Pay for Performance, Creating a Self Managed Organization

Today I an spending a very enlightening 7 hours with Dr. Bill Abernathy learning about pay for performance. If you have any questions on performance pay post them in the comments and I will follow up with Dr. Abernathy to get you an answer during Q&A or breaks.

Comments

[Joey Brannon]

“@AdrianGSimmons: @joey_b Possible ?: How to structure reward *and* risk sharing of financial results among team members in a professional knowledge firm.”

Start slowly and replace your arbitrary pay (Christmas and tax season bonuses, annual raises) with incentive pay based in a performance matrix. As employees experience reward tied to performance they will demand the opportunity to shoulder more risk in exchange for reward. But you have to start slow. Big lesson/take away is be patient and build trust. Using dollars you are already going to spend means we all have the budget to demonstrate that employees can have a say in what they make. Make sense?

[Adrian]

Makes sense, and thank you for querying for me! The "performance matrix" allusion sounds interesting -- was that something that got defined any further? Thanks Joey!

[Joey Brannon]

Yes, I have some takeaways that I will blog tomorrow and I will link up some resources that expound on the performance matrix concept.