Thursday, November 27, 2008

The 20th Way to Survive the Crisis Without Firing People

Justin Roff-Marsh, a well known TOC expert, sent me the following tip:
Eliminate performance pay. Performance pay (commissions and bonuses) encourages the pursuit of local optima (which leads to waste and conflict) and signals that desirable behaviour is optional.
Sounds very good to me. The critique against performance pay is well substantiated by research.

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