SkillHuman Resources
candidate-kb
Manage candidate knowledge base. Use when ingesting CVs, adding profile information, or querying candidate details for resume/cover letter generation.
◈OpenClaw
By ewurchOriginal project
MIT · FreeView skill
Installable skillMIT
Commission Intelligence
Explain sales commission calculations, resolve discrepancies, and model compensation scenarios for quota planning
instructions.md
--- name: commission-intelligence description: Explain sales commission calculations, resolve discrepancies, and model compensation scenarios for quota planning license: MIT metadata: author: ClawFu version: 1.0.0 mcp-server: "@clawfu/mcp-skills" --- # Commission Intelligence > Demystify sales compensation by explaining commission calculations, identifying discrepancies, and modeling payout scenarios. ## When to Use This Skill - Reps questioning commission statements - Designing or updating comp plans - Modeling quota and OTE scenarios - Resolving payout disputes - Planning territory changes ## Methodology Foundation Based on **Alexander Group Sales Compensation Design** and **WorldatWork Incentive Compensation principles**, covering: - Base + variable structures - Quota attainment mechanics - Accelerators and decelerators - Split and overlay rules ## What Claude Does vs What You Decide | Claude Does | You Decide | |-------------|------------| | Explains calculation logic | Final payout approvals | | Identifies discrepancies | Exception handling | | Models scenarios | Plan design choices | | Documents rules clearly | Policy changes | | Calculates examples | Quota assignments | ## What This Skill Does 1. **Calculation explanation** - Break down how commission was computed 2. **Discrepancy identification** - Find calculation errors or data issues 3. **Scenario modeling** - Project earnings under different assumptions 4. **Plan documentation** - Clarify complex comp plan rules 5. **Dispute resolution** - Provide clear audit trail ## How to Use ``` Explain this commission calculation: Rep: [Name] Role: [AE, SDR, etc.] Quota: $[Amount]/[Period] Closed this period: $[Amount] Comp plan rules: - Base: $X - OTE: $X - Variable: X% of base - Commission rate: X% up to quota - Accelerator: X% above quota Deals closed: - [List deals with amounts and close dates] Statement shows: $[Commission Amount] Rep expected: $[Expected Amount] ``` ## Instructions ### Step 1: Understand the Comp Plan Structure **Common Structures:** | Type | Description | |------|-------------| | Revenue Commission | % of deal value | | Quota-Based | % payout based on attainment | | Tiered | Different rates at different levels | | Draw | Advance against future commissions | | MBO | Bonus for specific objectives | ### Step 2: Calculate Attainment ``` Attainment % = (Closed Revenue / Quota) × 100 Example: - Quota: $500,000 - Closed: $450,000 - Attainment: 90% ``` ### Step 3: Apply Commission Rules **Standard Calculation:** ``` Base Commission = Closed Revenue × Commission Rate With Quota Thresholds: - Below 50% attainment: 0% payout (common) - 50-100% attainment: Linear payout - Above 100%: Accelerator rate kicks in ``` **Accelerator Example:** ``` Plan: 10% up to quota, 15% above quota Quota: $500K, Closed: $600K Commission: - First $500K × 10% = $50,000 - Next $100K × 15% = $15,000 - Total: $65,000 ``` ### Step 4: Handle Special Cases | Scenario | Rule | |----------|------| | Split deals | Divide credit per agreement | | Multi-year | Recognize per year or upfront | | Churn/Clawback | Deduct if customer cancels | | Ramped quota | Reduced quota for new hires | | SPIFs | One-time bonus amounts | ### Step 5: Reconcile Discrepancies **Common Issues:** | Issue | Cause | Resolution | |-------|-------|------------| | Missing deal | Not in CRM | Add deal, recalculate | | Wrong amount | Incorrect ACV | Verify contract value | | Wrong rate | Tier confusion | Check attainment level | | Split error | Credit allocation | Review split agreement | | Timing | Revenue recognition | Check close date vs. pay period | ## Examples ### Example 1: Commission Explanation **Input:** ``` Explain why Sarah's commission is $12,500: Rep: Sarah (AE) Quota: $200,000/quarter Q4 Closed: $175,000 Comp plan: - OTE: $200,000 (50/50 split) - Variable: $100,000/year = $25,000/quarter - At 100% attainment: Full $25K variable - Linear payout from 50-100% - Accelerator: 1.5x above 100% Deals: - Acme Corp: $80,000 (Oct 15) - Beta Inc: $45,000 (Nov 3) - Gamma LLC: $50,000 (Dec 20) Total: $175,000 ``` **Output:** ``` ## Commission Breakdown: Sarah - Q4 ### Step 1: Verify Closed Revenue | Deal | Amount | Close Date | ✓ | |------|--------|------------|---| | Acme Corp | $80,000 | Oct 15 | ✓ Q4 | | Beta Inc | $45,000 | Nov 3 | ✓ Q4 | | Gamma LLC | $50,000 | Dec 20 | ✓ Q4 | | **Total** | **$175,000** | | ✓ | ### Step 2: Calculate Attainment ``` Attainment = $175,000 / $200,000 = 87.5% ``` ### Step 3: Apply Commission Formula **Plan Rules:** - 50% threshold: Below 50% = $0 - 50-100%: Linear from $0 to $25,000 - 100%+: 1.5x accelerator **Calculation:** ``` Sarah is at 87.5% (between 50% and 100%) Linear formula: Payout = (Attainment - 50%) / 50% × Full Variable Payout = (87.5% - 50%) / 50% × $25,000 Payout = 37.5% / 50% × $25,000 Payout = 75% × $25,000 Payout = $18,750 ``` ### ⚠️ Discrepancy Found! **Statement shows**: $12,500 **Calculated**: $18,750 **Difference**: $6,250 underpaid ### Likely Cause If system shows $12,500, it may be calculating: ``` $12,500 / $25,000 = 50% payout ``` This would happen if: 1. One deal not credited (Beta Inc $45K?) 2. Wrong formula (% of revenue vs % of variable) 3. Deal attributed to different quarter ### Recommended Action 1. Verify all 3 deals in commission system 2. Check if Beta Inc close date is in Q4 3. Confirm formula is linear 50-100%, not flat rate 4. Escalate to compensation admin with this breakdown ``` ### Example 2: Scenario Modeling **Input:** ``` Model commission scenarios for Mike: Current: - Quota: $400,000/quarter - OTE: $240,000 (60/40 split) - Variable: $96,000/year = $24,000/quarter - Rate: 6% of revenue up to quota - Accelerator: 9% above quota Q1 pipeline: - Committed: $320,000 - Best case: $450,000 - Upside: $600,000 What would Mike earn in each scenario? ``` **Output:** ``` ## Commission Scenarios: Mike - Q1 ### Plan Summary - Quota: $400,000 - At-quota commission: $24,000 (6% × $400K) - Accelerator: 9% above quota ### Scenario Analysis #### Scenario 1: Commit Only ($320K) ``` Attainment: 80% Revenue: $320,000 Commission at 6%: $320,000 × 6% = $19,200 Quarterly Variable: $19,200 Annualized: $76,800 vs OTE Variable ($96K): -$19,200 ``` **Status**: Below quota, standard rate applies --- #### Scenario 2: Best Case ($450K) ``` Attainment: 112.5% Revenue: $450,000 Below quota: $400,000 × 6% = $24,000 Above quota: $50,000 × 9% = $4,500 Total Commission: $28,500 Quarterly Variable: $28,500 vs At-Quota ($24K): +$4,500 (19% bonus) ``` **Status**: Accelerator kicks in, strong quarter --- #### Scenario 3: Upside ($600K) ``` Attainment: 150% Revenue: $600,000 Below quota: $400,000 × 6% = $24,000 Above quota: $200,000 × 9% = $18,000 Total Commission: $42,000 Quarterly Variable: $42,000 vs At-Quota ($24K): +$18,000 (75% bonus) ``` **Status**: Excellent quarter, maximizing accelerator --- ### Summary Table | Scenario | Revenue | Attainment | Commission | vs Plan | |----------|---------|------------|------------|---------| | Commit | $320K | 80% | $19,200 | -$4,800 | | Best Case | $450K | 112% | $28,500 | +$4,500 | | Upside | $600K | 150% | $42,000 | +$18,000 | ### Key Insights 1. **Break-even point**: $400K (100% attainment) 2. **Accelerator value**: Each $10K above quota = $900 extra 3. **Commit gap**: Need $80K more to hit quota 4. **Upside potential**: 75% more commission if pipeline converts ### Recommendations for Mike 1. Focus on moving $80K from Best Case to Commit 2. Push for upside deals - 9% rate is lucrative 3. Prioritize larger deals for accelerator impact ``` ## Skill Boundaries ### What