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

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