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?