Interview Tom Foster (Management Skills Blog) – Part 5 of 6

Q5 Dr Lisa: Could you explain about the “felt fair pay” curve for the time span of discretion that is universal across cultures, currencies and continents?

Tom: Felt-Fair-Pay is probably the most controversial, yet scientifically documented finding in the research of Elliott Jaques. Here's the way it works.

Ask someone what they feel is Fair Pay for the work they perform. This question is a little tricky, because, as you might imagine, there are many influences on this response. First, you have to discuss the work. Next, you have to get the person away from their co-workers, away from their spouse and then ask, "What do you feel is Fair Pay for the work you perform?"

When Jaques plotted the points based on Time Span and Fair Pay, they produced a curve that was reproduced in study after study over a period of 12 years in multiple countries under different currencies. Uncanny.

The implication for this finding? If I can determine the Time Span of the role, I can calculate the Felt-Fair-Pay.

..to be continued.

Here's to maximizing YOUR profits!
Dr Lisa Lang
(c)Copyright 2008, Dr Lisa, Inc. All rights reserved.

Are you a Vistage/TEC member who would like your team to hear my speech? Here it is: NEXT Maximizing Profitability Event (no charge): December 1, 2008 in Denver from 1:00 to 5:00 pm at the Science of Business Training Center. More information at http://www.viable-vision.com/. You can register by fax or on-line.

Interview Tom Foster (Management Skills Blog) – Part 4 of 6

Q4 Dr Lisa: We find that incentives or bonus programs only useful in a small number of cases. Are management incentives or bonus compensations schemes ever appropriate in your opinion?

Tom: I hear managers, especially in the sales arena decry that their best salespeople are only motivated by money and the best system is straight commission.

Okay. Let's say, I buy that. Let's say there are people who are only motivated, or mostly motivated by money. And what's more, let's say I need that kind of person on my sales force. I want someone who is willing to work three extra hours every day, make that extra sales call, do that last pitch.

Have you ever met a salesperson like that? I have. And what impact do they have on the rest of the organization? My experience is that they are prima donnas and wreak havoc on the rest of my people and my company culture.

BUT I NEED THEM.

Okay, I need them. But they are not an employee. They are not a team player. They are self-employed. Willing to put their compensation at risk, eat what they kill. So pay them like they are self-employed, on a 1099. And keep them the hell away from the rest of my people..

..to be continued.

Here's to maximizing YOUR profits!
Dr Lisa Lang
(c)Copyright 2008, Dr Lisa, Inc. All rights reserved.

Are you a Vistage/TEC member who would like your team to hear my speech? Here it is: NEXT Maximizing Profitability Event (no charge): December 1, 2008 in Denver from 1:00 to 5:00 pm at the Science of Business Training Center. More information at http://www.viable-vision.com/.
You can register by fax or on-line.

Next Mafia Offer Boot Camp -- is December 2, 3, 4 2008 in Denver.