Tuesday, May 22, 2012

What Gets Measured and Rewarded Gets Done - Well!

Ihome Ipad 2 Smart Book Cover

In the US hair salon industry, John McCormack of Visible Changes uses performance measures, bonuses and profit sharing to motivate team members.
To encourage excellent customer service McCormack expects his stylists to build a 'request-by-name' clientele. When requested by name the stylist receives an extra 10% commission. When that happens 50% of the time the bonus increases an additional 10%.
Finally, when a stylist is requested by name 75% of the time, the bonus kicks up another 10%. Once the particular hairstylist is among the top 50 requested in the chain he pays another super-bonus.
McCormack's operations outperform the industry in almost every measure and his hair stylists earn three times the industry average

When Managing Change In The Workplace ... Have Clear Expectations


People are motivated to achieve things they can see, touch and measure.
Imagine bowling and each time the ball was half-way down the lane a big screen came down and you couldn't see how many pins you knocked over. You'd soon get bored with the game and quit.
As you are managing change in the workplace it is important to:
  • Relate your measures to your strategic advantage and clearly spell out a numeric expectation for every job/process in the organization.
  • Chart a few key be haviours that indicate progress in using the new methods.
  • Post them graphically in high-visibility areas - lunch rooms, etc.


Epson Stylus NX430 Small-in-One Inkjet All-in-One Printer C11CB9220