The Leadership Book, 2nd Edition

Objectives and incentives

Employees’ performance is always more likely to be optimised when they have clear objectives and, if possible, linked financial incentives.

Frequency – annual with mid-year review.

Key participants – at least direct reports.

Leadership rating ***

Objective

In leading an organisation with a clear vision and strategy, you must ensure that:

• the strategies and actions of your teams and individuals are aligned to overall goals so that the organisation gives itself the best chance of success;
• individuals have clear performance targets and rewards so that they can share in success, their strengths can be enhanced and their weaknesses addressed.

Setting integrated objectives and incentives is not a formulaic approach ...