Performance Management & Reward Systems| Practice Areas | Our Approach|
Outsourcing
Practice Areas
In order to meet the specific needs related to a type of
employee, such as sales positions or one type of compensation
program, such as base pay, the Wilson Group has five primary
practice areas:
sales compensation, executive
compensation, variable
compensation, base
compensation and performance
management/measurement.
This allows us to have flexibility in working with each client
in one or more specialized program or with a type of employee.
Within each of the five practice areas, our approach includes
development of reward strategies in alignment with our clients
strategic objectives. By creating a strategy that aligns the key
success factors of your business with the rewards and incentives
your company provides. Wilson Group has unique expertise in
developing total reward strategies and systems that focus on the
organization's key business drivers while building commitment.
This results in increased shareholder and employee value, driving
high performance for your organization.
An Integrated Approach to Reward
Strategy Development
To link reward systems with business strategies so that they
increase both stakeholder value and employee value, our
development framework integrates four perspectives:
- The competitive context. A new
basis for competing in today's marketplace is emerging. To
take advantage of it, we need to fully understand the core
drivers of success in your marketplace.
- The alignment with strategy and
key success factors context. This determines how the
organization will create a competitive advantage and build the
culture needed for long-term success.
- Human resource capabilities. All
HR programs need to ensure that the organization has the
talent and abilities to implement the strategy.
- Commitment through reward
systems. This provides the platform - including the systems,
processes and practices - necessary to build the commitment of
people to achieve success.
Wilson Group's Capabilities = Your
Competitive Advantage
Our powerful assessment tools, approaches to strategy
formulation, and in-depth industry and consulting experience bring
focus to each client and provide solutions to your company's
unique compensation problems. We have worked with many leading
high-performing companies to:
Assess existing programs and practices for gaining
alignment and commitment. Identify critical gaps and assess
how important filling these gaps will be to the organization. Establish
a reward strategy that fits the unique requirements of the
organization. Develop action plans to address priorities
and needs that are long-term focused and short-term specific.
Our work in developing a reward strategy and assessing the
effectiveness of your current programs is achieved with input from
senior managers, line managers, employees and human resources
managers. Together, we build a strategy that works.
Sales
Compensation
The sales function serves a critical role in determining the
success of the commercial enterprise. Sales generate the revenues
the organization needs to operate. The sales staff represents the
organization in the marketplace and identifies the fit between
customer needs and the organization's products and services. For
many organizations, the sales staff is the critical link between
the organization and its customers.
In high-performing companies, executives spend considerable
time and effort to make certain the sales function is organized,
staffed, trained and compensated in a manner that is consistent
with the organization's strategy. There is alignment between the
organization's needs and how the sales function operates. These
companies use a well-defined sales process that creates a
competitive advantage, such as the Science of Selling (provided
by Sales Research Institute, a Wilson Group strategic partner).
They are supported by sales information systems, such as Incentive,
which is available from Incentive Systems (another Wilson Group
strategic partner). These actions result in a greater commitment
to the goals of the organization and the ability to sustain market
leadership.
Aligning Reward Systems with Success
Factors
Wilson Group has unique expertise in aligning the total reward
system of the sales organization with its strategy and key success
factors. Our assessment tools, compensation designs, and in-depth
experience bring focus to your sales staff and meaningful rewards
for achievement. We have worked with many leading companies to:
- Define and articulate what they
need to succeed on an on-going basis;
- Assess how well the sales
organization is able to meet those needs; and
- Develop customized sales
compensation plans that communicate and reinforce critical
actions.
The marketplace for strong sales talent is always highly
competitive. However, it is often not just how well sales
representatives are paid, but how they are rewarded that is
critical to success. The organizations that are able to attract
and retain desired talent understand what is important to their
people and to the organization. They create opportunities for
individuals to earn attractive rewards by demonstrating
performance that supports the firm's strategy.
Collaboration Is Key to Success
We usually work in collaboration with representatives from
throughout the organization - from sales, marketing, finance,
operations and human resources departments. Together, we build
systems that work. Because of this collaborative approach, the
assessment and design process often reflects how the client wants
the sales organization to work. The process focuses on key
business drivers. It is success oriented and innovative. When we
transfer knowledge to our clients, they become committed to
successful implementation. In the end, our clients demonstrate
their desired results in top-line revenue and bottom-line
profitability. That is what winning is all about.
