In this article by Orvel Ray Wilson, he explains "...the foundation of an effective performance-based compensation plan is a set of clear and specific goals for your organization as a whole, for each functional department, and for each individual employee. These goals must be objective and quantifiable."
BOTTOMLINE: By using several integrated tools in the Six Disciplines Business System, you're able to accomplish the above steps easily:
- Discipline II. Set Goals That Lead - define measures, define targets, define initiatives
- Discipline IV. Work The Plan - define Individual Plans (IPs) quarterly, review IPs weekly, prioritize IPs daily
- Discipline V. Innovate Purposefully - recognize contributions