“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.”
Round here, we talk a lot about the 4 Foundations that will give a business owner McFreedom, that is, freedom to choose whether to scale, grow, or sell your business…or run it from a beach somewhere. The 4 Foundations – Planning, Process, People and Performance – are all inter-dependent and inter-related, all essential for making a small successful business even more successful, without any one of the four, the business can’t fulfil its potential. The fact is though, that the 4th foundation, performance management, which is the real cornerstone of the whole McFreedom System™ is often the one that is either forgotten or set up badly. For your Performance Management system to add value, you need three things:
We’ve talked about the first two in recent blogs, so let’s take a look at number 3, and the common mistakes business owners make. Or rather the biggest mistake that business owners make – making rewards all about money, or more specifically, the bonus. So what’s the problem with bonuses? They’re giving your team members what they want aren’t they? Well here’s just a few of the potential pitfalls:
To be really effective, a bonus, or better still a pay review, must be based around very clear measures of business performance first and foremost, and then, if the business has done well, very clear measures of the individual’s performance to determine the size of the bonus they will receive. But money really isn’t everything, there are other much more simple ways to engage your team.
In the words of Simon Sinek, author of ‘Start with Why’: “When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” Do one thing: Consider how you are engaging your team emotionally on a daily basis For more information on how MPL can help you visit www.mariannepage.co.uk or contact me on hello@mariannepage.co.uk
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AuthorMarianne is the author of three books, and is currently working on her fourth, whilst regularly writing her blog, we hope you enjoy it :-) Archives
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