Can we develop an incentive plan to drive superior performance?
You can be pretty sure that's the question someone was trying to address when your key incentive program was created.
At the time, the answer may have been yes.
The chances are that question has never been asked again.
If we believe in the power of incentives … and we want to stimulate superior performance … why do we rarely take time to examine the programs already in place to see if those programs are accomplishing their intended objective?
Incentive Plans are rarely updated
When you look under the hood of your own incentive programs, you're likely to find that incentive plans already in place aren’t working too well.
What started as a well-intended and robust incentive plan has now become a routine bonus program that participants expect to receive as a regular part of their income.
The plan doesn’t do anything to stimulate superior performance.
It only rewards consistent performance … even if it's mediocre.
If you just keep doing what you’re doing, you can pretty much expect to receive your “incentive” compensation … just like you did last year.
Learn from Apple’s Compensation Structure
When Sam Snead was asked how to putt, he said, “Putt for one hundred dollars.” ~ Bob Schieffer
While compensation is only one feature of a powerful incentive program, Apple, Inc. uses an incentive compensation structure embodies 5 important principles to drive superior performance.
The size and scope of Apple’s experience doesn't apply to everyone, but it reflects a series of very sound concepts and principles that will help you to consider an incentive plan for your company that really works.
Watch the Video and Review the Slides
I have created a brief video, combined with 12 slides, to describe these five important features of Apple’s incentive compensation plan.
Take a close look. The concepts behind their plan provide a solid structure for any plan.
It is simple but realistic and will guide you to a more powerful plan to drive superior results to set your company apart from the competition.
Share this with your Twitter followers to help them improve their incentive plans.
Question: Examine the most important incentive plan in your company. Is it working as intended or does it need to be “refreshed” so it achieves the goals you set?