"And Jesus answered him, saying, It is written, that man shall not live by bread alone" Luke 4:4
A successfully executed strategy should unleash a bounty of incentives for various levels in the organization. Communication of the incentives is critical to the marketing of the strategy.
Incentives create a push for the strategy within the organization. Kautilya’s Artha Shastra mentions that before starting the war the Senapati (Chief of Staff) should announce the awards for bravery. Killing the enemy king, for example, could earn the reward of 10,000 coins. How many soldiers would have fancied killing the enemy king, but like a consumer promo offering a Mercedes Benz to one lucky winner, it could give a significant launch to strategy.
Teams Incentives
The focus of incentives needs to be on team performance, on broad measures, on specific goals that teams need to achieve in order to successfully execute strategy. In a sense, the execution of strategy could be compared to an army out on war. It cannot be about a bravery about a super soldier, or a super hero.
Fairness is Currency.
The process of administering the incentives has to be perceived as fair. There is enough evidence to prove that it is difficult to distinguish the desire for fairness from the desire for material gain. In a study 'The Sunny Side of Fairness' that it was noticed that compared with unfair offers of equal monetary value ( getting Rs 2 out of Rs. 10, in a split between two people ), fair offers (getting Rs. 2 out of Rs. 4 , in a split between two people ) led to higher happiness ratings. This study provides evidence that fairness is hedonically valued. Simply put, fairness is a currency in itself.
Since fairness is a currency in itself, it becomes very important that the organization views the incentive policy as fair. This creates additional commitment for execution and generates a positive vibe in the organization. A lot of effort expended on discussing on the favourite theme of who is losing out gets instead diverted to how to make it work for oneself, one's team and one's company.
A successfully executed strategy should unleash a bounty of incentives for various levels in the organization. Communication of the incentives is critical to the marketing of the strategy.
Incentives create a push for the strategy within the organization. Kautilya’s Artha Shastra mentions that before starting the war the Senapati (Chief of Staff) should announce the awards for bravery. Killing the enemy king, for example, could earn the reward of 10,000 coins. How many soldiers would have fancied killing the enemy king, but like a consumer promo offering a Mercedes Benz to one lucky winner, it could give a significant launch to strategy.
Teams Incentives
The focus of incentives needs to be on team performance, on broad measures, on specific goals that teams need to achieve in order to successfully execute strategy. In a sense, the execution of strategy could be compared to an army out on war. It cannot be about a bravery about a super soldier, or a super hero.
Fairness is Currency.
The process of administering the incentives has to be perceived as fair. There is enough evidence to prove that it is difficult to distinguish the desire for fairness from the desire for material gain. In a study 'The Sunny Side of Fairness' that it was noticed that compared with unfair offers of equal monetary value ( getting Rs 2 out of Rs. 10, in a split between two people ), fair offers (getting Rs. 2 out of Rs. 4 , in a split between two people ) led to higher happiness ratings. This study provides evidence that fairness is hedonically valued. Simply put, fairness is a currency in itself.
Since fairness is a currency in itself, it becomes very important that the organization views the incentive policy as fair. This creates additional commitment for execution and generates a positive vibe in the organization. A lot of effort expended on discussing on the favourite theme of who is losing out gets instead diverted to how to make it work for oneself, one's team and one's company.
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