Senior Management Incentives in the News

Strategic incentives are a good idea at the top.  But getting everyone one in a large company on the same page is difficult, and it doesn’t always work.  Here are a few current examples:

  • United Airlines’ CEO Oscar Munoz reportedly has $500,000 of his bonus tied to customer satisfaction questionnaires.  You’d hardly know it from the nearly unbelievable physical ejection of a passenger, and United’s follow-up to the incident.  Some background:  In 2010, United began a botched merger with Continental.  In 2012, United had 43% of all airline consumer complaints, and has been a leader in complaints since then.  On January 14, 2016 Bloomberg’s article, “United’s Quest to be Less Awful” was published.  Clearly things have needed to change for a long time.
  • Apple’s Tim Cook made less money last year (only $10 million in salary and bonus!) than the year before.  That reflects the downward trend of the iphone business, which might pick up this year with a redesigned phone.  But Cook isn’t betting on riding the iphone into the future.  As in the past, the company’s prospects are secret, but you can bet they are working hard on innovation and disruption in other industries, continuing the path that Apple has taken throughout its history.  That’s what his focus and challenge is, and what his future bonuses will depend on.
  • Ford Motors’ board wants CEO Mark Fields to accelerate the company’s transformation and profitability beyond SUVs and pickups.  They’ve put into place a $2.5 million “strategic incentive grant” designed to reward both innovation and growth.  He received a reduced bonus last year as revenue and quality slumped.  The board realizes that making the core business more profitable won’t be enough — they need innovative solutions for the future.

Obviously, sometimes incentives get everyone on the same page, and sometimes they don’t.  Even the largest companies can’t seem to nail it, in part because transforming such large companies is a significant challenge.  But significant incentives can provide significant focus at the top.

What kinds of incentives are you using at the top?  Are they operational or strategic?

© Copyright 2017  Bob Legge

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Bob Legge provides organizations with the ability to exceed their most ambitious goals.  I work with leaders of Fortune 500 companies, small and mid-size companies, nonprofits, education, and government. Together, we drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value.  Contact him at  bob.legge@leggecompany.com

Are You Enabling Mediocrity in Your Organization?

Mediocrity is bad for a number of reasons.  Workplaces that allow mediocrity also de-motivate high performers.  And tolerating mediocrity reduces an organization’s energy and productivity, as well as employee engagement and satisfaction.

No one hires good people every time.  You will hire false positives.  The key is what you do about it, and the ones to be concerned about are the mediocre hires.  The truly bad new hire — who does not perform well or doesn’t fit the culture — can be addressed fairly quickly, but a mediocre hire will often be allowed to continue on.  Yet the difference in performance between a mediocre performer and a high performer is significant; and the difference adds up over time.  So address the mediocre performers:  Develop their skills to be good, solid performers; or move them to a position that better fits their abilities; or separate them.  Both of you will be happier in the long-run.

I’m not saying that all employees should be high-performers, but the majority of your people need to be solid contributors, and wanting to learn and grow.

Watch for my Executive Insights newsletter for many more tips on how to address mediocrity in an organization.

© Copyright 2017  Bob Legge

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Bob Legge provides organizations with the ability to exceed their most ambitious goals.  I work with leaders of Fortune 500 companies, small and mid-size companies, nonprofits, education, and government. Together, we drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value.  Contact him at  bob.legge@leggecompany.com

Creating an Anticipatory Set

When something bad is about to happen, people will get tense.  When beginning a competition, people will become focused.  When preparing for a happy occasion, people will become relaxed.  They anticipate what the event will entail and set their own expectations and body language in preparation.

Effective teachers know this, and they will prepare their students by getting them ready to learn.  They call it the “anticipatory set.”  It makes learning more effective for the students, and easier for the themselves.

Leaders and managers can do the same thing, by creating conditions in which their people perform at higher than normal levels, depending on what the challenge is.  From high-stress to low-stress situations, an anticipatory set improves outcomes.

What is the anticipatory set that you create for your weekly staff meetings, your one-on-ones, and other key interactions?

Powerful Ideas to Improve Your Leadership

From many years of coaching executives, here are five pointers for becoming a better leader:IMG_4487

  1. Hire people who are better than you in their discipline; not subordinates.
  2. Focus yourself on key priorities — move a few things forward a mile rather than a lot of things forward an inch.
  3. Focus your people on results; not activities.
  4. Demand commitment; not compliance.
  5. Encourage and reward open, honest, and insightful thinking; not going with the flow.
  6. Expect people to fail now and then. Mistakes are part of learning.

© Copyright 2017  Bob Legge

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Bob Legge provides organizations with the ability to exceed their most ambitious goals.  I work with leaders of Fortune 500 companies, small and mid-size companies, nonprofits, education, and government. Together, we drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value.  Contact him at  bob.legge@leggecompany.com

Do This Before the End of February

It’s February and you’ve got most of the year still ahead.   See if you can answer these questions clearly and briefly:

  1. What is your strategy?
  2. What is the over-arching vision you have for your company?
  3. What is the major theme, or themes, you want your people to run hard at this year?
  4. What are your top three priorities for the company?

Your people want to know how to move forward, what to base their day-to-day decisions on, and how to know they are on-track.  If you’ve put together a simple roadmap or strategy, it will be found posted in their work areas, cubicles and offices.  More complex strategies are in PowerPoint presentations or binders and they rarely get looked at.  So if you can answer the four questions above, make sure your people know the answers too.  If you can’t answer them, you need to get to work.  As I said, most of the year is still ahead.

© Copyright 2017  Bob Legge

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Bob Legge provides organizations with the ability to exceed their most ambitious goals.  I work with leaders of Fortune 500 companies, small and mid-size companies, nonprofits, education, and government. Together, we drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value.  Contact him at  bob.legge@leggecompany.com

Three Imperatives of Profitable Growth

From over 30 years of working with organizations of all sizes and in many industries on improving business outcomes especially growth and profits:

  1. The most valuable part is having a plan that focuses on both distinctive strategy and operational excellence.
  2. The hardest part is sticking to the plan by following-up on performance commitments including position accountabilities, projects, and key operating measures.
  3. The chief downfall is not aligning the organization with plan. Successful companies have one plan with everyone understanding their role in getting results.  Also-rans may have a plan, but they let organizational functions and departments do their own thing.

© Copyright 2017  Bob Legge

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Bob Legge provides organizations with the ability to exceed their most ambitious goals.  I work with leaders of Fortune 500 companies, small and mid-size companies, nonprofits, education, and government. Together, we drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value.  Contact him at  bob.legge@leggecompany.com

What’s Your Point?

Many people tell me that they like my On the Same Page emails because they are brief, to-the-point, and practical.  I try to do the same thing when I speak.  Because I learned some time ago that the very best leaders I’ve worked with don’t need a lot of words — they express their thoughts effectively and confidently by being terse.  In comparison, I see people in meetings get long-winded, going off on tangents, telling stories, or even repeating what they say.

I’ve found that the longer one talks, the less they actually communicate.   That’s either because their message gets lost in all the words, or they don’t really know what their message is.

When you’re clear about your message, you are able to say it briefly.  Work on this for yourself and for your team.  It will help make meetings shorter and more effective.  A tip:  Ask, “What’s your point?”

© Copyright 2016  Bob Legge

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Bob Legge provides organizations with the ability to exceed their most ambitious goals.  I work with leaders of Fortune 500 companies, small and mid-size companies, nonprofits, education, and government. Together, we drive strategy, lead successful change, develop high performance cultures, improve individual and organizational performance, and produce faster, sustainable growth and value.  Contact him at  bob.legge@leggecompany.com