Helpful Xactly Best Practices

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Working with Xactly Hierarchy

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Overview: The Hierarchy Section within Xactly (Organization tab -> Hierarchy) allows the Administrator to set up reporting relationships. Depending on commission plans within your organization, most people in your sales organization would need to be entered into the hierarchy primarily for three reasons:

  • Allow direct reps (people who are actually closing deals) to pass credit up through the hierarchy to their Manager, Director, VP, etc. (Indirect Credit)
  • Allow reps access to the Incentive Statement – any person who is not in the hierarchy will not be able to view the Incentive Statement
  • Report in Analytics – any person who is not in the hierarchy would not come through into Analytics reports
    • As a workaround, I would recommend creating a “Terminated” branch within the hierarchy (as parent position), and add all your terminated reps to this branch of the hierarchy to clean up your hierarchy for the main view yet you would still be able to report on these people.

How it works: When you first enter your system you would already have a hierarchy set up for you by either Xactly Professional Services (New SetUp), or by the person Administrating the system in the past/currently. However, all hierarchies first start off effective “Start of Time – End of Time (SOT-EOT)”, which means all people within the hierarchy will remain reporting to their current manager unless someone makes any changes. For example, if person A reports to Manager B, A will remain reporting to B until the end of time or until, someone who is authorized to do so, changes this relationship.

As best practice, I would recommend adding a new version of the hierarchy (similar to Position Versioning concept) at least monthly to preserve historical reporting relationships, especially if you plan processing prior period adjustments. To use example above (SOT-EOT hierarchy), as of January 1st 2015 person A now reports to Manager C. To properly accommodate this change, you would first need to create a new version of the hierarchy effective January 1st 2015 and once  created change parent position of person A from Manager B to Manager C. Once completed, you should now have 2 hierarchy versions that look like this:

  • Start of Time – December 31st, 2014 version where person A reports to Manager B
  • January 1st, 2015 – End of Time version where person A now reports to Manager C

By versioning the hierarchy you now preserved the historical reporting relationship of person A so that if any orders are processed prior to January 1st, 2015 will roll up to Manager B, and any orders processed past January 1st, 2015 will roll up to Manager C. Depending on the size of your organization and frequency of changes you could version anywhere from daily to monthly or even annually if there are very few movements in the organization.

Adding New Version: To add a new version to your current hiearchy, navigate to Organization -> Hierarchy, click “Edit Hiearchy” (page should default to the latest hierarchy version). Once page loads click “Add Version” -> Enter Hierarchy Name (follow same naming convention as the prior version name) -> Enter Effective Date (any changes in the hierarchy will be effective as of this date) -> Click Save. Once saved you should see a new version of the hierarchy appear where you can now make changes

Hiearchy Version

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