HR Digest

MARCH 9, 2020

“In simple terms, we presented employees with situations that ask them to make judgments—often using ambiguous and incomplete information, to best simulate the real-life conditions of decision making,” said Dr. Ian Stewart, Executive Director Learning and Design at to Kaplan Leadership & Professional Development.

Team 69

Team Kaplan Attrition Survey 69

Strategy Driven

JUNE 6, 2013

Steven and Stephen reveal that economics is simply the study of incentives and that by understanding incentives one can reveal the hidden truth about why people behave as they do and the results consequently achieved. Freakonomics examines the commonly held myths surrounding: Campaign finance. Crime rates. Child-rearing.

Resources 50

Resources Levitt Incentives Analysis 50

Leading Blog

DECEMBER 13, 2019

In fact, bad breaks and bad feelings create the most powerful incentives to become smarter and stronger. Whether it comes to our finances, our health, our communities, or our planet, it’s easy to avoid thinking ahead. Properly understood, bad can be put to perfectly good use. Blog Post ).

Books 236

Books Leadership P&L Learning-by-Doing 236

Mike Cardus

APRIL 14, 2011

Unfortunately when this question is asked to executives and managers they are operating off false theories of folklore that are leading them to treat employees as less than capable. The assumption that people need to be motivated by incentive bonuses to produce more. The notion that some types of roles (sales, research, finance, etc.)

System 157

System Commitment Motivation Incentives 157

N2Growth Blog

NOVEMBER 29, 2010

There is a tremendous amount of conflicting data as to whether or not incentive compensation in any form is an effective motivation tool. In today’s post I’ll take a look at the well intentioned but often misguided practice of year-end bonuses… Here’s a question – do bonuses work?

Blog 318

Blog Metrics Brand CEO 318

Harvard Business Review

JULY 17, 2017

When I ask students graduating from Harvard Business School what they’re doing next, I often get some version of “I’m going into finance but…” Then they quickly explain that finance is just a way station on the route to nobler goals. And it is truly fascinating.

Finance 8

Finance Insurance Career Reputation 8

Women on Business

DECEMBER 7, 2010

What if service people were given incentives for the “yes” answers they gave to customers and were docked pay for their “no” answers? If the person says “yes” they may have to do something and then take a risk for doing it. And frankly, it seems that some service people don’t feel like they are being paid to say “yes.”

Press Release 170

Press Release Discount PR Compliance 170

Women on Business

JANUARY 3, 2011

If possible, provide some financial incentive like a small hourly rate or commission for work well-done. Make sure you say in your ad description what they need to be successful with you (eg – a computer with internet access, a nice phone voice, computer skills, etc.). I have used www.internhere.com to post my request.

Press Release 160

Press Release Parcell Discount PR 160

Harvard Business Review

FEBRUARY 23, 2016

And indeed, the evidence does suggest that incentive-based pay can be damaging in many settings. However, very little of the research they cite was actually conducted on business executives. The research that has been conducted on business leaders suggests that financial incentives can work… and quite often do.

Execution 8

Execution Incentives Short-term Long-term 8

N2Growth Blog

MAY 5, 2011

It has definitely caused its fair share of angst, frustration, and vigorous debate among executives and professional advisors simply for the reason that it is one of the few metrics that touches virtually every aspect of a business. Methodology : You do have a choice…Moreover most successful pricing models offer a variety of options.

Price 308

Price Discount Brand Supply Chain 308

Harvard Business Review

FEBRUARY 23, 2016

For chief executives and other senior leaders, it is not unusual for 60-80% of their pay to be tied to performance – whether performance is measured by quarterly earnings, stock prices, or something else. We propose that, instead, most firms should pay their top executives a fixed salary.

Execution 8

Execution Incentives Short-term Long-term 8

Strategy Driven

JULY 20, 2017

It is very challenging for some people who lead busy lives to find time to stay on top of their bills and other finances. This money can then be further invested in the business or passed on to customers in the form of incentives or discounts. So, start improving your cash flow and handle your finances smoothly. Cost effective.

Banking 57

Banking Core Competence Efficiency Finance 57

N2Growth Blog

OCTOBER 14, 2010

Whether paid work or a volunteer role within a church, placing people in positions where they can maximize their strengths, know that they are truly valued and that they play a significant role in fulfilling the vision will go a long way towards preventing burn out and loosing incentive. Great interview Mike!

