pay for performance
DESCRIPTION
TRANSCRIPT
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PFP PFP -- Where to start?Where to start?PFP PFP -- Where to start?Where to start?
1. Determine the performance objectives. 2. Determine the payment portion. 3. Define how it works.4. Add, drop, change, and replace PFP programs
at will.5. Rules?
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Sales Associates Sales Associates Sales Associates Sales Associates
Performance Objective? Increase be-backs.
Payment? $10 per percentage point increase in special request
ratio over base.
How It Works: • Monthly.• Information from CCC daily sales.• Pay above base.
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Sales Associates Sales Associates Sales Associates Sales Associates
Performance Objective? Expand the house call program.
Payment? $100 per house call over base.
How It Works: • Monthly.• Salesperson effectiveness.• Pay $100 per house call over base.
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Sales Associates Sales Associates Sales Associates Sales Associates
Performance Objective? Increase sketching.
Payment? $5 per sketch drawn over previous month.
How It Works: • Monthly.• Use salesperson effectiveness to track.• Weekly demonstration.
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Sales Associates Sales Associates Sales Associates Sales Associates
Performance Objective? Build email list.
Payment? $1 per email.
How It Works: • Pay period.• Track using e-Marketing Central
or manual tracking.
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Sales Associates Sales Associates Sales Associates Sales Associates
Performance Objective? Improve focus on dropped items.
Payment? $10 - $500 per item or group.
How It Works: • Pay period.• Spiff items on auto markdown (AMD).• New spiff system in v 12.0.
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Sales Associates Sales Associates Sales Associates Sales Associates
Performance Objective? Make house calls easier.
Payment? 125% of mileage.
How It Works: • Submit house call expense report.
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Sales Team Sales Team Sales Team Sales Team
Performance Objective? Increase team Warranty / Fabric Protection / Mattress Pad
close rates.
Payment? $100 per salesperson.
How It Works: • Monthly for hitting targets.• Daily sales report in Customer Care
Center.
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Sales Team Sales Team Sales Team Sales Team
Performance Objective? Exceed written goals at target margin.
Payment? Vacation time.
How It Works: • 1 extra day per month accessed quarterly.• CCC goal maintenance.• Track with CCC sales goal report and daily sales.
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Sales ManagerSales ManagerSales ManagerSales Manager
Performance Objective? Increased written and delivered goals.
Payment? 1% of sales on amount over base.
How It Works: • Monthly for exceeding written and delivered goals.• Sales performance for the team.• Minimum margin must be achieved.• $10,000 above target = $100 bonus.
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Sales ManagerSales ManagerSales ManagerSales Manager
Performance Objective? Increase ALL core metrics.
Payment? $1,000 in-store voucher.
How It Works: • Quarterly • Salesperson effectiveness report in CCC.• Average sale x close rate traffic and
performance index.
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Sales Manager and Buyer / Inventory Sales Manager and Buyer / Inventory Manager Manager -- Combined Combined Sales Manager and Buyer / Inventory Sales Manager and Buyer / Inventory Manager Manager -- Combined Combined
Performance Objective? Keep inventory to sales within a responsible range.
Payment? Car allowance.
How It Works: • Quarterly average.• Inventory to sales stays between 14-18%.• Car allowance of $500 per month.• Track on financials.
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Buyer / Inventory ManagerBuyer / Inventory ManagerBuyer / Inventory ManagerBuyer / Inventory Manager
Performance Objective? Increase GMROI.
Payment? Percentage of the value of increase over base.
How It Works: • Quarterly. • Pay for achieving a 10 cent improvement. • Figure by averaging financials for each month.
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Buyer / Inventory ManagerBuyer / Inventory ManagerBuyer / Inventory ManagerBuyer / Inventory Manager
Performance Objective? No delay in displaying merchandise.
Payment? $100 dinner certificate to a favorite restaurant.
How It Works: • Monthly, at random time.• Merchandise to display report.
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Buyer / Inventory ManagerBuyer / Inventory ManagerBuyer / Inventory ManagerBuyer / Inventory Manager
Performance Objective? Move dogs faster.
Payment? Free furniture.
How It Works: • Semi-annual.• AMD efficiency.• Pick of any piece of merchandise
in level 5 or 6.
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Controller / Administrator Controller / Administrator Controller / Administrator Controller / Administrator
Performance Objective? Make extra profit from administrative department.
Payment? A proportion of profitability gained.
How It Works: • Quarterly.• Allow control over some expenses.• Pro forma or budget and timely financials to track.• Split a proportion of profit gained.• Money and a percentage of sales.
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Controller / Administrator Controller / Administrator Controller / Administrator Controller / Administrator
Performance Objective? Increase payment terms and stay current.
Payment? Paid time off.
How It Works: • Let the controller negotiate.• Fifteen extra days = 15 hours of paid time off.
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Controller / Administrator Controller / Administrator Controller / Administrator Controller / Administrator
Performance Objective? Maximize credit or debit card awards responsibly.
Payment? Percentage of award points or percentage of cash back.
How It Works: • Find the most beneficial cards for your needs. • Must be kept current and incur zero interest.
