Performance improvement is driven by learning from the best and adapting what they do to your business context, not by applying business theory. Aldi is a great example.
The point about the carpark slope made me smile. Reminded me of a 90 minute call with the archive studio for a music company... where they went on about the slope and floor material!
It feels a lot like Aldi's own take on 'unreasonable hospitality'. Probably explains why they've boomed so notably across London.
Thoughts on the remuneration scheme Kenny... could that ever work in professional services?
Thanks Joel. Personally, I think the remuneration scheme would work in professional services. At the least, I always thought bonuses should be team based rather than individual and argued for this internally when I was in leadership. Bit of a culture clash though. Some partners were very much driven by the competitive element - winning the pitch/ closing the deal etc. Others much more motivated by delivering projects over time.
In PwC Canada they had 3 remuneration packages based on whether your expectation was to 'deliver', 'sell' or 'deliver + sell'. I felt that gave more flex and clarity.
At my boutique they had just one salary for the grade. Bonus was split evenly based on balanced score card rating. Additional bonuses were for genuine business differentiators e.g., introducing/ bringing in a new sale. I felt this approach was much clearer. Skipped the nonsense you heard in roundtables.
Interesting - at one time there was an attempt in the UK firm to draw a distinction between between Directors who sold and those who delivered. Never really landed though so it was just quietly ditched. I think very hard to attribute sales numbers to an individual when dealing with large complex organisations such as PwC clients. The team approach to attributing the credit much better.
The point about the carpark slope made me smile. Reminded me of a 90 minute call with the archive studio for a music company... where they went on about the slope and floor material!
It feels a lot like Aldi's own take on 'unreasonable hospitality'. Probably explains why they've boomed so notably across London.
Thoughts on the remuneration scheme Kenny... could that ever work in professional services?
Thanks Joel. Personally, I think the remuneration scheme would work in professional services. At the least, I always thought bonuses should be team based rather than individual and argued for this internally when I was in leadership. Bit of a culture clash though. Some partners were very much driven by the competitive element - winning the pitch/ closing the deal etc. Others much more motivated by delivering projects over time.
Yeah, a difficult call.
In PwC Canada they had 3 remuneration packages based on whether your expectation was to 'deliver', 'sell' or 'deliver + sell'. I felt that gave more flex and clarity.
At my boutique they had just one salary for the grade. Bonus was split evenly based on balanced score card rating. Additional bonuses were for genuine business differentiators e.g., introducing/ bringing in a new sale. I felt this approach was much clearer. Skipped the nonsense you heard in roundtables.
Interesting - at one time there was an attempt in the UK firm to draw a distinction between between Directors who sold and those who delivered. Never really landed though so it was just quietly ditched. I think very hard to attribute sales numbers to an individual when dealing with large complex organisations such as PwC clients. The team approach to attributing the credit much better.