˳How-to... Incentives for Management Roles

Encouraging individuals to take up management roles should lead to positive outcomes in the future rather than just being a reward for past work. Specifically, management roles should ensure (1) the integrity of the business flow and (2) the achievement of the business goals. In that order.

Note: Please use this document only as an unofficial guideline for creating your incentive plan for management roles.

“When specifying incentives, we should keep in mind that one person represents several management roles. In this sense, it is necessary to determine incentives in advance, representing the sum of incentives for each managerial role performed.

The same person can have a management role and be a regular Doer. Evaluation and incentives are done separately.”

Who gets an incentive, and for what performance?

Incentives for Profit Leader

Profit Leader will be omitted from the incentives. The assumption is that the entrepreneur is the founder and Profit Leader at the same time. In that case, their incentives are the profits of the company itself.

In the event that the Profit Leader is a professional manager, then the incentives should be reduced to the company's long-term profit. Thus, the salary, benefits, and bonuses related to the company's profit will be combined.

Top Manager Incentives

Along with Profit Leader, this is the most important management role. It is certainly the most challenging and carries the entire organizational infrastructure of the company.

The Top Manager is responsible for the harmonious functioning of the workflow as a whole, achieved by paying special attention to the transition from one job to another. As a result, the Top Manager is expected to ensure that the entire work of the company is well-organized and harmonious and that goals are achieved in a timely manner.

For the Top Manager, it is recommended that incentives be simple and based more on the overall success of the company than on individual achievements. Similar to the Profit Leader, we will not go into detailed recommendations here.

Incentives for Process Managers

It is recommended that Process Managers be encouraged for the following effects:

• Knowledge of and correct setting of the organizational infrastructure
• Teamwork in processes
• Effectively executed TaskPacks in the Arena
• Engagement in the Problem Box
• Engagement in the Idea Box
• Engagement in the Report Box
• Participation in the achievement of the goals
• Participation in the realization of plans

For Process Managers, a variety of incentives can be offered, including:

• Salary
• Benefits
• Additional Percentage of Salary
• One-Time Payment
• Free Days
• Vouchers
• Recognitions

Incentives for Supervisors

For Supervisors, it is recommended that incentives be offered for the following:

• Knowledge of and correct setting of the organizational infrastructure
• Teamwork in processes
• Effectively executed TaskPacks in the Arena
• Engagement in the Problem Box
• Engagement in the Idea Box
• Engagement in the Report Box
• Participation in the achievement of the goals
• Participation in the realization of plans

Incentive plan

Create a straightforward incentive plan that ties incentives to specific timeframes for each management role and present them clearly.