Thursday, January 13, 2005
Claim Your New Idea Award Here!!
Opportunity: As the New Products/Services team gears up, we know that our ‘team’ actually includes everyone on staff—it’s up to us all to create, and contribute, ‘new ideas’ to our organization. But we are also discussing how employees should benefit directly from their contribution—as in ‘show me the money.’ Or, as my daughter’s jazz mentor advises, ‘baby, follow the Benjamins.’
We ought to reward employees for new ideas. So—what kind of rewards should we offer for ideas that lead to new products? 1% of gross sales of new products? 10%? Over what period? (A new product make take several years to reach full potential). Should just the creator be rewarded? How about the folks who work to bring a new product to market?
Help us figure this out. What motivates you? What is fair? We really don’t want to decide this in a vacuum—we want the WHOLE team to help decide, and this is your chance to give us some input.
We ought to reward employees for new ideas. So—what kind of rewards should we offer for ideas that lead to new products? 1% of gross sales of new products? 10%? Over what period? (A new product make take several years to reach full potential). Should just the creator be rewarded? How about the folks who work to bring a new product to market?
Help us figure this out. What motivates you? What is fair? We really don’t want to decide this in a vacuum—we want the WHOLE team to help decide, and this is your chance to give us some input.
# posted by Jon : 10:48 PM
Comments:
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Gotta be net. Gross produces a big pie but bad vibes for the bottom line if the expenses skunk the profits. Term: shorter of product life cycle or 5 years. Can't ride the train forever. Distribute like Super Bowl shares. Team implementing votes who receives and how much. Soooo egalitarian.
$$Man
$$Man
# posted by 
: 1:53 PM
: 1:53 PM
Good points on either side. Perhaps there is a compromise. Gross revenues could be a basis for the amount of the bonus provided the idea is planned to generate a net profit. Gross revenues are not the measure of success of an idea if it costs more to produce the product than the revenue earned. In the same vein, if threshold return standards and rigorous analysis during the pre-implementation phase are followed then the individual receiving the bonus should not be penalized for poor implementation (unless of course they are also the implementer.)
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# posted by : 8:56 AM
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