Posts tagged as:

Business Processes

In a Recession: Recognize & Retain Your Star Performers, Part IV

July 10, 2009 · 0 comments by Terry Lauter Comp

in Benefits, Business Strategies, Economy, Feedback, Management, Performance Development, Uncategorized

reality-check-for-big-pharma-and-medicare-part-d Research tells us consistently that top performers outperform average team members by a ratio of at least 3 or 4 to one. If you take a moment to do the math, the implications are simply staggering. How could a prudent leader allow his or her super stars to languish among the troops at a time when we all need to elicit the very best performance ever to stimulate a turn-around? Clearly, it is important to make a strong connection between performance and rewards, now more than ever.

In the last few posts, we have been discussing the importance of keepingtop performers motivated, engaged, and excited about helping you to achieve your business goals. So far, we have talked about focusing on total rewards, not just cash compensation, and customizing the rewards to the employee’s personal needs and circumstances. We have also started to focus on how you can begin allocating a larger percentage of the merit pool to your top performers. Here’s another thought on managing incentive compensation:

As your business allows you to pay short-term incentives, provide those making the most significant contributions with the most attractive incentive pay. In other words, review your plan, and make sure that you are paying for performance.

The point here is that we often forget about incentive plan design, and simply “let the old plan ride”, rather than taking the time and effort to review and update the program. All too often, we see organizations that are rewarding employees for efforts that are actually contrary to the current needs and goals of the organization. There’s no better time than now to revise your incentive compensation plan to ensure you are getting a solid return on investment. In other words, make sure that you are driving the right efforts and activities, and giving the lion’s share of the incentive compensation to the team members who are delivering the most significant results. It may sound like a no-brainer, but when times are tough, it’s sometimes hard to prioritize reviewing plan docs and revising incentive structures. Even so, it is well worth the effort.

What do you think? Do you need to brush the cobwebs off of your incentive plan and offer up more cash for the top tier?

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“Getting Real” in Today’s Economy

June 24, 2009 · 0 comments by Terry Lauter Comp

in Business Strategies, Economy, Employee Communication, Management, Supervisory/Leadership Training

comm We’ve all seen the headlines, and heard the very real reports of salary freezes, forced time-off, and 401(k) matching “vacations”, not to mention lay-offs and closures. Clearly, many companies and their employees have been significantly impacted by this current recession. While we are beginning to see light at the end of the tunnel, experts say that we can still expect some months before the employment picture improves significantly. Still, there is no better time than NOW to start thinking about lessons learned this time around, and how we can be better positioned for economic downturns in the future.

What have we learned? One lesson that comes quickly to mind is that most organizations have simply not prioritized educating their employees about the financial realities of their business and their compensation and benefits costs. Organizational leaders may have any number of compelling reasons for this omission, but the truth is that they are all excuses. Sacrificing the urgent for the important usually catches up with us, and catch up it has.

So… better late than never! Here are a few things you can do in 2009 to start turning the tide. A well-informed workforce is not only important because people will be less apt to complain, it is essential because these are the people who will provide the engine for your turn-around. In this era of reality-entertainment driven by a hunger for authenticity, it’s time to get real. Take the time to clearly and honestly communicate:

Your short-term financial goals for the business
The specific things individuals in different roles can do to drive goal achievement
Where you have made significant cuts in expenses, and why
Why you are continuing to invest in people via your compensation plan, and how much money you spend in that plan annually
Why you are continuing to fund Benefits, and how much you spend on those programs

These are just a few of the facts that employees definitely need to learn. Unfortunately, it wasn’t urgent until now. What else is more important than ever before? Take the time this year to “get real” with your team. It’s that important!

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Working Smart: Focusing on the Vital Few

May 22, 2009

We all see so much wasted time at work, that I am always amazed to hear that the U.S. is one of the most productive nations in the world. Busy-ness seems to be replacing effectiveness as people go to endless meetings and spend hours sending and receiving emails.
Every once in awhile, I have to remind [...]

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What is Your Unmatched Customer Value Proposition?

May 21, 2009

Have you noticed that it is getting harder and harder to compete in today’s marketplace? As customers demand and expect more, we must ensure that we offer an unmatched value proposition to our target customers. In the book, “The Discipline of Market Leaders,” the authors explain that there are 3 key value proposition models and [...]

Simplify Your Mission, Vision and Values

May 20, 2009

A large number of companies develop their mission, vision and values as part of their organization’s strategic planning efforts. Unfortunately, many of them fail to achieve a solid return for their efforts. Three reasons for this are: (1) they are unclear about the difference between mission and vision; (2) they fail to engage their employees [...]

Getting Everyone on the Same Page

May 15, 2009

Over the years I have noticed that most companies do a pretty ineffective job of strategic planning. We all know how important strategic planning is to the long-term viability of an organization, but what’s really going on here? Well, many organizations never seem to get around to tackling this critical function. Others take a handful [...]

Peter Drucker Nailed It!

May 13, 2009

Several years ago, I had the privilege of hearing Peter Drucker, the “Father of Modern Management,” speak. At the time, he was already very old and nearly deaf, and didn’t seem to realize he was almost speaking in a whisper. The audience, however, was in total awe…and you could have heard a pin drop. I’ve [...]

Unlearning Lots in A Brave New World

May 11, 2009

You could easily accuse me of being a bit “over the top” about lifelong learning. I practically live for new books, new ideas, stories and concepts that I’ve never been exposed to before. Truly, I belong to the “cradle to grave” school of philosophy about the importance of continuously taking your education to a new [...]

Be a Value Builder

May 8, 2009

Several years ago, I was reviewing some Audio Tech Book Summaries and learned that organizations tend to fall into 4 operating profiles. These profiles are largely influenced by the Chief Executive.
The first profile is Underperformer and this is the worst. In this case, the organization lacks adequate focus on revenue growth or cost savings.
The second [...]

Key Business Strategies to Fuel Your Growth

May 6, 2009

Some organizations seem to operate without a business strategy, while others have way too many. We have guided many of our clients to focus on a half dozen, specifically:

Focus on profitable growth. Seems pretty basic, but it’s amazing how many companies experience declining profits, while their businesses are actually growing!
Start with the market and work [...]

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Business Processes

In a Recession: Recognize & Retain Your Star Performers, Part IV

What is Your Unmatched Customer Value Proposition?

Simplify Your Mission, Vision and Values

Peter Drucker Nailed It!

Unlearning Lots in A Brave New World

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