Hi there. Thank you for watching! It is unlikely we will continue with more videos on the matrix since it's an extremely narrow topic ... But, will be happy to answer any question here/mail or even have a call if you believe it helps. Just let us know what you need.
Very informative video. What would be the best basis for computing ave output per employee? Is it the past 6months or the same period last year basis? Thanks & more power!
Hi July, in order to answer this question you need to ask yourself which of the 2 methods will provide you with the most relevant basis. Is the yearly fluctuation of volumes more impacting than the last 6 months performance? As a rule, I usually focus more on the last 6 months for a new team or one with high turnover (so last year results become irrelevant), or for a business where seasonal fluctuations do not have a major impact. Going even further, I am more towards tracking the team's average productivity and give this as a target to beat month to month (fragmented down to weekly team target or even daily) and keep the average vs Median at an individual level. The reason for this is that I would like the individual to understand that although his results are important, the greater goal is to improve the team over time.
Hi. For sure. I am suggesting in the video that people should not compete at an individual level against a fixed target because this will limit their potential. But you can totally use this for the team in order to motivate the entire group to work together towards a higher achievement. So, let's say that you have a budget for rewarding the team for 100 products sold. You can tell them that if they sell 200 you increase the reward budget for the median by 50%. If they sell 300 you increase it by 100% and so on. Top performers will be interested to be the 1st so that they get as much as possible based on the comparison with the median, but will also be interested that everyone does as much as possible so that their base increases significantly.
Hi! I love the video's content. I am however stuck on the concept of keeping rewards on the Median. Do you let the employees know that the person in the "middle" will be rewarded? If so, doesn't this keep performers just doing enough to stay afloat and not exceed the matrix?
Hi. First of all thank you for watching. The person in the middle will absolutely get rewarded and the amount should be know upfront. The thing is, that person will most of the times be changing from one day to another as the ones behind it will try to get to the middle and the ones in the middle will try to go higher. If the best performer is at 150% versus the median and decides to take it easy, it will be surely caught by the pack in no time - because the median is always pushing upwards.
To give an example …. If Jack sold 150 cakes and he is the leader while the median is at 100 pieces sold … Jack will be at 150% … but if he decides to take it easy and not sell anything else the median will be growing to 110, 120 and so on … so his percentage going lower and lower until half of the team might go ahead and he would be the median …
Very informative. How to make a link between different team members. Let’s say you have sales team and coaching team they depend on each other success. Any tips
Hi, for sales I would keep the usual objectives while for the coaching team I would make a 40% sales relate objective (e.g. overall sales and raising the outliers / median - meaning making the top performers extraordinary, low performers better and constantly raising the median value as a consequence). For sure it depends on your specific situation / industry etc. Hope it helps
Hi, and thank you for your question. It's always hard to provide a good answer without knowing more details, but I would encourage you to reflect on how are these departments contributing to the high level company goals. I believe that development should be measured based on their throughputs (number, perceived quality, errors etc) while admin department it's usually a supportive function and most of the time can be measured against internal customer feedback, backlog of issues that need to be solved and so on ... Once you figure out the right KPIs you can easily create an incentive scheme.
I believe the credit cards example is sales related. If you have a specific case in mind that you don't know how to handle, send me an email (deris.bogdan@gmail.com) with the description and I am sure we can find a solution.
Very insightful, great information 👏 Looking forward for next episodes 👌
Thank you!
Great video showing how to set-up your incentive scheme!
Agree!
Thank you!
Great insights! Thank you and keep up the good work!
Hello Ionut. Many thanks for the comment!
Thank you. I found this quite useful and informative.
Liked and subbed!
Many thanks 🙏
Thank you, would be great to see more videos on defining the incentive matrix!
Hi there. Thank you for watching! It is unlikely we will continue with more videos on the matrix since it's an extremely narrow topic ... But, will be happy to answer any question here/mail or even have a call if you believe it helps. Just let us know what you need.