Variable
Compensation
High performing companies have one
thing in common - they create opportunities for their people to
share in the success they help create.
Variable compensation programs can be powerful mechanisms for
linking an organization's strategy with desired actions. Whether
the compensation is for teams or individuals, an entire
organization or a specialized group, for short-term or long-term
performance, delivered in cash incentives or stock options, it is
critical to align what is needed with how it is rewarded.
Variable pay programs are increasing in most organizations.
They are extending to lower levels, and their performance measures
are becoming better linked to individual, group and organizational
success. Organizations that use variable pay programs enjoy an
effective competitive advantage in the marketplace.
Determining the Right Approach for
Your Organization
The Wilson Group can identify what is needed for your variable
pay programs to succeed. Our assessment tools and analysis can
assist you in determining whether a variable pay program will have
the desired impact on performance. We examine measurement systems,
management support, performance management practices, culture and
trust, and other factors that are essential for success. Variable
pay is not appropriate for every organization. We will first
advise you whether you should proceed. If we find that variable
pay programs can work in your organization, we will work with you
to develop them.
Customize the Program to Your
Requirements
When variable pay programs are adopted from other
organizations, they often fail. Each organization pursues
different strategies, and has a unique culture and organizational
requirements. Wilson Group works with key representatives from the
organization to design variable pay plans that fit effectively
within the organization. We serve as design experts, educators and
facilitators for our clients. Our knowledge of - and ability to
apply - tools, methodologies, benchmarking data and frameworks is
based on the experience of successful companies. As a result, we
create high-impact variable pay programs, while helping clients
develop their internal capabilities to manage and improve them
over time.
By working with the Wilson Group, you can realize benefits that
go well beyond financial returns. You can increase your focus on
key performance issues, and strengthen the commitment to success
throughout your organization. You can enhance your ability to
compete and to succeed. Be careful what you measure and reward -
you will surely get more of it.
Executive
Compensation
The marketplace for strong
executive talent is always highly competitive. Positioning your
executive compensation competitively with the appropriately
defined talent market is an important step in attracting and
retaining key executives.
Equally, if not more important, than how much your executives
are paid is how they are paid. This drives organizational
alignment, improved performance and competitive advantage.
Executive compensation programs should be designed to answer
questions such as:
- What measures should be incorporated to ensure that
executive interests are aligned with those of key
stakeholders?
- What is the correct mix between base, short-term and
long-term compensation?
- Are the programs, measures, and outcomes driving the
executive actions and behaviors that you need to be
successful?
- How can the compensation levels be justified by the
performance achievements of the organization?
Choosing the Right System
While a comprehensive understanding of executive compensation
within your competitive marketplace is helpful, it is most
important that the programs we develop fit the client's culture
and business strategy and are attractive to the executive team, as
well as acceptable to key stakeholders. We will help you view
executive compensation through a new lens, unbiased and clear, so
that it can make a real difference in your business.
The Wilson Group has unique expertise in aligning the executive
compensation system with the strategy and key success factors of
the business. Our powerful assessment tools, compensation designs,
and in-depth experience bring focus to each client and provide
customized approaches to your unique requirements.
Aligning Reward Systems With Success
Factors
The Wilson Group has worked with boards and executives from
many leading companies to:
Assess the competitiveness of total compensation packages
for key executives, including base salaries, short-term
incentives, long-term incentives and perquisites; Design
short-term and long-term executive-incentive programs that are
linked to organizational performance and aligned with key
stakeholder interests; and Develop customized executive
plans that communicate and reinforce critical goals and
strategies.
Our work is usually performed in collaboration with both the
board and senior executives to ensure that objectives, measures
and outcomes are mutually agreed upon. Together, we build systems
that drive the performance needed to succeed, while bringing
integrity to the process.
Base
Compensation
A well-designed system for delivering competitive base pay to
your employees is a key element of any effective reward system
portfolio. While historically seen as a maintenance element or
even a "necessary cost" of doing business, companies
today realize that they need to demonstrate the value of this
significant cost.
A focused, streamlined base pay plan can greatly enhance both
the organization's operational effectiveness and its
attractiveness quotient. Sound base pay tools and practices will
provide a strong framework for integrating a variety of reward
programs, including variable pay, recognition and performance
management.
