Business Management

Incentives for Key Managers

As the year ends and goals are set for the new year there may be a key role for incentives in managing and retaining key executives for the company. Rewards and incentives in the workplace have benefits for both employees and employers.


Here are some reasons for and examples of how to structure effective incentive programs for the management group.

1. Monetary Incentives
Monetary incentives reward workers for performance and productivity through money. These incentives include employee stock options, profit sharing plans, paid time off, bonuses and cash awards.

2. Non-Monetary Opportunities
Non-monetary incentives reward employee performance through perks and opportunities. These rewards can include flexible work hours, training opportunities and the ability to work independently. The rewards and incentives are valuable to an employee because they may allow workers to learn new skills and pursue advancement opportunities.

3. Turnover. 
You want to retain key management personnel for a number of reasons. High turnover destabilizes the company and can have severe effects on moral of employees and the bottom line.

4. Enhance Growth.
You want to retain high performing managers to enhance your own company’s growth potential and to keep key people from wanting to look at other opportunities.

5. Setting the Bar
Good managers don’t expect a bonus without achievement but don’t set the bar so high as to be unachievable. That becomes a disincentive to achieve growth.

6. Improve Profits.
Set goals that help improve your bottom line; just achieving new sales records is not a priority if the costs exceed the benefit. Sales executives should be just as concerned about profitable sales as the CFO.

7. Share.
Pay executives for overachieving by sharing profits. As profits goals are exceeded rewards can continue to be major incentives if shared fairly. Reward contribution. Roll plans forward and allow incremental bonuses for achievements in consecutive years. That’s a great way to keep a key person from leaving; that extra bonus for additional achievement may be too juicy to walk away from.

Incentives are important tool to maintain a motivated and dedicated management team and a well-designed plan can bear fruit over the long term. 
I trust these suggestions may help with goal setting in the new year. Please let me have your thoughts. gerry@polarisgroumc.com
   

Business Management

Are you a Decision Maker or Procrastinator?

Decision-making is the key to moving forward and in doing so the greatest obstacle is procrastination.

Think the time you spend answering e-mail, composing and trolling Twitter doesn’t have an impact? Think again. Procrastinating in making business decisions generates enormous costs from time wasted and decisions delayed.

There are several approaches that may be considered to eliminate this waste.

1. Don’t delay. 
Any time you put something off the problem often gets bigger leading to more stress and possibly more procrastination. Recognize this behavior.

2. Reduce the issue to small tasks. 
Work in short bursts to complete each portion. This focused activity for short periods allows you to get the feel for accomplishment. Concentrate on results, not on being busy.

3. Learn to prioritize. 
You may never get caught up with everything you need to do. To be an effective leader you have to prioritize and decide what’s important and manage your time effectively.

4. Turn off distractions. 
If necessary, turn off email, stop answering the phone; give 100% attention to the task at hand.

5. Create a daily plan. 
At the end of each day spend 3-5 minutes setting up the next day’s schedule. It may save an hour the next day while you try to determine where to start your work activity.

6. Be accountable. 
Make yourself accountable to someone for what you want to accomplish. This could be an associate, friend, or business mentor. 

A task can more easily be tackled if you visualize it completed. Remember the “Law of Expanded Time”. Work will fill the time available to complete it. By making less time available to complete a task, you will spend less time completing it.

JUST DO IT.

I hope these ideas help with your decision-making process. Please let me know your thoughts. Gerry@polarisgroupmc.com

Business Management

Keys for successful managing

Let’s look at some key factors that contribute to business success. The role management plays is critical and management must focus on and achieve the goals and objectives set for the business. This can be facilitated with effective use of these skills:





1. Effective Interpersonal Relationships
Staff members and colleagues respect managers that demonstrate trust and treat people with dignity and respect. Strong managers keep their word, and show character even under challenging conditions.

2. Leadership
An effective leader has a vision, a drive, and a commitment to achieve beyond that vision. The leader must then also have the skillset to enlist the support of the organization to achieve the stated goals.

3. Communication
An effective manager communicates effectively in person and through all communication channels. That person also is open to feedback and listens well to input from staff and colleagues.

4. Understand the business’ finances
Understand the financial aspects of the business and sets goals and measures and documents staff progress and success. This allows the team to feel a sense of progress, that they are reaching goals and exceeding expectations. Staff want to know how they are performing against expectations and that needs to be openly communicated.


These are just a few characteristics of management success. I trust this outline provides an opportunity to expand opportunities to reach new levels of success in your business.

Please let me know your thoughts. gerry@polarisgroupmc.com