regular benefit, that when taken away is a dimunition of benefits, an illegal activity.  The basis for the gift is the performance achievement)  It is not part of salary package that is to be given on regular basis irrespective of level of achievement)

   NCR is Total Cash Received (TCR)

           Less:    Discount

                       PC

                      VAT

                      Insurance (Capf)

                     Com (whether outright or in chk)

  (Refer to fund distribution chart) It should be the TF, and GAI only on first year:      10% + 20 = 30% of MA on first year for PMS, MP, and PIS on first year.

  It makes the staff conscious of :

     1.  Encouraging more cash payment/down payment

     2.  Minding collections of past or accounts in arrears (thus TA) and collection is not neglected

     3.  Minimizing expenses and reduction of discount  for spot cash

NCR shall be based on validated:   deposit slips and audited OR (therefore reporting should be prompt and accurate)

Because you have to plan for more sales and collection, naturally, if you accept this and motivated you will:

   On sales and marketing:

   1.  Improve customer service at the office, interment

   2.  Level up interment service:  avoid omissions, make sure interment is world class and beautiful

   3.  Speed up documents

   4.  Marketing:

       1,  Ads and promo

       2.  Tarps

       3.  Dalaw paburol

       4.  Brochures

       5.  Obits

       6.  FB

          (The above work can be delegated and prioritized

    5. Sales:

        More agents recruited

        Agents thoroughly trained, given exams and accredited

       Agents given targets likewise;   monitored motivated at sales meeting, text or call

       Commission and prizes promptly awarded

       Agents honored and treated well:   

            1.  Attending to their needs;

            2.  Being courteous and considerate

            3.  Recognized in:

                    Organizational chart;

                    Hall of Fame

                    Publications (bests, and FB)

                    Generous prizes (look at sales incentive proposal)

   Staff:

          Continuous hiring;  hiring passionate people and achievers

          Constant communication, training and motivation

          Reminding them of their goals, clarifying and repetition of goals

          Frequent and regular performance evaluation CCD if needed

Equipment:

          Constant look out for most efficient and durable equipment to make jobs easier (lessen expenses)

          Equipment needed to beautify park, make staff more efficient

          Excellent internet connection

          Software to make voluminous error prone transactions quicker and with less error:

                    Sales, inventory, document archiving, single entry transactions

         Wif, CCTV

Park:

          Constant landscaping, trimming,  cleaning

          Projects:  hardscape, landscaping, attraction

         Office:    CR, cleanliness, water, irrigation for plans

4.   PROPOSED NCR TARGETS:  (per month)

Sales (new)      PHP ( 000 omitted/per month
              LUMP     Panga     Calmb      Calap    Oton    BPI        HAMP       

 Plots      256         613.2           613.2      192           256

   

 PMS      59           155             148           59             67.4

   PIS      157         162.5           162          65.05         97.4

  Total 472             930.7        923.2        316.05       730

  Baseline:

 Now Gross  

    Now      1,500         3,500         2,500          500            1,500

    New         511         2,190        2.190            219.            730  

     I F             220           330            330             30              166 

Estimate

PLEASE TAKE NOTE THAT BPI BEGINNING 2017 IS TO BE TREATED AS AN SBU WITH SALES FUNCTION SO THAT IT WILL HARMONIZE AND UNDERSTAND THE BUSINESS OF SBU.  The sales admin can start selling plots (repeat sales)  and new products to existing customers both PIS and PMS

                  Say   plots       10  x 40     =  400,000

                           PIS         10  x 22          220,000

                          PMS        10 x 40          400,000

                           Total                          1,020,000

                           NCR                            say 200,000

  so that BPI can earn 10% com. This will make BPI harmonize well and be one with the SBU.  12 million sales a year is no mean feat.

N.B:  Let us register Holy Gardens Chapel and print receipts for:

            Interment Service (at need) and PIS

            Chapel Memorial Service (at need and PMS)

            we start paying VAT faithfully

5 SUMMARY OF NCR MONTHLY TARGETS:

                    LU       Panga     Clmb         Calp        Oton

Sale  (New) 472     930.7        923.2        192          450.8

Baseline       511  2,190        2,190           219          730

Past sale

Collection

Interment     220    330           330             30           166

TOTAL       1,203   3,450       3,443           441           1,346                                                                                    Total  9,883                                                                                                                                                                                   Annual:  108,773                                                                   vs 70M gross right now                                          

If our math serves us right, this should produce 5x sales for us for one year, making the 2% max incentive only 0.4% of sales

6.  Incentive rate:  

Below 95% - zero rated

95%  0.5      

100% 1.0

110%    1.5  

120%    1.75

130 %   2.00

Example:

1.   If La Union does 120% of  1,203.000  or P1,443.60 then LUMP gets 1.75% of the 1,443t for the month, or P25,252 and assuming that the same performance is maintained, for the next two months x 3.   = 75,757.

Distribution:       75,757   x 25% =  P18,939

Balance:           56,817/ 5 =    11, 363

2.  If Panga does 130%  of P3,430.000 = P4,459,000, they will get 2% of the NCR as incentive =  89.180.   Assuming you maintain this for the next 2 months = P267,540.

