Situation: A CEO is concerned about the intensity and accountability of her team. An employee stock ownership program is in place, and employees are rewarded with bonuses for meeting or exceeding objectives. HR reports that there is a lack of decision-making; employees just sit and talk instead of moving forward. How do you boost intensity and accountability?
Advice from the CEOs:
- Does the current bonus structure include revenue growth? If revenue growth is not part of the incentive program, then this won’t be the focus.
- What happens when the CEO is away?
- Assure that the #2 who’s in charge has the same sense of urgency as the CEO and has the confidence to make decisions.
- The company is at the point where it needs seasoned professionals to run key operations and functions.
- Ideally this would be an internal promotion, but if there is no internal candidate look to hire from the outside. Hire two new managers – for different teams. Watch how they do with each of their teams to determine whether one can run the whole outfit.
- This can ignite other employees – those who will catch on to what the new manager is doing and will now get the message.
- Another CEO empowered people and explained how it worked.
- They have had to swallow some poor decisions but have learned that they can’t come down on those who make mistakes – it discourages them from taking the risks needed to make decisions.
- They’ve organized strategic teams to develop the empowerment program with minimal input from top staff. Teams are required have to report on their results 2x week – no exceptions.
- The CEO hired two key hires who are hard hitting with deep resumes and experience – individuals who have shaken things up.
- The new managers started in a sheltered situation where they could learn the organization and the people. This was done before they were put in their eventual positions.
- What are the potential downsides to making this kind of change?:
- Some sparks will fly.
- Some will get upset.
- Be patient with this process – let it happen.
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The objectives seem too easy to reach. If performance bonuses are issued to everyone every year the objectives are too low. Bonuses might be like “profit sharing” with no profit required.
Consider bonuses only to those who exceed their set objectives by a meaningful margin.
Recognize those who meet objectives by an honourable mention. Add a monetary reward if they reach their objective a number of successive years.