Blog 302

Blog Leadership Brand Crisis Management 302

Strategy Driven

NOVEMBER 6, 2015

Strategic Plan includes provisions for refinancing, equity and debt financing. Finance charges are negotiated. Incentives-rewards-bonus plan is annually updated, with realistic, measurable goals. Accounting firm utilization plan is annually updated, with realistic, measurable goals.

Succession 50

Succession Strategic Planning Budgeting Goal 50

Harvard Business Review

FEBRUARY 2, 2012

Executive compensation has been reformed significantly to align with long-term performance. Most of them — increased capital, executive compensation changes, higher credit quality, fortress balance sheets — would have been fought tooth and nail by the Financial Services Roundtable before the financial crisis.

Finance 13

Finance Motivation White Paper Banking 13

Strategy Driven

JANUARY 22, 2015

Invest in new business ideas: With financial strength in their pocketbooks and in their bank accounts, women can now even think about investing in other business ideas conceived by others women who are having trouble getting financed the conventional way.

Diversity 50

Diversity Conference Competitive Advantage Participative 50

Harvard Business Review

NOVEMBER 7, 2018

More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to the standard approach to financing a risky venture. In fact, ICOs have upended the conventional pattern of staged experimentation and fundraising.

Cost 8

Cost Decentralization Finance Entrepreneur 8

Harvard Business Review

SEPTEMBER 8, 2014

To be an economist, you kind of have to believe that people respond to economic incentives. But when anyone suggests that an economist’s views might be shaped by the economic incentives he or she faces, that economist tends to get bent out of shape. Economists are human beings, and human beings respond to incentives.

Incentives 11

Incentives Finance Influence Motivation 11

Harvard Business Review

OCTOBER 31, 2016

For many executives battling through economic headwinds in emerging markets, the answer tends to be wherever they think someone will provide the strongest boost to top-line growth, which usually means hiring an additional sales or marketing manager to support the commercial front lines. Laura Schneider for HBR. Somewhere else?

Marketing 8

Marketing Channel Management Incentives Survey 8

Harvard Business Review

DECEMBER 11, 2013

Heightened expectations of expertise are also part of the picture — for instance, GE’s recent transition from asking executives to focus on breadth to focus on depth. Brad Peters, CEO of Birst, a business intelligence company, raised the issue of incentives and structure with me in an interview at Saleforce.com’s Dreamforce conference.

Incentives 8

Incentives Chief Information Officer Business Intelligence Execution 8

Strategy Driven

DECEMBER 5, 2013

Trusts, however, were financed by consumer deposits, while the toxic asset of 2008 were securities contracts held by investment banks.). Senior executives in 2008 were not interested in rendering an inconspicuous service to the financial interests of the country. They didn’t even want to forego their bonuses.

Banking 50

Banking Crisis Morale System 50

Harvard Business Review

FEBRUARY 2, 2016

You’ll often find customer relationship management within marketing, budgeting within finance, supply-chain management within operations, outsourcing within procurement, training within HR, and new product development within R&D. Business units come and go, but finance, HR, marketing, IT, legal, and R&D seem to last forever.

Development 8

Development Supply Chain Incentives Outsourcing 8

Strategy Driven

OCTOBER 3, 2013

The model is actually quite simplistic although not always easy to execute. The best way to continue building the culture of caring is to offer performance incentives and gestures of gratitude for employees who demonstrate the culture in every aspect of their job from the way they treat the business to co-workers and customers.

Motivation 59

Motivation Environment Servant Leader Competitive Advantage 59

Harvard Business Review

SEPTEMBER 4, 2017

Why are executives who do everything they do to heed the recommendations of innovation theorists continuing to come up short? Fortunately, for senior executives there was a solution. The managers of the new business or organizational unit would have incentives similar to those of their new competitors.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

OCTOBER 18, 2016

Such performance-insensitive pay packages seem to defy both common sense and established economic theory on optimal incentives. On average, common ownership concentration has almost doubled in the last 20 years in the construction, manufacturing, finance, and services sectors. It’s not just the incentive package.

