Discussion Item – Incentive Program for Hourly Employees
Paul is looking to establish some type of incentive program in order to drive greater production and improvement in quality (though quality is strong now). After a briefing from Paul on the situation, we began the discussion by offering ideas and concepts to provide a master list of things Paul could consider.
- Explore providing incentives out of the increased margins derived from improved performance.
- Offer recognition as well as reward.
- Establish programs for advancement based on performance.
- Link incentives to profitability.
- Be specific on what you measure, and ensure employees understand and buy into the measurement criteria.
- Build a qualitative and quantitative work history for each employee.
- Focus on producers rather than sub-par performers.
- Establish a baseline of performance, and objectives related to that baseline.
- Set objectives at both the individual and team levels.
Working off this list, and using some of his own ideas, Paul selected the following ideas to pursue:
- Offer recognition as well as reward.
- Link incentives to profitability.
- Build a qualitative and quantitative work history for each employee.
- Focus on producers rather than sub-par performers.
We had time to explore implementation of one of the ideas: How to link incentives to profitability. Steps to consider in implementing this idea include:
- Identify a measurable factor
- Assign a responsible diagnostician
- Produce a history of results
- Take corrective action where needed
- Split the returns with personnel
Underlying these steps are the following principals:
- Conduct a financial analysis. Know what you are measuring.
- Ensure you get feedback. Make sure the diagnostician is skilled in measuring whatever factor you select.
- Instill the ability to self-direct. Empower your people to take their own corrective action, both as individuals and as a team.
- Evaluate and elevate staff. Recognize improvement. Reward performance.
- Focus on the top performers. Another application of the 80/20 rule, where you focus your efforts on personnel who produce the greatest return.
4 Great New Business Laptops
From Inc. Managing Technology May 11, 2011
Inc. tested four new notebooks with fast processors and loads of features. Their top pick is the Lenovo Thinkpad X220, followed closely by the Apple Macbook Pro, HP EliteBook 8460P Notebook PC, and the Dell Vostro 3350.
Unusual Thinking Styles Increase Creativity
From PsyBlog — May 3, 2011
The idea of creativity is wonderful: that a spark of inspiration can eventually bring something new and useful into the world: perhaps even something beautiful. Something, as it were, from nothing.
That spark may be only the start of a journey towards a finished idea, but it is still a wonderful moment. Without the initial spark there will be no journey. It’s no exaggeration to say that the ability to be creative sits at the heart of our achievements as a species.
From Center for Creative Leadership April 2011 Leading Effectively e-Newsletter
Any development as a leader begins with an open and honest assessment of one’s own strengths and weaknesses. As a result, 360-degree feedback has been a cornerstone of CCL programs for several decades. “But there are perils” according to CCL’s Craig Chappelow. (more…)
From Center for Creative Leadership April 2011 Leading Effectively e-Newsletter
Major General Bernard “Burn” Loeffke likes to say that he goes into any situation armed with two weapons — the FIRO-B and MBTI. For the unitiated, the two are personality assessments that can give leaders great insights on how to work effectively with others. (more…)
From Harvard Business School Working Knowledge April 1, 2011
When Power Makes Others Speechless: The Negative Impact of Leader Power on Team Performance
By Leigh Plunkett Tost, Francesca Gino, and Richard P. Larrick
History has shown that possessing a great deal of power does not necessarily make someone a good leader. This paper explore the idea that power actually has a detrimental effect on leadership, especially with regard to how it affects open communication within a team. Article
From Harvard Business School Working Knowledge April 12, 2011
Teaching a ‘Lean Startup’ Strategy
Most startups fail because they waste too much time and money building the wrong product before realizing too late what the right product should have been, says HBS entrepreneurial management professor Thomas R. Eisenmann. In his new MBA course, Launching Technology Ventures, Eisenmann introduces students to the idea of the lean startup — a methodology that has proven successful for many young high-tech companies. Article
Leading a doomed company can often help a career by providing experience, insight, and contacts that lead to new opportunities, says professor Shikhar Ghosh. To learn more about what’s behind his thinking click here.
From HBS Working Knowledge 8 March 11
About 95 percent of new products fail. The problem often is that their creators are using an ineffective market segmentation mechanism, according to HBS professor Clayton Christensen. It’s time for companies to look at products the way customer do: as a way to get a job done. To read more about Professor Christensen’s insights on milkshakes and other products that “get the job done” click here.
From HBS Working Knowledge 8 March 11
Kevin Coyne, senior teaching professor in organization and management at Emory University authored Brainsteering: A Better Approach to Breakthrough Ideas. When you think about companies like Google, eBay, or Groupon you realize they were built around a single great idea. In his book Coyne describes a process that enables organizations to go beyond brainstorming to jumpstart success by “steering” idea generation. Read an insightful interview with Coyne conducted by Knowledge@Emory by clicking here.
From Knowledge@Emory 25 Feb 11
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