Performance Matters - Idea #12

A portion of every professional’s compensation should be variable. Doing so provides professionals with feedback as to how well they are performing and contributing to the enterprize. Doing so also provides important financial management to practice managers. Variable expense can be managed to respond to changing conditions. Fixed expense means managers can only go along for the ride - even if it means damage to the practice.

Use incentive compensation to discriminate between high value and low value contributors. There are differences in the contribution of team members that deserve to be recognized. There are differences in individual contributions over time. There are differences in what the practice and its patients need as various times. Incentive compensation provides a mechanism for constant fairness, challenge, and accountability.

The matter of incentive compensation will be come ever more important in the coming years. Changes are occurring fast and will occur even faster as the clock continues to tick.

Those who will be best able to weather the impending financial challenges of change will be those who start now to reorder their priorities and their practices. Now would be a great time to start...

Bob
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Performance Builders