CEO 8

CEO Asset Management Cooper Industry 8

Harvard Business Review

JANUARY 24, 2012

Baruch Lev teaches accounting and finance at NYU's Stern School of Business. And I couldn't resist following up with an email Q&A: Justin Fox: A lot of smart people have been saying for a while now that public-company executives should put less time and effort into dealing with Wall Street. Your book argues that they're wrong.

Short-term 11

Short-term Long-term Parcell Incentives 11

Harvard Business Review

SEPTEMBER 22, 2011

More and more companies are tying incentive pay to customer metrics. TIAA-CREF, the big financial services company, includes customer loyalty score improvement in senior executive compensation. The payoff from linking incentives to customer feedback can be significant. Your CFO and finance team can take a leadership role here.

Incentives 10

Incentives Sample Customer Loyalty Metrics 10

Harvard Business Review

MARCH 30, 2017

Consideration must also be given to the decisions made by executives in those firms. Rather, executives make decisions about how to organize work, how to reward individuals for their labor, and where the boundaries of their firm should be. What if we changed some of those incentives? Related Video. Presently, many U.S.

Marketing 8

Marketing Short-term Incentives Long-term 8

Harvard Business Review

MARCH 29, 2018

The audience for such innovation wants to be receptive: A recent American Hospital Association (AHA) survey found that 75% of senior hospital executives endorsed the importance of digital innovation. But much of the blame can be attributed to hospitals’ misaligned budgeting and incentive systems. health care system.

Budgeting 8

Budgeting System Innovation Payback Period 8

Harvard Business Review

MARCH 22, 2018

In an organization with a high level of cultural capital, misconduct risk is low, and its organizational structures, processes, formal incentives, and desired business outcomes are consistent with the firm’s stated values. Unspoken patterns of behavior reinforce this alignment and drive corporate outcomes. Principal-agent problems.

Company 12

Company Banking Incentives Human Capital 12

Harvard Business Review

SEPTEMBER 15, 2017

A comprehensive survey of financial executives concluded that “repurchases are made out of the residual cash flow after investment spending.” Fewer companies would go public, instead financing themselves by taking on more debt. The evidence suggests this view is more accurate. Debt is a useful analogy for a second reason.

Short-term 8

Short-term Long-term Intangible Assets Rate of Return 8

Harvard Business Review

DECEMBER 29, 2014

As an example, a recent job posting on the website of a global healthcare company seeks an individual for a sales operations leadership position who can do the following: Strategy: •Contribute to the 1- and 3-year business vision as a member of the executive leadership team. First, they face many decisions.

Offshoring 10

Offshoring Outsourcing Analysis Incentives 10

Harvard Business Review

MARCH 14, 2017

After extensive assessment, they settled on two initiatives: realigning incentives for employees and systematically introducing outside talent and practices. Roivant’s first response was to address misaligned incentives.

Innovation 9

Innovation Company Incentives Industry 9

Harvard Business Review

FEBRUARY 28, 2018

Executives cut investment to hit short-term earnings targets and trigger bonus payouts, the argument goes. This is taught in any Finance 101 class, and is presumably what McKinsey advises its clients. miragec/Getty Images. Are today’s businesses plagued by short-termism? The narrative is compelling. So does short-termism exist?

Price 8

Price CEO Short-term Long-term 8

Harvard Business Review

MAY 15, 2013

Not surprisingly, as Jean Rogers, the Executive Director of the Sustainability Accounting Standards Board (SASB), points out in a Greenbiz blog , "It''s no surprise that banks and financial sectors are the institutions least trusted by U.S. Finance Sustainability SASB' environmental, social, and governance — or ESG) performance.

Banking 8

Banking Licensing Finance Insurance 8

Harvard Business Review

OCTOBER 3, 2016

And Wells Fargo CEO John Stumpf, already under fire for a fraudulent bank account scheme , has faced tough questions about his salary and the multimillion-dollar retirement package of Carrie Tolstedt, a key executive tied to the scandal. Golden parachutes such are now paid out even when executives leave amid scandal.

Golden Parachute 9

Golden Parachute Hostile Takeover Airlines Execution 9

N2Growth Blog

AUGUST 5, 2010

I can't tell you how many times I work with executives and leaders who are more worried about being safe and politically correct than they are about doing the right thing for the business. And if you succeed by learning to be politically correct in an organization what is the incentive to be anything else? Thanks for sharing Mark.

Politics 311

Politics Blog Leadership Diversity 311