"Show me the incentive, I'll show you the outcome" is a great quote from Charlie Munger. When was the last time you reviewed your incentive schemes? Particularly at manager level and above, I am still seeing too many poorly thought out schemes that don't drive the right behaviours. Small tweaks can have a massive impact. The psychology of incentives is one of the favourite parts of my role at Aristar Financial Consulting Ltd I Certified B-Corp & Aspiring FDs - if I can help guide the conversation, let me know. Keith Robinson, thanks for sharing the quote! 😉 #recruitment #outsourcedaccounting #incentives
Dead on the money. Incentive schemes drive behaviour, and there’s no one answer fits all- it completely depends on the outcome you want. I always tell clients to look at the loopholes. Reward on turnover = low margin or even loss deals No incentive on contract renewals = high customer churn rates Reward on sole performance only = lack of collaboration
Insightful quote! Incentive schemes play pivotal roles in organizational dynamics.
On paternity leave until late October!
5moPaul Glynn what common themes are you seeing in successful incentive schemes?