DO MORE AND EARN MORE:
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)
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) LUMP Panga Calamba Calapan 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 1,500 3,500 2,500 500 1,500
NCR 511 2,190 2.190 219. 730
Interment 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.
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:
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 30 160
TOTAL 1,203 3,450 3,443 441 1,346 Total 9,883 Monthly
Annual: 108,773 vs our 60t gross annual collection 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 51,750 23,555
120 1.75
130 2.00 24,060 68,860 8,820
Payable quarterly 206,580 70,665
Are these numbers motivating or worth ignoring only? Dont we desire more income?
Are these numbers motivating or worth ignoring only? Dont we desire more income?
Distribution: 20% 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
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 x 11 =
203,841,000
Breakdown of sales: (units) month
Breakdown of sales: (units) month
Lump Panga Calamba Calapan Oton BPI HAMP
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)
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
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 Union 1,100,000
Irrigation system at La Union 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
1,200,000
Bangin Development at Calamba 22,000,000 /year 110,000,000
Religious shrine at Calamba 5,000,000
Other landscaping projects 500,000
P45,060,000/12 = 3,755/month
P45,060,000/12 = 3,755/month
or
Inputs:
Manpower
Methods
Money
Capex
Opex
Throughputs (process/action plans
Outputs
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