Actionable info, as useful! Very nice!
Thank you!
This was solid, got me the start I needed. Thanks!
Happy it was helpful 😁
This is a great video! Will totally try it!
Thank you!
Very useful! Keep up the good work!
Thank you 🙏
Good video! 10x
Thank you!
Very informative video. What would be the best basis for computing ave output per employee? Is it the past 6months or the same period last year basis? Thanks & more power!
Hi July, in order to answer this question you need to ask yourself which of the 2 methods will provide you with the most relevant basis. Is the yearly fluctuation of volumes more impacting than the last 6 months performance? As a rule, I usually focus more on the last 6 months for a new team or one with high turnover (so last year results become irrelevant), or for a business where seasonal fluctuations do not have a major impact. Going even further, I am more towards tracking the team's average productivity and give this as a target to beat month to month (fragmented down to weekly team target or even daily) and keep the average vs Median at an individual level. The reason for this is that I would like the individual to understand that although his results are important, the greater goal is to improve the team over time.
Thank you! Please can you explain the payout a little more i.e how are you setting it based on team work?
Hi. For sure. I am suggesting in the video that people should not compete at an individual level against a fixed target because this will limit their potential. But you can totally use this for the team in order to motivate the entire group to work together towards a higher achievement. So, let's say that you have a budget for rewarding the team for 100 products sold. You can tell them that if they sell 200 you increase the reward budget for the median by 50%. If they sell 300 you increase it by 100% and so on. Top performers will be interested to be the 1st so that they get as much as possible based on the comparison with the median, but will also be interested that everyone does as much as possible so that their base increases significantly.
Hi! I love the video's content. I am however stuck on the concept of keeping rewards on the Median. Do you let the employees know that the person in the "middle" will be rewarded? If so, doesn't this keep performers just doing enough to stay afloat and not exceed the matrix?
Hi. First of all thank you for watching. The person in the middle will absolutely get rewarded and the amount should be know upfront. The thing is, that person will most of the times be changing from one day to another as the ones behind it will try to get to the middle and the ones in the middle will try to go higher. If the best performer is at 150% versus the median and decides to take it easy, it will be surely caught by the pack in no time - because the median is always pushing upwards.
To give an example …. If Jack sold 150 cakes and he is the leader while the median is at 100 pieces sold … Jack will be at 150% … but if he decides to take it easy and not sell anything else the median will be growing to 110, 120 and so on … so his percentage going lower and lower until half of the team might go ahead and he would be the median …
Amazinng stuff. i am interested in more innformation on #4 teamwork. I am not certain I understand how to reward teamwork
Hi. Thank you for your feedback! Just let me know what exactly you would like to know more on point no 4. My email is: deris.bogdan@gmail.com
Very informative. How to make a link between different team members. Let’s say you have sales team and coaching team they depend on each other success. Any tips
Hi, for sales I would keep the usual objectives while for the coaching team I would make a 40% sales relate objective (e.g. overall sales and raising the outliers / median - meaning making the top performers extraordinary, low performers better and constantly raising the median value as a consequence). For sure it depends on your specific situation / industry etc. Hope it helps
Great info thank you
Thank you for watching!
Excellent
I am not about incentive and bonus in a firm. Could you explain me clearly?
how can i create an incentive structure which does not exclude the administrative department and product development department
Hi, and thank you for your question. It's always hard to provide a good answer without knowing more details, but I would encourage you to reflect on how are these departments contributing to the high level company goals. I believe that development should be measured based on their throughputs (number, perceived quality, errors etc) while admin department it's usually a supportive function and most of the time can be measured against internal customer feedback, backlog of issues that need to be solved and so on ... Once you figure out the right KPIs you can easily create an incentive scheme.
how to design a cost benefit analysis for sales incentive drive?
I believe the credit cards example is sales related. If you have a specific case in mind that you don't know how to handle, send me an email (deris.bogdan@gmail.com) with the description and I am sure we can find a solution.