Re: MBO, Perf Reviews, Incent Pay in a L-O

Jamey McCabe (
Wed, 14 Dec 1994 16:23:30 -0600

>...and I could go on a bit. But, I'd like to go much further. What would
>all of this look like in an organization that was *really* a learning

Great subject for this crowd Richard. I've been especially challenged in
the last year in this regard. I often wonder if I'm becoming more
difficult due to the new thought patterns LO and TQM have introduced or if
the World is just progressing and what used to be generally acceptable is
no longer. But that's a different subject.

At my company we've traditionally had a bi-annual Evaluation, then a
banding of everyone by position group to determine raises and promotions
and then an individual annual review to work out what goals to set for the
next year, especially if you didn't feel satisfied with your reward and
recognition over the past year.

I'm now pushing a change toward what I think of as a capitalistic system
with synergistic feedback. Basically each is rewarded based on how well
their group does and the group provides feedback to the individual on how
they could better support the group in acheiving greater returns. To be
more specific;

I think that groups should all share in monetary success equally of an
absolute amount rather than as % of current pay.

In addition there should be 360 degree feedback on a very dynamic basis
rather than scheduled. The feedback could be structured like a
suggestion program.

A common question is What's the group? I think it's whatever group of
individuals has to naturally work tightly and well together to acheive
something that can be the basis for a monetary amount. For the group I'm
in this is probably 200 people.

I'm kind of modeling this after the Entreprenuer model where you're
rewarded commensurate with your success not managements opinion of you.

Jamey McCabe
Oak Park, Illinois