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Compensation

Q: Is it possible that an incentive plan was good during robust economic times, but isn’t good when the economy is in serious recession, like now?

A: Yes. If the plan is inherently well designed, the big change that’s required is to reset performance objectives, particularly quantitative ones. These need to be realistic to avoid setting up employees for failure. Nothing is more demotivating than unattainable targets. The challenge is determining what’s realistic!

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Following an eye-opening employee engagement survey and as part of an overall strategic planning exercise, the managing partner of a regional accounting firm engaged PSG to conduct a comprehensive series of integrated mini-projects. The first step was to conduct 360o reviews for all the partners. The goal – to identify the strengths and areas for improvement and then leverage the results into a stronger, more focused organization. This would reflect strengths, optimize the talents of both partners and staff and, at the same time, recognizing gaps and weakness.

Following the individual feedback and coaching to partners, we worked with the partners to develop the strategic plan, addressing the following key issues:

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In the last few months of 2009 an into early 2010, we worked with a giant in the entertainment and media world, grappling with the challenges brought on by the recession and a rapidly changing industry:

  • Advertising down across the board
  • Newspaper and magazine circulation in the doldrums
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