Creating Effective Reward Systems
In this episode of The Innovation Show, we welcome back Steve Kerr to discuss how to create positive reward systems within organizations. Steve details the 'bullseye exercise' and emphasizes the importance of defining performance in actionable terms. He shares insights from his experience at GE, covering the implementation of the 'wing to wing' approach, the impact of stretch goals, and strategies for devising comprehensive metrics. Throughout the conversation, Steve highlights the necessity of aligning rewards with business objectives and fostering a culture of candor and innovation.
00:00 Introduction and Overview
01:12 Defining Performance in Actionable Terms
01:28 The Bullseye Exercise
02:47 Connecting Incentives and Rewards
04:25 Challenges in Measurement and Bureaucracy
05:35 Real-World Examples and Cost Analysis
07:13 The Importance of Candor and Rational Behavior
14:04 Stretch Goals and Organizational Culture
23:06 Challenges in Rewarding Employees
23:23 Understanding Quartiling and Quotas
24:07 Jack Welch's Bottom 10% Rule
29:31 Financial and Non-Financial Rewards
31:54 The Importance of Timeliness in Rewards
37:31 Wing to Wing: Seeing Through the Customer's Eyes
42:26 Conclusion and Final Thoughts
On the Folly of Rewarding A,While Hoping for B
https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Motivation/Kerr_Folly_of_rewarding_A_while_hoping_for_B.pdf
Aidan McCullen, Steve Kerr, reward systems, employee behavior, BF Skinner, dysfunctional behaviors, fixing reward systems, CEO memo, leadership development, GE, Goldman Sachs, ultimate rewards, boundaryless organization, performance measurement, innovative culture, healthcare system, preventive care, stretch goals, Jack Welch, candid culture
