It Pays to be Strategic

People's behavior adapts in response to incentives by doing what is in their best interest, not the original intent behind them.

If a bonus is awarded solely on business performance, it doesn't matter whether the employees do poorly, they will still receive a nice bonus.

On the other hand, if a bonus is paid based on individual contribution alone, it creates a me-centered culture because the company's furtherance is not in their best interest.

Pay bonuses based on business performance and individual contributions.

Incentive programs must align with your strategy if you want to transform an organization.