Want the right results? Create the right rewards.

A leader stays riveted on the revenue goal, directors on the revenue roadmap, teams on revenue results.  Sounds easy but it isn’t. 

In traditional business models, sales teams and individuals perform with one goal in mind — to maximize their compensation.  And Directors, or managers, maximize their stake by ensuring that the best mix of high-margin products and services get purchased by the target clients.  All the while, leaders, or executives, watch those sales numbers religiously, encouraging added efforts or new approaches when trends are falling short.  

But, here’s the gotcha…  Even if sales is exceeding their targets and marketing gets the message out better than expected, you still may not be achieving the profit and growth goals you had in mind.  Discounts, specials, attracting low-value clients, trade-ins, sales, selling low-margin products and services — it may all add up to bonus time for the troops but it’s a big “What’s happened?” for the owners. 

If you want the right results that support profit, market share, business brand and product awareness, you’ve got to create the right rewards.  Rewards should be tied to the company culture and brand.  They should acknowledge  what you sell and who you sell it to, the exceptional customer experiences you provide, the creative cost-cutting you employ,  the community welfare you create, the innovative customer-centered processes you deploy and on and on.  

The key is to let your team know in advance what will be rewarded and bonused so they’ll always steer toward the sales results you encourage.  To make it cultural, bonuses should be a part of as many compensation plans as you can manage.  Like a game show, telling your people what they’ve won after they’ve been exceptional is great for the company newsletter but won’t develop the culture and habits critical to long-term business health.  

Make rewards be about enhancing what you want your business to stand for so that your team can win while the business wins.

Let us help with how to make this part of your business.  It’s worth a conversation.     *****

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One Response to “Want the right results? Create the right rewards.”

  1. jude says:

    I loved this article! It helped me to understand for the first time that enhancing company culture and character are more important than sales bonuses. It made me think about how athletes might feel being part of a championship professional sports team. It might make news if one of your players was a superstar and made all the money but a team filled with players who understand the value of doing what it takes to make the team great has incredible payoff for everyone. Everyone gets a championship ring, everyone gets a raise for next season and everyone learns from the each other what it takes to be a champion. Big parallels to business here!

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