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