Steps of Strategy Execution Evolution – Employee Goal & Compensation Alignment

Employee Goal & Compensation Alignment

What This Means

Employees’ personal goals articulate the organization’s exact expectations for each employee.
To be most effective, personal goals should be aligned to strategic objectives and measures
Achievement of personal goals is often tied to incentive compensation and bonus plans, so proper development and alignment is critical to driving desired behavior.

The Challenges

Aligning personal goals to strategy requires that strategic objectives first be deployed all the way to front-line employees
Handling the changing expectations of employees not accustomed to having pay linked to Scorecard performance

How to Approach This Step

Aligning personal goals takes time. Naturally, the process will lag behind that of scorecard cascading, which provides the strategic framework to which personal goals will later link.
After scorecards have been cascaded and constructive business reviews have been integrated, consider linking the system to compensation.
By first reinforcing the behaviors and proving the system drives results, linking it to compensation will be viewed as a positive change (e.g. it will be a “carrot” instead of a “stick”).
Employee Goal Development & Alignment Coaching