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?
