By Ramiro Rodrigues
Among consultancies it’s common to reward project teams for good results with financial incentives.
The question is: Does this practice lead to better results? There’s a clear difference in position depending on which side the respondents are on. The dilemma is easy to understand.
When you’re in the position to be rewarded for the results achieved, it’s natural to see the positive side of this approach. But when you are responsible for delivering the bonus, some doubt will naturally exist. After all, what guarantees that this strategy will lead to projects with better results (regarding time, cost or quality)?
Many feel these rewards act as great incentives for project teams, thus leading to better performance. But one should also consider the concerns of those who fear that, in the name of this search for metrics, some values—such as professional ethics, transparency and lawfulness—may be compromised.
To find out if the bonus strategy should be implemented at your organization, have a look at the following four steps:
Step 1: Evaluate your organization's values.
More aggressive companies that encourage internal competition tend to favor this strategy. Knowing your organizational environment well will help you determine whether to adopt the financial incentive strategy or not.
Step 2: Define quality metrics.
Interpreting success only by the results related to project time or costs may lead to short-sightedness regarding customer satisfaction. Therefore, develop templates for satisfaction surveys that can help measure the quality of the delivered product and the opinion of the customer who receives the final result.
Step 3: Encourage mutual collaboration.
Dividing the bonus between specific members or projects creates a great risk of dissatisfaction among those who have been excluded. Thus, sharing the bonus between all team members, depending on the results of the overall project portfolio of the organization, is an interesting idea to consider.
Step 4: Start slowly and measure results.
Treat the implementation of this assessment as a project and aim to progress gradually, so that you can evaluate any impacts of this strategy on the culture and value perception of your company.
Good luck and much success!