OMG! You Were Right All Along!

untitled11Remember that time you spent weeks modeling a new incentive plan only to have it shot down? They explained that any goals needed to be based on RESULTS! You maintained that the reason interim goals were included, was to ensure that success could be achieved and communicated throughout the process.

Remember that other time you explained to your managers that they needed to have frequent conversations on the new pay for performance program? And, when it didn’t work they told you Continue reading

The Best Performance Goals Are D.U.M.B.

untitledAnyone who has taken a class or performed a Google-search on performance goals has learned about the concept of “SMART” goals. The most common breakdown seems to be: S – Specific, M – Measureable, A – Attainable, R – Relevant, and T – Time-bound. We all seem to know this and yet many still seem to have problems creating successful pay for performance programs. I would like to propose a new D.U.M.B. approach that celebrates the spirit of insanity.  Insanity is being defined as the repetition of doing the same thing, again and again, with the expectation of different results. If SMART goals aren’t working for you, why not try DUMB goals?

D.U.M.B Goals are: Continue reading

Develop Grow Achieve – 3 Tiers for P4P

stockPay for performance continues to rise. However, the failure of pay for performance is rising almost as fast. As the discussion about best practices continues, I thought I would provide a few thoughts about an approach that may work for your employees.

Usually the drive for pay for performance comes from the top of the company. “We need to have people be more productive.” “I don’t want to have to pay people that much, unless they are REALLY doing a great job.” While these are valid concerns, we must Continue reading

Equity Compensation – Performance Earned Units (PEUs), The First Ingredient in a P4P Stew

Stickman - Equity Comp-PEUAll too often the myriad types of truly performance-based equity get muddled together into a stew. Like other great equity compensation ingredients (RSS, RSU, ISO, NQSO) each type of performance equity should first be tried as an independent ingredient before being thrown into your LTI pot and hoping for the best. Performance Earned Units (PEUs) are a fairly pure form of Pay for Performance (P4P), so I figure we should start with them. Continue reading