RSSWhy is it that so many companies don’t seem to understand that the only way to really ensure that their business strategy is implemented by managers and employees throughout the company is to tie remuneration to strategy?
At a base level, when people are asked to change their behaviour, or pull together in a certain direction they tend to ask “What’s in it for me?”. If the answer is “not much” we can all guess what will happen, that is, not a lot.
Even worse, if it turns out that they are actually incented to do something that goes against the stated strategy, the results can be disastrous.
If, however, an effective remuneration scheme can be implemented such that the answer to the question is “a whole lot of money” or something similar, it is much more likely that the effort will be put in to reach the stated goals.
Sounds like a simple concept, but so many companies either dont seem to get it, or just do it really badly!!!
