Imagine a world where individual managers of departments or restaurants weren't compensated on sole performance of the store or group, but instead . . . ONE LEVEL HIGHER.... perhaps a specific division or district in which work groups would have to be transparent and share best practices. Everyone would be focused and probably performance driven - sharing ideas and innovations.
I know for a fact that Prudential Retirement does this . . . and it kind of makes proud. Go PRU!
The incentives that are best at spreading innovative practices reward performance neither at the individual level or at the company level. They operate one level up from the level of greatest individual control. In Chet’s case, that means shifting the weighting in the restaurant managers’ bonus
formula from single restaurants to districts. That way,managers not only have an incentive to innovate, they have an incentive to help spread those innovations to sister units.