Showing posts with label incentives. Show all posts
Showing posts with label incentives. Show all posts

Wednesday, May 24, 2023

multiple, simultaneous efforts


Most prescriptions for organizational change have focused on how to launch a single change initiative. This made sense in a stable world in which undertakings were planned and executed gradually and sequentially — like controllers directing airplanes taking off on a single runway, one at a time and well distanced from one another. However, the challenges of coping with dynamic markets, global crises, and advancing technologies are forcing organizations to transform quickly, which can require multiple, simultaneous efforts on several fronts. When time-pressured controllers launch many airplanes in close succession, the risk of collision increases significantly. Yet change managers have a very limited understanding of how such “collisions” happen or how to reduce those risks.

Failure to manage interrelationships between change initiatives can generate poor overall performance in three ways. First, it can lead to a large number of seemingly discrete initiatives with unclear prioritization and insufficient resources allocated for implementation. Second, it creates misaligned incentives for managers whose concern for their own key performance indicators inhibits cooperation across departmental siloes, when cooperation could better generate the desired benefits. Third, it prevents managers from perceiving connections between their own initiatives and those occurring elsewhere in the organization, creating unexpected conflicts about resource allocation or the timing of implementation. These conflicts undermine each change initiative and decrease overall corporate performance.


Quy Nguyen Huy, Rouven Kanitz, Julia Backmann, and Martin Hoegl

"How to Reduce the Risk of Colliding Change Initiatives," MITSloan Management Review. June 3, 2021

Wednesday, September 28, 2022

share profits


The larger truth that I failed to see turned out to be another of those paradoxes - like the discounters' principle of the less you charge, the more you'll earn. And here it is: the more you share profits with your associates - whether it's in salaries or incentives or bonuses or stock discounts - the more profit will accrue to the company. Why? Because the way management treats the associates is exactly how the associates will then treat the customers. And if the associates treat the customers well, the customers will return again and again, and that is where the real profit in this business lies, not in trying to goad strangers into your stores for one-time purchases based on splashy sales or expensive advertising. Satisfied, loyal, repeat customers are at the heart of Wal-Mart's spectacular profit margins, and those customers are loyal to us because our associates treat them better than salespeople in other stores doe. So, in the whole Wal-Mart scheme of things, the most important contact ever made is between the associate in the store and the customer. 



Sam Walton

Sam Walton, Made in America by Sam Walton & John Huey. Bantam Books. 1992. p. 128