Organizations today share two conflicting realities:
- While competitive pressure to manage expenses is severely
limiting base compensation budgets, wages and salaries remain
one of the largest single operating line items - one that must
be effectively managed.
- The growing economy and tight labor market has made
attracting and retaining the best talent more difficult - and
more expensive - than ever.
The Wilson Group assists companies in identifying and
developing innovative ways to:
- Use limited salary dollars creatively;
- Respond to industry and geographic market trends and salary
movement;
- Reflect both organizational values and employee needs;
- Increase the involvement and accountability of line managers
to manage base pay;
- Keep the whole process simple to understand and administer; and
- Encourage development and expanding capabilities.
Determining the Right Approach for
Your Organization
The Wilson Group works hard to understand your company - its
unique business, culture, values and goals - beginning with an
assessment and analysis process that helps us collaborate with you
to determine the most appropriate approach to base compensation.
We assist in defining your competitive market position, and
internal pay trends and issues, while looking closely at your base
pay delivery system to determine if it supports your company's
direction.
We work jointly with management and other key individuals to
build tools for describing, categorizing and quantifying the value
of your jobs in relation to each other and to competitive markets.
Our approach focuses on identifying and describing what you and
your customers want and need from your employees. Then we
construct systems in which people are paid effectively for
"doing the right thing."
Keys to Success
By working with clients from a variety of industries, we have
learned that there are a few common success factors that make base
compensation programs highly effective. These are:
- Pay for what your organization
truly values - the skills, behaviors and results that support
your growth and success.
- Integrate the base pay program
closely with other elements of your reward system and the
whole will be much greater than the sum of its parts.
- Communicate the program and
train managers and employees so that they share an
understanding of program value and will be more likely to use
it effectively.
- Keep the system dynamic by
making periodic adjustments in tune with the external market
and, most importantly, changes in your business strategy.
The Wilson Group's skilled, flexible and collaborative style
will yield an approach to base pay that is based on these success
factors in order to enhance the competitiveness, effectiveness and
value of base compensation.
Performance
Management/Measurement
Many companies have performance
management programs, but few are satisfied with them. There are
perhaps as many reasons for this as there are organizations. Many
frequently see the process as too time consuming for the benefits
that result, others seek to understand what other companies do and
to use the latest "gimmick" in hopes of improving the
value of the process. There is no single right approach, but there
are several elements that make these processes effectivefor
both the organization and its members.
The Primary Elements of Successful
Performance Management
In working with companies in a wide variety of industries and
having conducted numerous research efforts in this area, we have
found these fundamental elements occur in successful programs:
Employees know what they are responsible for and see how their
work is linked to the broader strategy, goals and priorities of
the organization. Managers help to translate company goals into
individual actions, then provide people with the coaching and
assistance to make them successful. People know how they are doing
on a regular basis. They often receive and discuss frequent,
ongoing feedback that indicates how they are doing. There are
clear consequences to ones actions. Positive consequences can
be higher than average merit pay increases promotions, special
bonus awards and other forms of non-cash recognition. Negative
consequences can include performance warnings. The process is
simple, supported by consistent tools and procedures that are
legally defensible. The human resource department is not focused
on compliance, but provides the tools, training and assistance
needed for managers to fulfill their responsibilities.
What the Wilson Group offers:
Our collaborative approach to performance management goes beyond
the simple view of this process as a training intervention.
Rather, our approach builds commitment, utilizes tools that fit
the style of the organization and develops programs as a means to
increase understanding, commitment and excitement about the
process. Therefore, we can provide our clients with:
- An assessment of their current programs and practices,
- A process to develop a performance management program to fit
your unique requirements and style,
- A set of tools, adapted to the process, that provides
assistance and consistency,
- Training of executives and managers in their custom
developed process,
- Assistance with the implementation and monitoring of the
progress and
- Recommendations on the technology needed to support the
program over time.
The Wilson Group feels that there are effective performance
management systems. Often a key characteristic of high performing
organizations rests with the alignment of an organizations
strategy, performance management process, people management
practices and rewards and recognition. Taken as a total framework,
they provide an unparalleled approach to establishing enduring
competitive advantage.
Need more information? Please e-mail us at info@wilsongroup.com. |