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Shaw Industries Group Inc. Chooses Varicent for Variable Compensation Management and Planning
2000 payees will use solution to manage variable compensation
(Toronto, ON) – Varicent Software, an innovator and provider of sales performance management (SPM) solutions, today announced that Shaw Industries Group has chosen Varicent SPM to track variable pay for 2000 payees across its commercial and residential lines of business.
Shaw Industries Group Inc. is a $5 billion subsidiary of Berkshire Hathaway and is the world's largest manufacturer of tufted broadloom carpet. With its previous process, Shaw spent a significant amount of time, resources and costs to manage variable compensation. The company was also experiencing challenges in accommodating plan changes, new plans or any type of new pay structure because of an inability to compare scenarios and model strategies.
"We wanted a quick return on investment as well as the ability to position ourselves for business enablement so we can change with the market," says Roger Mathis, Corporate Sales Administration at Shaw. "With our semi-automated process, we're spending 14 days a month managing compensation. Our goals include reducing process costs, lessening dependency on IT resources, increasing the payee's understanding of compensation calculations, and eliminating errors and shadow accounting."
Shaw chose Varicent because it provides a comprehensive approach to incentive compensation, sales performance, quota management, and territory optimization. Expected business benefits for Shaw upon implementing Varicent SPM include:
- Eliminating security risks
- Minimizing legal exposure
- Increased efficiency
- Advanced Performance Analytics
- Minimized dependence on key personnel
- Improved modeling capabilities
- Improved links between incentive compensation and performance metrics
Beyond the business benefits, the relationship between the Varicent and Shaw teams was a key differentiator. "Varicent is more than another software vendor; they are business people with similar opportunities to ours," says Valerie Kilgore, Sales Administration Manager at Shaw. "They understand the importance of speaking our language and establishing strong connections at the executive level. As a result, we are creating a partnership where Varicent is helping us at both the transactional process and strategic levels."
Varicent is equally excited about the opportunities inherent in the partnership. "Having an industry leader like Shaw recognize the potential in Varicent SPM is very exciting," says Brian Hartlen, Vice President, Marketing at Varicent. "We look forward to the opportunity to help Shaw achieve sales effectiveness through improved compensation management."
Varicent, in cooperation with its partner Revelwood, is beginning the engagement immediately, with go-live anticipated in early 2009. Shaw will begin using Varicent's modeling capability right away to develop 2009 plans. The first phase of the project involves automating compensation management for the Commercial and Residential lines of business. Future phases are expected to include Performance Analytics and Mobility.
"The solution is more than a way to improve our transactional processes so we pay people correctly," says John Godwin, Executive VP Residential Sales and Marketing at Shaw. "It is a critical strategic tool that allows us to combine world class technology with the differentiated expertise of the Varicent team to enable our business in new and innovative ways."
About Varicent
Varicent Software Incorporated delivers the most innovative sales performance management solution addressing the needs of business professionals across the entire enterprise. High performing companies relying on Varicent for better visibility and control of their complex variable compensation programs, automating the assignment of territories, the collection and approval of quotas, and reporting and analyzing sales performance include Waste Management, KLA-Tencor, AAA, Sonus Networks, Manpower, American Century Investments, Smith & Nephew, Nexient Learning, and many others.
About Shaw
Shaw Industries Group Inc., a subsidiary of Berkshire Hathaway Inc., is the world's largest carpet manufacturer and a leading floor covering provider with more than $5 billion in annual sales and approximately 31,000 associates. Headquartered in Dalton, Ga., the company manufactures and distributes carpeting, rugs, hardwood, laminate and ceramic tile for residential and commercial applications worldwide. A recognized leader in environmental stewardship, Shaw has implemented hundreds of sustainability initiatives and cradle to cradle design solutions, collectively termed the Shaw Green Edge. For more information on Shaw, please visit http://www.shawfloors.com.
