Guessing is not a strategy: How to build decision velocity with AI and real-time data
June 10, 2026 | Live Webinar
Pay for performance sounds so obvious a solution to better business performance (or project performance) that you may never have heard an argument against it. You'd probably be surprised to find out that there is very little evidence to support this pay strategy is superior than others. But it's true. There are particular academics at major business schools who are trying to get the word out that pay for performance is not "the answer."
They say you have to consider the big picture with its many parts:
- Pay will never solve worker performance problems in all organizations
- Even if it improves worker performance, that does not translate automatically into improved business performance.
- To get business performance improvement, an organization must complete a more sophisticated analysis to root out the real causes of problems, which may be related to the compensation system, but may not be.
So don't concern yourself that your organization does not clearly pay for performance. Concern yourself with getting involved in projects that improve business performance. And within your project, root out causes of inadequate performance under your control. Like that developer who sleepwalks through the day.
Posted on: November 21, 2008 07:23 AM |
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