Vadim Kotelnikov    

Reward Systems Case Studies

Increasing Performance and Creating Happier Employees


Business e-Coach  Success 360  Kore 10 Tips


Three Greatest Rewards of the Universe

According to Peter Riggs

❶  To do the thing you enjoy doing

❷  Recognition – in all its various forms  >>  Example

❸  Money – only becomes a prime motivator if there is no sufficient of it coming in to meet one's immediate daily requirements  >>>

The Silicon Valley's Approach to Gain Sharing

Five Beneficial Effects

  It makes technical people greedy – as a result, people won't waste their time on ideas that can't be commercialized... More

Two Rules of an Effective Reward System

❶  Strategic Alignment : Carefully align your reward system with the values, vision, mission and strategic intent of your organization.

❷  Practicability: Reward performance and behavior that is under employees' control.

How To Turn a Business Cause Into a Crusade

  • Reward activities that advance the crusade and punish those that don’t... More

The GE Leadership Effectiveness Survey (LES)

  • Recognizes and rewards achievement. Creates positive / enjoyable work environment... More1

  Inspirational Leader: 10 Roles




The Power of Motivation  ●  Incentive Motivation  ●  Attitude Motivation

Strategic Motivation  >>  Strategic Motivation System

Performance Management

Performance Measurement Systems  ●  Employee Performance Management

Employee Empowerment  ●  Employee Satisfaction


Reward Systems  >>  Silicon Valley Firms  ‖  Give a WOW

Innompic Games  >>  Winners  >>  WOW awards

Dell: Fast-Paced Flexible Culture  >>  Culture of Owners

Toyota Production System (TPS)  ●  Canon Production System (CPS)


Why Reward Systems?

The only way employees will fulfill your dream is to share in the dream. Reward systems are the mechanisms that make this happen. "However, reward systems are much more than just bonus plans and stock options. While they often include both of these incentives, they can also include awards and other recognition, promotions, reassignment, non-monetary bonuses (e.g., vacations), or a simple thank-you."5

"You get more of the behavior you reward. You don't get what you hope for, ask for, wish for or beg for. You get what you reward." ~ Michael le Boeuf

You Get What You Reward

The greatest management principle is that the things that get rewarded get done. "You get more of the behavior you reward. You don't get what you hope for, wish for or beg for. You get what you reward."7

When your employees do hit the target and meet a stretch standard you set for them, reward them immediately. Never stall. By doing this, you help employees directly connect the reward with behavior and higher performance they've attained.4 "Fail to reward the right behavior and you will most likely get the wrong results."3

Link Pay with Performance

Create heroes in each role and link pay with performance.  Create performance-related broad bands for pay within each role. Overlap bands for pay vertically to give an opportunity to a high-performing employee to earn more than his or her supervisor. This will help high-performing employees who love what they do not to seek to moving to the next rung on the ladder.

Stimulating Entrepreneurial Environment

Reward structures that provide a high upside for a breakthrough success and at the same time a downside for noble failures help to encourage managers to inspire intrapreneurs and stimulate an experimentation-friendly entrepreneurial environment.

Gain Sharing

High-growth companies use equity, phantom stock, and royalties as a way of sharing the wealth generated by new technologies. Instead of actually giving people stock in the company, you give them a promise to pay them a cash bonus at some future point equal to a certain percentage of the company's equity.



Rewarding Idea Generation

Recognition and rewards are fundamental elements of any successful Idea Management program. They perform a number of important roles. Most programs now provide a mix of corporate recognition, career advancement and trinket-style gifts... More



Case Studies Dell

In order to create a culture of independent owners, Dell decided to reward employees around a matrix of Return on Invested Capital (ROIC), and growth; higher performance directly correlated to higher ROIC, which came back in the form of higher compensation... More

Case Studies Fidelity Investments

At Fidelity Investments commitment to Kaizen (a continuous improvement mindset and strategy) is reflected in its performance management and compensation systems... More




Sam Walton's rules for buiding a great business

A paycheck and a stock option will buy one kind of loyalty. But all of us like to be told how much somebody appreciates what we do for them.

Sam Walton




Winning Corporate Culture Download PowerPoint presentation, pdf e-book


1. The Centerless Corporation, by Bruce A.Pasternack and Albert. J. Viscio

2. Driving Growth Through Innovation, Robert B. Tucker

"Reward innovative behavior intrinsically and extrinsically. Reward through recognition."

3. Motivate to Win, Richard Denny

4. How To Motivate Every Employee, Anne Bruce

5. Leading on the Edge off Chaos, Emmet C. Murphy and Mark A. Murphy

6. Four Keys to Great Managers, The Gallup Organization

7. How To Motivate People, Michael le Boeuf

6. Recruiting Q&A: IDEO. Beth Strong


9 Signs of a Losing Organization

Henry Ford advice

Make the best best quality of goods possible at the lowest cost possible, paying the highest wages possible.

Henry Ford

Ford Moror

Jack Welch advice business quotes

Provide rewards

for the soul and for the wallet.

Jack Welch


Mahatma Gandhi advice quotes

It is the quality of our work which will please God and not the quantity.

Mahatma Gandhi

Steve Jobs advice quotes

The journey is the reward

Steve Jobs