This Skill Does Well - Explaining commission math step-by-step - Identifying calculation discrepancies - Modeling what-if scenarios - Documenting plan rules clearly ### What This Skill Cannot Do - Access actual payout systems - Make policy exceptions - Override approved calculations - Handle edge cases without rules ### When to Escalate to Human - Policy exceptions or special approvals - Historical adjustments requiring audit - Plan design decisions - Legal or HR compensation issues ## Iteration Guide ### Follow-up Prompts - "What if Mike closes an extra $50K deal?" - "Show me the break-even point to hit OTE." - "Compare this plan to a flat 8% rate." - "Model the impact of increasing Mike's quota by 20%." ### Refinement Cycle 1. Document plan rules clearly 2. Run sample calculations 3. Verify against actual statements 4. Build exception handling guide 5. Create rep-facing FAQ ## Checklists & Templates ### Commission Dispute Resolution Checklist - [ ] Verify all deals in calculation - [ ] Confirm close dates in pay period - [ ] Check split/overlay credits - [ ] Validate attainment tier - [ ] Review for clawbacks/adjustments - [ ] Compare to plan document ### Comp Plan Documentation Template ```markdown ## [Role] Compensation Plan - [Year] ### Structure - Base Salary: $X - OTE: $X - Variable: $X (X% of OTE) - Pay Period: [Monthly/Quarterly] ### Commission Mechanics - Quota: $X/[period] - Base Rate: X% - Accelerator: X% above quota - Threshold: X% minimum attainment ### Special Rules - Splits: [Policy] - Clawbacks: [Policy] - Ramping: [New hire policy] ### Examples [Include 3 scenarios at 80%, 100%, 120%] ``` ## References - Alexander Group Sales Compensation Design - WorldatWork Incentive Compensation Handbook - Salesforce Sales Cloud Commission Documentation - Xactly Commission Best Practices ## Related Skills - `pipeline-forecasting` - Project commission from forecast - `deal-risk-scoring` - Prioritize high-commission deals - `quota-planning` - Set achievable targets ## Skill Metadata - **Domain**: RevOps - **Complexity**: Advanced - **Mode**: centaur - **Time to Value**: 15-30 min per analysis - **Prerequisites**: Comp plan document, deal data--- name: commission-intelligence description: Explain sales commission calculations, resolve discrepancies, and model compensation scenarios for quota planning license: MIT metadata: author: ClawFu version: 1.0.0 mcp-server: "@clawfu/mcp-skills" --- # Commission Intelligence > Demystify sales compensation by explaining commission calculations, identifying discrepancies, and modeling payout scenarios. ## When to Use This Skill - Reps questioning commission statements - Designing or updating comp plans - Modeling quota and OTE scenarios - Resolving payout disputes - Planning territory changes ## Methodology Foundation Based on **Alexander Group Sales Compensation Design** and **WorldatWork Incentive Compensation principles**, covering: - Base + variable structures - Quota attainment mechanics - Accelerators and decelerators - Split and overlay rules ## What Claude Does vs What You Decide | Claude Does | You Decide | |-------------|------------| | Explains calculation logic | Final payout approvals | | Identifies discrepancies | Exception handling | | Models scenarios | Plan design choices | | Documents rules clearly | Policy changes | | Calculates examples | Quota assignments | ## What This Skill Does 1. **Calculation explanation** - Break down how commission was computed 2. **Discrepancy identification** - Find calculation errors or data issues 3. **Scenario modeling** - Project earnings under different assumptions 4. **Plan documentation** - Clarify complex comp plan rules 5. **Dispute resolution** - Provide clear audit trail ## How to Use ``` Explain this commission calculation: Rep: [Name] Role: [AE, SDR, etc.] Quota: $[Amount]/[Period] Closed this period: $[Amount] Comp plan rules: - Base: $X - OTE: $X - Variable: X% of base - Commission rate: X% up to quota - Accelerator: X% above quota