My company is looking to design an incentive where PMs are given some bonus for bringing in projects on time/on budget. I'm very excited about this, and I think it's the right thing to do, except for a major concern. Like many organizations, our project managers are matrixed, and thus, many key people in the project process are in other departments. I'm very concerned about my project managers missing out on a bonus opportunity because of something someone in another department did (or didn't do). I see three options (each with their own unique pros and cons): 1)only hold PMs to the parts of the project in their direct control; 2)give PMs tools and incentives they can use to get people in other departments to get their part of a project done; 3)provide incentives at the department level based on some company-wide project priority system. What other systems exist? What's the most effective approach to this? Any help would be greatly appreciated. Saving Changes...
Here's a method that was used on some of my projects in the past that was very effective.
At the outset of the project, a pool of money was designated at "Project Pay"... somewhere between 5 -10% of the total project budget. This would be divided among the entire team, based on each person's individual contributions, IF the project came in on time/on budget. (Incidentally, no one was told how much money was at stake, just that there was some.) Once the project was completed, the team (pm's, developers, analysts, etc) completed 360-degree reviews, which were evaluated by upper management and the rewards divided accordingly. I think the final payout varied from a several hundred to several thousand dollars. It ensured that the entire team was incented to deliver, and after all, that's what you want.
Hi Gordon, its been also 9 months since your last posting, have you implemented any scheme?
Anyway, I'm also in the same situation as you were last year, and is trying to set up among other things, PM incentives. Would you be able to share with me what you've implemented and how'd went? Saving Changes...
