For too long, sales comp teams have been forced into a frustrating trade-off: choose software that’s powerful enough to handle complex compensation logic, or one that’s easy for admins to actually use. Rarely both.
I wrote a white paper: How Component-Based Architecture Makes ICM Work, to show that this trade-off is no longer necessary. With component-based architecture, you get both the power to design a system that accurately represents your compensation nuances and the usability to create and maintain those plans in-house. No scripts. No black-box formulas. Just modular, intuitive building blocks you can use to design and update plans at scale.
The problem: Complexity is the norm—and legacy tools can’t keep up
The 2025 Incentive Compensation Trends Report makes it clear: complexity in compensation plan design is now the norm, especially for mid-sized and large organizations. Over 90% of companies report moderate to high complexity in their comp plans. Most support multiple payee types, varied crediting structures, layered incentive models, and pull data from several systems.
But many of these organizations are still trying to manage that complexity with outdated tools—or worse, patchwork solutions like spreadsheets layered on top of rigid legacy systems. That leads to long delays, high error rates, and low satisfaction. The research shows, companies using hybrid stacks struggle most, while those using dedicated ICM platforms see better outcomes in agility, accuracy, and admin productivity.
In short: complexity is here to stay. The way you calculate and pay incentive compensation needs to support that reality.
The answer: Component architecture
Just as platforms like Workday and ServiceNow have moved their industries from monoliths to microservices, incentive compensation is moving from dense configuration to composable logic.
Instead of writing formulas or managing rule trees, modular components are the way forward. Components are self-contained blocks that each handle a specific piece of logic such as calculating quota attainment, applying tiered rates, assigning credit splits, and managing clawbacks. These components can be configured in the UI, reused across plans, and combined in countless ways to reflect the unique shape of your comp strategy. Components are reusable across teams, geographies, and product lines, so they drive consistency, simplify testing, and reduce risk. When one element changes—say, a commission rate—it’s updated once and reflected everywhere it’s used.
This fundamental shift in ICM architecture enables powerful plan logic without adding the burden of impossible maintenance and circular logic. RevOps teams are able to fully control their system and maintain consistency, auditability, and speed—whether they’re managing 10 plans or 500.
The market agrees
I’m not the only one pointing to the advantages of this type of system architecture. In this year’s Forrester Wave™: Sales Performance Management Solutions For Incentive Compensation, Performio was recognized as a Strong Performer for enabling teams to “operationalize sophisticated compensation processes” through a workflow-driven, easy-to-use platform. Forrester highlighted the importance of both power and admin usability, exactly what component-based systems deliver.
Gartner’s 2025 Market Guide for SPM adds another layer: agility is now a must-have. Their advice? Remove unnecessary complexity, then choose a solution that can handle the necessary plan variables and payout mechanics without adding admin burden. That’s precisely what component-based architecture was built to do.
Performio is built for the way you work
Performio’s platform was designed from the ground up around this architecture. Our Plan Builder lets teams launch new plans, make changes mid-cycle, and scale across geographies and business lines—all without needing developers or vendor support.
We believe compensation systems should enable speed and accuracy, not become roadblocks. With the right architecture, you can adapt fast, avoid errors, and stay aligned with your go to market strategy.
Download the full white paper to learn how component architecture works in practice—and why it’s the foundation for scalable, no-compromise ICM.
Dmitri Korablev is a seasoned technology leader with over 25 years of global experience leading engineering and product teams across enterprise software, cloud, and data platforms. He has held senior roles at GE Digital, Datometry, and Informatica, driving innovation in IoT, AI, and scalable systems. At Performio, he leads the technology strategy, combining deep technical expertise with a customer-first approach to transform sales performance management.