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Colmobil Case Study


Colmobil, Israel’s Leading Automotive Dealercolmobil cars

Colmobil Corp. is Israel’s leading motor-vehicle importer and distributor representing brands like Mercedes Benz, Smart, Mitsubishi Motors and Hyundai Motors.  Additional services, such as maintenance contracts, financial & insurance services, and trade-in solutions, are provided by fully owned subsidiaries. In 2011, Colmobil commanded more than 18.2% of the Israeli car market and has become a benchmark for the Israeli automotive market.

The Pre-existing Situation

Colmobil believes in motivating its employees through performance based compensation plans. Out of its 1000 employees, Colmobil was compensating 700 employees based on their performance.

Implementing this policy in a company with such a high number of services, brands and target markets (private and commercial), caused them to cope with a large number of compensation models. Colmobil’s payees were facing a lack of clarity of sometimes irrelevant and complex compensation plans. The calculation was done manually, based on performance metrics reported by the team managers via emails. The finance department, understandably, faced difficulties in examining and auditing the performance KPI’s that formed the basis for the determining compensation. Furthermore, payees did not have any access to their performance or commission calculations.

The Need for Change

In 2007, Colmobil’s finance department hired the services of compensation experts to redesign their compensation models and adjust them to the current situation and complexity of the company. The objective was to simplify the compensation structure and bring clarity to the payees regarding their performance metrics.

One of the outcomes of the consulting phase was the clear need for a Sales Performance Management (SPM) solution. Colombil’s goals in implementing an automated SPM solution were to:

  • Increase transparency regarding compensation calculations and performance metrics between finance, team managers and team members
  • Gain the ability to continuously align compensation plans with Colmobil’s sales strategy
  • Provide audit ability of compensation plans and payments
  • Eliminate over-payments of compensation due to miscalculations

Project Scope and Criteria

In 2010, Colmobil, started evaluating a number of SPM solutions including leading SPM providers, internal development and more.  The selected solution had to accomplish the goals listed above and be innovative. Incentives Solutions was Colmobile’s preferred choice.

Rapid deployment, a satisfied customer base and the flexibility with which users can define and adjust compensation plans were amongst the reasons why Colmobil selected Incentives Solutions’ SPM tool, INCENTIVES-SPM.

Rapid Implementation

The project scope covered the entire sales and services network. The INCENTIVES-SPM V.9 system was interfaced with Colmobil’s ERP and CRM system. Colmobil’s payees’ portal was the natural gateway for payees to access performance and compensation data. All of the data gathered from the system provided a meaningful and powerful resource for various discoveries and improvement analyses for management decisions.

The sales branch managers were greatly involved in the specification of dashboards and the roll-out of the system which was then deployed within a few weeks.

Reaping the Rewards

Colmobil immediately experienced a substantial improvement, mainly in the following areas:

  • New compensations plans with maximum results were achieved by using the Incentives SPM Simulation Plan
  • Improving the motivation and engagement of the sales, thanks to the transparency and the timely availability of performance and incentives information
  • Timely coaching of the employees due to the real-time availability of their performance metrics in the dashboards of the team managers
  • Full transparency of the compensation calculations between finance and the employees.
  • Continuous fine-tuning and optimization of the compensation plans and their adjustments according to the compensation budget, company goals and market trends