Tag: incentive program design

Incentive Program Design – Avoiding a Culture of Chaos

Incentive Program Design – Avoiding a Culture of ChaosWe spend a great deal of time emphasizing the positive aspects – and expected benefits – of properly designed and executed recognition or incentive programs.  There’s good reason for this, as we know firsthand how effective the right program can be – drawing from our own Rally Rewards program as well as creating and managing successful programs for our clients. In general, planning consists of several basic components – some of which are:

  • Identifying program participants
  • Determining program parameters and performance criteria
  • Assigning value to indicators to establish budget
  • Establishing  issuance frequency
  • Developing program branding and collateral

But what happens when things go wrong?  Programs launched with the best of intentions can result in catastrophe if poorly designed and executed.  Imagine replacing your culture of recognition or safety with a culture of chaos!

Two such examples are cited by Chloie Brandrick from the UK – one being a bank’s sales incentive program that effectively encouraged unlawful conduct on the part of program participants.  The UK’s Financial Conduct Authority found that a “culture of misselling” was established by the program, which rewarded cash rewards and promotion to advisers for hitting sales targets, while those falling short faced pay cuts and automatic demotion.

The resulting chaos is summarized by Brandrick:

“Badly-managed and left unchecked, this bank’s incentive schemes went seriously off-track – instead of supporting business objectives, they focused on unsustainable short-term financial goals. This meant the scheme was not just ineffective but counterproductive – eroding employee motivation, damaging public perception and ultimately undermining performance.”

The second example involves a hospital.  After winning a prestigious award, the hospital awarded each of its 4,000 employees with a Kit Kat – a gesture that was decidedly insulting.  Tangible rewards can be highly effective, but only when appropriate to the amount of effort and participation required earning them.  In this case, management was treated to a fine meal while rank and file employees received a single Kit Kat.

It doesn’t have to be this way!  With thoughtful planning, communication and consistency you can avoid incentive program chaos!  Find out how you can get the most from your incentive program by contacting us today.

Seeing Clearly Now – the First Step in Incentive Program Design

Even folks who have never been to Los Angeles are probably familiar with the area’s reputation for periodic bouts of smog. But there’s another side to the air quality in Southern California that those who live here enjoy. And that’s the brilliant blue skies and crystal clarity that follow the storms that roll off the… Read more »

The X’s and O’s of Incentive Program Design

At QIC we decided to follow up the Broncos – Seahawks Big Game with a soup bowl (or two) of our own.  For a little friendly competition we had a soup cook-off (dubbed the QIC Souper Bowl) on the Monday following the Seahawks’ victory.  In the process I discovered a direct parallel to effective incentive… Read more »

Website Demolition and Incentive Program Design

There’s a very interesting, somewhat tongue-in-cheek article in a recent edition of the Marketing Profs news compilation and blog. (Side note: If you haven’t already checked out this excellent service, I highly recommend it). This particular article, Destroy Your Website in 13 Easy Steps, by Andy Crestodina, highlights some practices that companies definitely should avoid… Read more »