Steve Kerr - Reward Systems Part 2

Creating Effective Reward Systems In this episode of The Innovation Show, we welcome back Steve Kerr to discuss how to create positive reward systems within organizations. Steve details the 'bullseye exercise' and emphasizes the importance of defining performance in actionable terms. He shares insights from his experience at GE, covering the implementation of the 'wing to wing' approach, the impact of stretch goals, and strategies for devising comprehensive metrics. Throughout the conversation, Steve highlights the necessity of aligning rewards with business objectives and fostering a culture of candor and innovation. 00:00 Introduction and Overview 01:12 Defining Performance in Actionable Terms 01:28 The Bullseye Exercise 02:47 Connecting Incentives and Rewards 04:25 Challenges in Measurement and Bureaucracy 05:35 Real-World Examples and Cost Analysis 07:13 The Importance of Candor and Rational Behavior 14:04 Stretch Goals and Organizational Culture 23:06 Challenges in Rewarding Employees 23:23 Understanding Quartiling and Quotas 24:07 Jack Welch's Bottom 10% Rule 29:31 Financial and Non-Financial Rewards 31:54 The Importance of Timeliness in Rewards 37:31 Wing to Wing: Seeing Through the Customer's Eyes 42:26 Conclusion and Final Thoughts On the Folly of Rewarding A,While Hoping for B https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Motivation/Kerr_Folly_of_rewarding_A_while_hoping_for_B.pdf Aidan McCullen, Steve Kerr, reward systems, employee behavior, BF Skinner, dysfunctional behaviors, fixing reward systems, CEO memo, leadership development, GE, Goldman Sachs, ultimate rewards, boundaryless organization, performance measurement, innovative culture, healthcare system, preventive care, stretch goals, Jack Welch, candid culture