Worked example
A team of 25 to 99 payees on a few plans, using a reviewed spreadsheet template, closing in 6 to 10 days with a few disputes each period: every answer scores 1 point.
| Input | Value |
|---|---|
| How many people receive variable pay? | 25 to 99 (1 pt) |
| How many distinct compensation plans are active? | 2 to 4 (1 pt) |
| How are commissions calculated today? | Spreadsheet template with a second-person review (1 pt) |
| How long does it take to close commissions for payroll each period? | 6 to 10 working days (1 pt) |
| How often do payouts need disputes or corrections? | Every period, a few (1 pt) |
| What audit or ASC 606 requirements apply to commissions? | Internal finance review only (1 pt) |
| Where does the deal and payroll data come from? | CRM exports pasted into spreadsheets (1 pt) |
| How are plan changes handled? | Yearly changes, documented in email or slides (1 pt) |
| Result | Value |
|---|---|
| ICM maturity score | 33.33% |
| Maturity level | Developing |
| Points (out of 24) | 8 |
| Suggested next step | Consider a lightweight commission tool, or harden your spreadsheet with CRM exports and a review step. |
- Payees: 25 to 99: 1
- Plans: 2 to 4: 1
- Calculation: Spreadsheet template with a second-person review: 1
- Close time: 6 to 10 working days: 1
- Disputes: Every period, a few: 1
- Audit: Internal finance review only: 1
- Data: CRM exports pasted into spreadsheets: 1
- Plan changes: Yearly changes, documented in email or slides: 1
- = Total points: 8
- Score: points ÷ 24: 33.33%
How the score is calculated
Points = sum of the eight answers (each 0, 1, 2 or 3)
Maturity score = points ÷ 24
Every option shows its points in the form, so nothing is hidden. Half of the questions describe your process (calculation, close time, disputes, data). The other half describe your scale and requirements (payees, plans, audit, plan changes): a larger, audited program needs more formal controls, so it sits higher on the scale.
- Ad hoc (0–6 points): commissions depend on one person and a spreadsheet rebuilt each period.
- Developing (7–12): a template and some review exist, but closing still takes days.
- Defined (13–18): documented plans, regular data feeds and few corrections.
- Optimized (19–24): automated calculation, integrated data, audit trails and versioned plans.
These cut-offs are our own product assumptions, set at quarters of the 24-point range. They are not market benchmarks, and we do not claim that a given share of companies sits at any level.
How the suggested next step is chosen
The next step ignores the maturity score. It reuses the vendor-neutral thresholds of the software check, applied to the lower bound of the bands you picked:
- 500 payees or more, or 250 or more with an external audit requirement: enterprise ICM.
- 100 payees or more, or 5 plans or more: mid-market ICM.
- 25 payees or more, 2 plans or more, or two complexity signals (frequent disputes and an audit requirement): a lightweight tool.
- Otherwise: a well-built spreadsheet is enough.
Complexity signals = audit requirement (external or SOX-style) + frequent disputes (every period)
A low score with a small team is not a problem to fix with software. If the next step does point to a tool, compare categories in our commission software rankings and check the numbers with the commission software ROI calculator.
Limitations
- Self-assessed answers: the result is only as accurate as your inputs.
- Bands are coarse; 26 payees and 99 payees get the same points.
- The assessment does not judge plan design quality — use the plan simulator for that.
Frequently asked questions
What is ICM maturity?
Incentive compensation management (ICM) maturity describes how formal, reliable and auditable your commission process is, from a spreadsheet rebuilt each month to an automated, integrated system with audit trails.
Is a low score bad?
Not necessarily. A small team with one plan can run accurately on a spreadsheet. The score shows where you are; the suggested next step, based on your scale, shows whether moving up is worth it.
Why does the number of payees add points?
Scale raises the bar: the more people and plans you pay, the more controls, data feeds and documentation you need for the same accuracy. The assessment treats that as part of maturity and says so openly.
Does this assessment recommend a vendor?
No. It suggests a category only — spreadsheet, lightweight tool, mid-market or enterprise ICM — using rules that never look at vendor names or commercial relationships.