Deals closed: - [List deals with amounts and close dates] Statement shows: $[Commission Amount] Rep expected: $[Expected Amount] ``` ## Instructions ### Step 1: Understand the Comp Plan Structure **Common Structures:** | Type | Description | |------|-------------| | Revenue Commission | % of deal value | | Quota-Based | % payout based on attainment | | Tiered | Different rates at different levels | | Draw | Advance against future commissions | | MBO | Bonus for specific objectives | ### Step 2: Calculate Attainment ``` Attainment % = (Closed Revenue / Quota) × 100 Example: - Quota: $500,000 - Closed: $450,000 - Attainment: 90% ``` ### Step 3: Apply Commission Rules **Standard Calculation:** ``` Base Commission = Closed Revenue × Commission Rate With Quota Thresholds: - Below 50% attainment: 0% payout (common) - 50-100% attainment: Linear payout - Above 100%: Accelerator rate kicks in ``` **Accelerator Example:** ``` Plan: 10% up to quota, 15% above quota Quota: $500K, Closed: $600K Commission: - First $500K × 10% = $50,000 - Next $100K × 15% = $15,000 - Total: $65,000 ``` ### Step 4: Handle Special Cases | Scenario | Rule | |----------|------| | Split deals | Divide credit per agreement | | Multi-year | Recognize per year or upfront | | Churn/Clawback | Deduct if customer cancels | | Ramped quota | Reduced quota for new hires | | SPIFs | One-time bonus amounts | ### Step 5: Reconcile Discrepancies **Common Issues:** | Issue | Cause | Resolution | |-------|-------|------------| | Missing deal | Not in CRM | Add deal, recalculate | | Wrong amount | Incorrect ACV | Verify contract value | | Wrong rate | Tier confusion | Check attainment level | | Split error | Credit allocation | Review split agreement | | Timing | Revenue recognition | Check close date vs. pay period | ## Examples ### Example 1: Commission Explanation **Input:** ``` Explain why Sarah's commission is $12,500: Rep: Sarah (AE) Quota: $200,000/quarter Q4 Closed: $175,000 Comp plan: - OTE: $200,000 (50/50 split) - Variable: $100,000/year = $25,000/quarter - At 100% attainment: Full $25K variable - Linear payout from 50-100% - Accelerator: 1.5x above 100% Deals: - Acme Corp: $80,000 (Oct 15) - Beta Inc: $45,000 (Nov 3) - Gamma LLC: $50,000 (Dec 20) Total: $175,000 ``` **Output:** ``` ## Commission Breakdown: Sarah - Q4 ### Step 1: Verify Closed Revenue | Deal | Amount | Close Date | ✓ | |------|--------|------------|---| | Acme Corp | $80,000 | Oct 15 | ✓ Q4 | | Beta Inc | $45,000 | Nov 3 | ✓ Q4 | | Gamma LLC | $50,000 | Dec 20 | ✓ Q4 | | **Total** | **$175,000** | | ✓ | ### Step 2: Calculate Attainment ``` Attainment = $175,000 / $200,000 = 87.5% ``` ### Step 3: Apply Commission Formula **Plan Rules:** - 50% threshold: Below 50% = $0 - 50-100%: Linear from $0 to $25,000 - 100%+: 1.5x accelerator **Calculation:** ``` Sarah is at 87.5% (between 50% and 100%) Linear formula: Payout = (Attainment - 50%) / 50% × Full Variable Payout = (87.5% - 50%) / 50% × $25,000 Payout = 37.5% / 50% × $25,000 Payout = 75% × $25,000 Payout = $18,750 ``` ### ⚠️ Discrepancy Found! **Statement shows**: $12,500 **Calculated**: $18,750 **Difference**: $6,250 underpaid ### Likely Cause If system shows $12,500, it may be calculating: ``` $12,500 / $25,000 = 50% payout ``` This would happen if: 1. One deal not credited (Beta Inc $45K?) 2. Wrong formula (% of revenue vs % of variable) 3. Deal attributed to different quarter ### Recommended Action 1. Verify all 3 deals in commission system 2. Check if Beta Inc close date is in Q4 3. Confirm formula is linear 50-100%, not flat rate 4. Escalate to compensation admin with this breakdown ``` ### Example 2: Scenario Modeling **Input:** ``` Model commission scenarios for Mike: Current: - Quota: $400,000/quarter - OTE: $240,000 (60/40 split) - Variable: $96,000/year = $24,000/quarter - Rate: 6% of revenue up to quota - Accelerator: 9% above quota Q1 pipeline: - Committed: $320,000 - Best case: $450,000 - Upside: $600,000 What would Mike earn in each