Tuesday, April 22, 2008

Sales Compensation Planning Made Easy - Interview with Makana Solutions

I recently had the opportunity to spend an hour with Liz Cobb, Founder and CEO of Makana Solutions, and with Arthur Gehring, Director of Marketing.

Makana is a relatively new company (founded in 2004) offering a very good on-demand application, called Makana Motivator, which helps build effective and clear compensation plans. Makana Motivator is very easy to use and allows its users to quickly create a plan either based on other sample plans, or from the ground up. It also has the capability to “test” your plan.


As I mentioned several times, one of the biggest challenges faced by sales management or consultants when implementing a sales compensation system is the “complexity” of the compensation plans. Sometimes compensation plans are quickly described in a e-mail or over the phone, or almost handed over written on a napkin. In other scenarios, they are can be well documented but may still lack clarity, key aspects, or examples, or may be lengthy. Finally, even if a compensation plan is well documented, it does not mean that the plan is effective and well aligned with the objectives and budget of the company.

The Makana Motivator application is very intuitive to use. Companies using the application typically receive a 1-hour live tutorial from Makana, after which they are able to model plans on their own. The main components of the application consist of the space in which the plans are built, where the organization is built with assignments and territories (participants can be imported from SalesForce.com), a section for cost modeling the plans, and finally, a section that generates a plan and gives the option to save it as a PDF.


In my opinion, one of the most powerful aspects of Makana Motivator is that it allows users to choose templates from a best-practice library and to adapt them to meet individual circumstances. The application then guides the user following a “wizard” step-by-step approach to ensure nothing is overlooked. The application is very interactive; hovering over most of the application components provides additional feedback . “Blue-ribbon advice” offering expert tips and help is also available throughout the process.

Another important feature of this application is the ability to display and compare plans side by side. Such a graphical representation quickly helps identify the major differences between plans.


Plans are not only displayed side-by-side; they can also be designed and modified side-by-side. Plans consist of measures and formulas which can be edited by expanding their respective section.


The cost modeling section can show costs for the entire company or byany sub-set such as product group or geography. Projected attainment can be modified to gain an idea of the impact of those variables on the overall incentive costs. Many sales performance management applications offer modeling and analytics capabilities, but Makana Motivator allows its users to model the plans BEFORE they are implemented rather than after, which can save a lot of time, money and headaches.

Once the plans are fully designed, and since the application is on-demand; they can easily be circulated and feedback can be gathered directly in the application. Upon acceptance of the plans, plan documents can be individualized and generated. The resulting plans are very clear and easy to understand by consultants, comp teams and sales reps alike, and are visually pleasing.

Motivator adds a lot of value over the spreadsheets used for planning today by streamlining the process, providing best practice guidance, easy cost modeling, clear plans and an audit trail. Makana Motivator also provides Salesforce.com users Apexchange certified integration.

Read more about what customers have to say about Makana Motivator.

After completing a form on the Makana website, you can access several free webinars and articles about Makana Motivator and compensation plan design best practices.

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About Me

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Ottawa, Ontario, Canada
Julien Dionne is a well-rounded consultant with global business management experience and outstanding technical, business and leadership skills. He earned a Bachelor of Applied Science in Software Engineering from the University of Ottawa, Canada, and he is a member of the Canadian Professional Sales Association. The views posted within this blog do not reflect the views of Julien’s current or previous employers and clients. Julien can be reached at julien.dionne@gmail.com