    Chief  x 25%    =   P66,885

    Potential to earn 1/4 million in a year

    Others   =   200,655 /9   =  P22,295 @



                

Are these numbers motivating or worth ignoring only?  Dont we desire more income?

Distribution:  25% to CMO chief, all others including GT, and GC, to be distributed equally

If there is existing incentive to CMO, the incentive ORC shall be reduced to 0.5% and then this scheme and distribution method

Source:    ME for memorial park,  ME for PMS and PIS (from fund distribution) or GAI

Procedure for payment of incentives:

Who

When

How:

       1.  Supporting docs

       2.  Audit

6.  Basis/breakdown of over all annual target:

                                                                                                 MONTHLY (11 months to sell only)

    

                    #         SP             Amount      #               Amount

Plots          2,000    40t       120,000    272                10,909,000

PIS            2,000    22t          44,000    181                  3,982,000

PMS          1,000     40t        40,000      91                  3,640, 000

                                                Total   544                  18,531,000   

                                                                                    x11                                                                                                203,841,000

Breakdown of sales: (units)   ?month

          Lump    Panga    Calmb       Calap     Oton  
         

Plots     40        100           100           30            40

PMS     10          30         25               10             15

PIS        31          50         50               20             30    

Total      81        180              175                      60                   85

Breakdown   Annual    Number of Units

              L          Panga   Calam          Calap        Oton

Plots      440       1,100    1,110               330            440

PMS       110         330       275            110                165

PIS         341         550       550             220               330

Total      897        1.980    1,925          660               935                                                                                           GT  6,397     

Assumptions:

Of the amount # of sales

10% are spot cash (the discounts are not made on plot sales)

10% are with DP (say 20% dp)

The balance are with 60 mos to pay, no dp  

Possible results to the SBU/CMO

1.  Since we have products and have matured over the years, we are more confident that we can sell and achieve the targets

2.  The NCR looks smaller than the previous year performance, and look achievable

3.   As we look at the annual target sales, we become more conscious of our power to achieve, as we get past the 100 million sales, not merely survive but thrive and possibly dominate.

4. We become more motivated on our own to:

    1.  Master our product knowledge

     2.  Master selling and management and leadership

     3. Recruit, train and motivate sellers more meeting, calls and visits to the sellers

5.  We focus on the priorities and things that are aligned and related to selling that are positive and joyfuland tend to ignore the petty trivia

l and negative

7. For submission and preparation prior to 3ffb meeting

     1.  Strengths     and Weakness Analysis  (internal)

                                         Strengths:                      Weakness (describe each)

              1.   Park

                   Beautification

                   Landscaping

                   Maintenance

                    Facilities

                2.  Management

                    Leadership

                     System

                     Efficiency

                    Sales

                   Staff Management

                   Communications

                   Hiring

                   Quality

             3.  Service

                 Interment

                 Docs

                Complaints

             4.  Quality

                 TPM

                 5s

                 Waste

                 Ease of

                reimbursement

                requests to 3ffb

                teamwork/harmonization

                5. Innovation

               support of new products

               projects at site

               events

               6   Sales

                Recruitment

                Training

                Motivation

                Com

                Prizes

               Sales meeting

               Promo items

               Ads

               Social media

New products

              Zinnia and daffodil

              BC for rent

                                                   Opportunities                      Threats

              Competition

              SSS increase up to 40 funeral benefits

              More inquiries on PIS

              Chapel Memorial Service at Calamba and Panga

             Cheaper and rising demand on Crematorium

             70% of population are poor

Strategies:

         Choice of activities and resources to integrate the SWOT analysis ie lessen effect of weakness and threat, and increase force of strengths to seize the opportunities;   make it easier to achieve objectives and lessen resistance.

       A good strategy must possess the following characteristics to be adopted:

      1. Low budget;
      2.  Ease of implementation
      3.  Relative impact
      4.   Availability 

Action plans:

        Functional  (change, improvement on various functions)

          What, timeline, who,    budget,   outputs  (what are landmarks)    and outcome in terms of sales/NCR

       1.   Marketing

       2.  Accounting and finance

       3.  HR

       4.  Operations (interment, and park maintenance and beautification

       5.  Special projects (PDCA)  needed

   Pending:   Wifi, for all chapels MP      40 x 5              200,000

                     working functional CCTV  100 x 5            500,000

                                Security at Calapan and La Union

                                functional vehicles at Calapan

               irrigation system at La Uni                         1,100,000

              BC at Calapan, La Union and Pangasinan  batches of 40   560,000

                   Crematorium at Panga and Calamba (long overdue)    P14,000,000

                  CMS at La Union  (long overdue;   manana habit/complacency, negligence?)                     1,200,000
             

                   Bangin Development at Calamba   110,000t                                       yearly budget                          22,000,000          

                  Religious shrine at Calamba         5,000,000

                    Other landscaping projects        500,000

                   Computer software (cloud)         500,000


                                                     Total    45,560,000/12  
                                                                    3,799,666/mo                                                                      

      or 

      Inputs:

     Manpower

     Methods

    Money

           Capex

           Opex

Throughputs (process/action plans

Outputs