scenario? ``` **Output:** ``` ## Commission Scenarios: Mike - Q1 ### Plan Summary - Quota: $400,000 - At-quota commission: $24,000 (6% × $400K) - Accelerator: 9% above quota ### Scenario Analysis #### Scenario 1: Commit Only ($320K) ``` Attainment: 80% Revenue: $320,000 Commission at 6%: $320,000 × 6% = $19,200 Quarterly Variable: $19,200 Annualized: $76,800 vs OTE Variable ($96K): -$19,200 ``` **Status**: Below quota, standard rate applies --- #### Scenario 2: Best Case ($450K) ``` Attainment: 112.5% Revenue: $450,000 Below quota: $400,000 × 6% = $24,000 Above quota: $50,000 × 9% = $4,500 Total Commission: $28,500 Quarterly Variable: $28,500 vs At-Quota ($24K): +$4,500 (19% bonus) ``` **Status**: Accelerator kicks in, strong quarter --- #### Scenario 3: Upside ($600K) ``` Attainment: 150% Revenue: $600,000 Below quota: $400,000 × 6% = $24,000 Above quota: $200,000 × 9% = $18,000 Total Commission: $42,000 Quarterly Variable: $42,000 vs At-Quota ($24K): +$18,000 (75% bonus) ``` **Status**: Excellent quarter, maximizing accelerator --- ### Summary Table | Scenario | Revenue | Attainment | Commission | vs Plan | |----------|---------|------------|------------|---------| | Commit | $320K | 80% | $19,200 | -$4,800 | | Best Case | $450K | 112% | $28,500 | +$4,500 | | Upside | $600K | 150% | $42,000 | +$18,000 | ### Key Insights 1. **Break-even point**: $400K (100% attainment) 2. **Accelerator value**: Each $10K above quota = $900 extra 3. **Commit gap**: Need $80K more to hit quota 4. **Upside potential**: 75% more commission if pipeline converts ### Recommendations for Mike 1. Focus on moving $80K from Best Case to Commit 2. Push for upside deals - 9% rate is lucrative 3. Prioritize larger deals for accelerator impact ``` ## Skill Boundaries ### What This Skill Does Well - Explaining commission math step-by-step - Identifying calculation discrepancies - Modeling what-if scenarios - Documenting plan rules clearly ### What This Skill Cannot Do - Access actual payout systems - Make policy exceptions - Override approved calculations - Handle edge cases without rules ### When to Escalate to Human - Policy exceptions or special approvals - Historical adjustments requiring audit - Plan design decisions - Legal or HR compensation issues ## Iteration Guide ### Follow-up Prompts - "What if Mike closes an extra $50K deal?" - "Show me the break-even point to hit OTE." - "Compare this plan to a flat 8% rate." - "Model the impact of increasing Mike's quota by 20%." ### Refinement Cycle 1. Document plan rules clearly 2. Run sample calculations 3. Verify against actual statements 4. Build exception handling guide 5. Create rep-facing FAQ ## Checklists & Templates ### Commission Dispute Resolution Checklist - [ ] Verify all deals in calculation - [ ] Confirm close dates in pay period - [ ] Check split/overlay credits - [ ] Validate attainment tier - [ ] Review for clawbacks/adjustments - [ ] Compare to plan document ### Comp Plan Documentation Template ```markdown ## [Role] Compensation Plan - [Year] ### Structure - Base Salary: $X - OTE: $X - Variable: $X (X% of OTE) - Pay Period: [Monthly/Quarterly] ### Commission Mechanics - Quota: $X/[period] - Base Rate: X% - Accelerator: X% above quota - Threshold: X% minimum attainment ### Special Rules - Splits: [Policy] - Clawbacks: [Policy] - Ramping: [New hire policy] ### Examples [Include 3 scenarios at 80%, 100%, 120%] ``` ## References - Alexander Group Sales Compensation Design - WorldatWork Incentive Compensation Handbook - Salesforce Sales Cloud Commission Documentation - Xactly Commission Best Practices ## Related Skills - `pipeline-forecasting` - Project commission from forecast - `deal-risk-scoring` - Prioritize high-commission deals - `quota-planning` - Set achievable targets ## Skill Metadata - **Domain**: RevOps - **Complexity**: Advanced - **Mode**: centaur - **Time to Value**: 15-30 min per analysis - **Prerequisites**: Comp plan document, deal data
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