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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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