Contents
Part 1: Why You Need to Reward People Differently
Chapter 1: Workforce Trends in the Twenty-First Century
Rapid Pace of Technological Change
Permanent Part-Time Positions at the Owner and Employee Levels
Globalization of the Workforce
Employers Demanding Higher Skills
Lack of Clearly Defined and Stable Jobs
“Around-the-Clock” Economy (24/7)
Chapter 2: Superior Performance Comes From Alignment
The Nine Performance Variables
Chapter 3: Building a Compelling Vision
A Vision Is More Than a Simple Statement
How to Ensure Owners Connect to the Vision
When to Involve Owners in Creating the Vision
What Should a Compelling Vision Contain?
The How To Is as Important as the Vision
Journey, Milestones, and Measuring Progress
Chapter 4: Link People Performance to Strategy
Strategy Execution as a Core Competency
Chapter 5: Your Role as the Leader
Even Managing Owners Need Assistance
What Successful Managing Owners Do—The Leadership Model
Chapter 6: Why You Need to Reward Different People Differently
Align Monetary and Nonmonetary Rewards With Position Level
Rapidly Changing Competitive Landscape
Focus on Current Production and Future Capacity
Reward Performance, Not Entitlement
Part 2: What You Need to Reward
Chapter 7: Make It Happen Through Performance Management
Owners and Performance Management Systems
Chapter 8: Selecting the Right Performance Measures
Vision, Strategy, and Objectives
The Role of Performance Measures in Driving Behavior
Why Choose Performance Measures That Are Linked to Firm Objectives
How to Choose Performance Measures That Are Linked to Firm Objectives
Potential Dangers When Using Performance Measures
Using Scorecards to Categorize and Clarify Performance Measures
Internal Systems and Business Process Measures
Employee Growth and Learning Measures
Chapter 9: Overcome the Challenges in Creating a Compensation Plan
Best Practices in Designing a Compensation System
Entitlement Performance Continuum
Six Major Obstacles and How to Avoid Them
Chapter 10: Choosing the Right Elements: Build a Compensation Plan
Compensation for the New Owner
How Do You Determine the Market Value (“Street Value”) of Your Owners?
Combining Tangible and Intangible Compensation
Part 3: How to Reward Performance
Chapter 11: How to Manage Performance Effectively
What Is Performance Management?
Ensure Performance Expectations Are Clear From the Beginning
Create a Culture Where Giving and Receiving Feedback Is the Norm
The Role of the Johari Window in Performance Management
Chapter 12: Owners Need to Be Evaluated Too
Factors Determining the Owner’s Value
Align Goals and Rewards to Strategic Initiatives
Building a Culture of Accountability—“Accountability is Good, But Not for Me”
What Support Will Owners Need?
Start With the Firm’s Strategic Plan
Individual Owner Performance Plan
Areas of Performance Evaluation
Steps in the Evaluation Process
Changes to the Owner Performance Plan
Chapter 13: Even Managing Owners Need Feedback
Chapter 14: How to Compile and Assimilate a Bonus Performance Plan
The Right Performance Bonus Plan
Sample Performance Bonus Document
Case Study—Compensation System in a Midsized Firm
Managing Owner and Executive Committee
Part 4: Where Do You Go From Here?
Chapter 15: What Will You Do Tomorrow?
Appendix: 2011–2012 Performance Management and Compensation Survey