Many companies have annual performance and profit-share Plans to incent and motivate their workforce.
Two of the basic challenges with those Plans are: (1) they operate on a once-a-year cycle, and (2) it takes companies too long, often with over a full calendar quarter lag, to data-collect, calculate, and communicate the resulting pay-out rewards.
The consequence: by the time Plan results are derived and distributed, their relevance and meaning have long past. And, while the workforce doubtless appreciates the extra cash, the Plan’s intended workforce-performance-stimulus is rarely realized. CxO’s ask: ‘remind me why are we paying this out again?’ The workforce wonders: ‘thanks, but, what is this money for?’
Over the years, we’ve helped many firms resolve these questions. We assist in restoring the performance-boosting objectives of their profit-share plans. We accelerate the reporting feedback cycle from annual to quarterly (and, even quarterly to monthly), and we calculate and communicate the results in a fraction of the time. This saves clients money and improves their performance results.
- Case Study: for a 1,000+ office bank client, for their 10-Factor market-region-state- national plan, we cut the calculation timeline from their previous 120 days down to 21. Thereafter, we ran it quarterly, empowering the bank to enhance their plan, their metrics and weightings, and their targets and goals, to the real-world market changes that occurred quarter-to-quarter. We even fine-tuned the precision of their local market sales, service, and efficiency metrics.
The results: a vastly more relevant and meaningful profit plan, more obvious cause-and-effect outcomes; and, no surprise, material workforce and enterprise performance improvements. Contact us if we can help improve your quarterly and annual profit-plans.