Ruth spent 25 years in the music industry. She started Mordam Records in 1983 and built it to a $10 Mil distribution company. Today, Schwartz is an internationally certified, business leadership coach, motivational speaker, author and the facilitator of Business Mastermind Groups. She owns High Performance Advocates, a management development and leadership coaching company. Ruth has been trained by the Academy of Coaching and NLP and programs focused on Tribal Leadership and High Performance Organizational designs. She is trained in DISC and other assessments as well as trained by state of the art internet marketing gurus in developing expertise monitized online. She is an innovative thinker and have a talent of simplifying complicated issues of both the personal and business variety. She understands the fortitude it takes to be in business. That, along with many years in sales, marketing and distribution make her different than many other business coaches.
And it is easy as your imagination.You can create it to fit your culture. That said, I believe that the biggest incentive is to tie compensation to the profitability of the unit.
1) Be sure to include everyone who touches outcomes.
2) Create a profit share by deciding how much you want to land in the hands of your employees. Be sure to use a net profit and be sure to account for future capitalization and cash flow. (Typically between 5-25%)
3) Divide the profit share by salaries or some other very obvious criteria. In other words, don't make it arbitrary or people will be dis-incentivized.
4) The profit share is always paid to the group, not the individual.
4) Be very involved in teaching net profit creation. They will need business acumen.
5) While stock options and employee ownership may be a future goal, a profit share let's people hit the ground running, creates excitement right now, teaches needed business and finance skills and adds a fabulous team culture. Work with your unit to create the options or ownership they want later when they understand the principles and can help design the rules and criteria.
I practiced this for over 20 years and the results were phenomenal. People grew the business, put cash in everyone's pocket, created an exciting environment and was in real time, not future time. It is magic.
This is a quick answer. Let me know if you need more. I'm happy to discuss.
High Performance Advocates