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Controller / Administrator Controller / Administrator Controller / Administrator Controller / Administrator
Performance Objective? Increase cash flow.
Payment? $1,000 cash.
How It Works: • Annual bonus.• Exceed quick and current ratio targets.• Use a pro forma (budgeted) financial statement. • Guide organization.
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Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery
Performance Objective? 100% inventory accuracy.
Payment? Bowling and beer night.
How It Works: • Weekly cycle inventories (bar code) 100%.• Paid out monthly.• Treat entire warehouse staff.
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Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery
Performance Objective? Recognize hard workers.
Payment? $50 cash.
How It Works: • Weekly.• Based on transfer and/or receiving scans.
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Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery
Performance Objective? Immediate delivery scheduling.
Payment? $100 cash.
How It Works: • Weekly.• Sale complete for delivery – over 95%.
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Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery
Performance Objective? Sell more warranty plans and product care.
Payment? 20% commission.
How It Works: • Customer Central.• Just ask.• Enter a sale.
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Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery
Performance Objective? Perfect deliveries (no damages).
Payment? $200 for driver and helper.
How It Works: • Monthly.• No service issues one week after delivery.
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Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery Warehouse / Delivery
Performance Objective? Impress customers with the professionalism of your
delivery teams.
Payment? $50 for each truck per week - put into common pot.
How It Works: • On-the-spot surveys and email surveys. • All above average results = addition to bonus pot.
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ServiceServiceServiceService
Performance Objective? Increase vendor credits.
Payment? 10% commission.
How It Works: • Tracked via completed service invoices or AP
credits.
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ServiceServiceServiceService
Performance Objective? Decrease service as a percentage of delivered sales.
Payment? Tickets to NFL football game.
How It Works: • Track source via service reports in v 12.0.• Customer, item, vendor.
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Warehouse ManagerWarehouse ManagerWarehouse ManagerWarehouse Manager
Performance Objective? Keep warehouse expenses down
Payment? Split profit gained by better expense control.
How It Works: • Quarterly.• Compare financial statements with financial forecast.• Controllable expense must be under pro forma level
and percentage of sales.
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Computer TechComputer TechComputer TechComputer Tech
Performance Objective? 100% up time during business hours.
Payment? Internal tech: $100 Best Buy gift card.
External: Negotiate a rate structure that pays more if there is no down time.
How It Works: • Controller tracks.
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Marketing? That's Everyone! Marketing? That's Everyone! Marketing? That's Everyone! Marketing? That's Everyone!
Performance Objective? Increase traffic.
Payment?Split commission for any employee referrals.
How It Works: • Word of mouth.• Get cards made up for EVERYONE. • Stamp the back for special events.
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EveryoneEveryoneEveryoneEveryone
Performance Objective? Reinforcing PFP program.
Payment? $100 cash or one level 5 or 6 item under $500
to charity of winners choice / month.
How It Works: • Recognize one person for above and beyond
performance. • Employees and/or customers can nominate.
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EveryoneEveryoneEveryoneEveryone
Performance Objective? Promote a healthy lifestyle.
Payment? Company fitness membership.
How It Works: • Annual.• First year free.• Exceed profitability and cash flow targets.• Financial statements and pro forma.
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General Management / Ownership General Management / Ownership General Management / Ownership General Management / Ownership
Performance Objective? Maximize shareholder earnings per share (EPS) and
company liquidity.
Payment? Percentage of profitability that exceeds
pro forma target.
How It Works: • Annual bonus.• Based on financial performance of the entire business.• Both cash flow and profitability targets must be met.
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VendorVendorVendorVendor
Performance Objective? Strengthen relationships.
Payment? Lunch or simple message to manager.
How It Works: • For great service.• Positive reinforcement for those that you need to
stay in business.
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CustomerCustomerCustomerCustomer
Performance Objective? Increase average sales per customer.
Payment? Provide VALUE added ideas on related products.
How It Works: • Soon after purchase.• Point of purchase (POP) – “Extra Ideas”
brochures. • Next purchase email follow up.
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CustomerCustomerCustomerCustomer
Performance Objective? Improve customer loyalty.
Payment? Reward point program: $1 spent = 1 point.
How It Works: • Trade points for vouchers or credits for merchandise.• Make a point value system.• Maintain on a spreadsheet.• Communicate and help track via e-Marketing-type tool.
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CustomerCustomerCustomerCustomer
Performance Objective? Create buzz amongst your biggest customers and draw
other big hitters.
Payment? Super Bowl Tickets.
How It Works: • Annual.• The biggest customer wins.
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PROFITPROFITgroups groups ––Visionary PerformersVisionary PerformersPROFITPROFITgroups groups ––Visionary PerformersVisionary Performers
Performance Objective? Combined group EBITA of over 8%.
Payment? PROFITgroups meeting in Hawaii.
How It Works: • Check progress in six months.• When combined average EBITA is above 10%, the
next meeting will be booked in Hawaii.
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What PFP What PFP willwill YOU implement?YOU implement?
Thank you!Thank you!
David [email protected]