Linking the Reward System to Strategically Relevant Performance Outcomes

1. The most dependable way to keep people focused on strategy execution and the achievement of performance targets is to generously reward and recognize individuals and groups who meet or beat performance targets and deny rewards and recognition to those who do not.

CORE CONCEPT: A properly designed reward system aligns the well being of organization members with their contributions to competent strategy execution and the achievement of performance targets.

2. Strategy driven performance targets need to be established for every organization unit, every manager, every team or work group, and perhaps, every employee.