Have a question? Connect with an Argano expert!
A subject matter expert will reach out to you within 24 hours.
Advanced Automation and Sales Performance Management Drives 35% Cost Reduction
Abigail JacksonQVC Administration Manager, OptumThe time savings alone allows my team to be able to do more plans and help more people. Instead of wasting two days looking at one plan's data, we can look at all of our plans in a day, thanks to the automation.
1
The Challenge
Optum, a subsidiary of UnitedHealth Group, faced significant challenges in managing highly complex and unique incentive compensation for more than 17,000 employees across its partner organizations. Their existing system was not only outdated but also lacked automation and reporting capabilities, making it increasingly difficult to manage the scale and complexity of their programs. Each compensation plan required extensive manual input, making it highly susceptible to errors and inefficiencies. As the number of participants and the complexity of calculations grew, the legacy system struggled to keep up, creating bottlenecks that hindered timely and accurate compensation distribution. This scenario posed a massive administrative burden as well as a high potential for discrepancies in compensation payments, adversely affecting employee satisfaction and operational efficiency.
2
The Solution
To address these challenges, Optum partnered with Argano to modernize their sales performance management (SPM) solutions. Argano designed a tailored solution leveraging Varicent, which introduced advanced automation and user-friendly interfaces. Aligning closely with Optum’s SPM strategy, Argano’s consulting experts developed a comprehensive strategy and project plan that streamlined the implementation process.
By automating the data ingestion and validation processes, the improved SPM solution significantly reduced the need for manual input and the associated risk of discrepancies in compensation payments. Varicent's capacity to manage complex calculations and large-scale participant expansions efficiently addressed Optum's needs. This solution not only eliminated errors but also enhanced operational efficiency, allowing Optum to manage compensation more effectively and improve employee satisfaction through more accurate and timely payments.
3
The Results
Automated and enhanced SPM functionality has saved the team more than two days of work per plan each month, allowing them to review all plans in a single day. This efficiency gain translates into more effective support and the ability to manage more plans, thereby benefiting a larger number of employees.
The automation capabilities have also enabled differentiation between various employee and partner populations, ensuring that metrics and awards are accurately applied. With this specificity, Optum has corrected previous issues with award payments and significantly reduced the manual effort required in data management and validation.
Moreover, the project achieved a 35% reduction in the cost per plan participant, not only underscoring the financial benefits of the solution but also reflecting the streamlined processes now in place.
Overall, these enhancements have improved operational efficiency and positioned the Quarterly Variable Compensation (QVC) team to provide higher-value support and perform more in-depth statistical analysis. Such a strategic advantage allows them to offer more insightful feedback to leadership and improve decision-making processes within the organization. In partnering with Argano, Optum has strengthened their ability to manage growth and scale operations effectively — transforming their high-performance operations as the baseline for success.