Monday, April 25, 2011

Gains vs. Losses

So which one is it and how do you react when it happens? Year-end for businesses can happen any time of the year. How do you keep your team in the loop about progress towards goals – sales, profits, bonus thresholds? It is important to ensure that everyone knows where they stand in relation to the organization’s goals so that there are no surprises.

Here are a few tips to avoid surprises:

a. If you have a convoluted formula for figuring out the bonus thresholds, make sure new hires are well-versed (or at least taught) the calculation.

b. Host quarterly, if not monthly, meetings to review the numbers with all stakeholders, and provide the benchmarks so that everyone can see what needs to be made up or if they are ahead.

c. Keep projections realistic.

It’s the surprise that hurts. To avoid losses in the people column, take time with the information that triggers on the dollars & cents of the job.

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