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First, set the directive and goals. Then set the incentive structure to achieve them. The goal-setting process clarifies direction and eliminates confusion, unclear motives and misguided efforts. When you use independent resources to guide the process, they often add credibility and subjectivity.
When workers can see dollar signs and that goals are clearly stated, their mindset changes and they become more creative. Include as many employees as possible as part of an incentive-based structure. Incentive Compensation (IC) should reward performance and teamwork, which produces results.
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