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Iconixx Insights BlogIncentive Compensation Management

Making the most out of performance management

By October 22, 2013January 16th, 2023No Comments

Managing a team of performers can be challenging for any company. From tracking sales to initiating HR plans and making sure administrators are keeping up with their duties, taking charge of performance management is essential to creating a thriving business. One of the best ways a company can execute performance management well is through the use of incentive compensation programs, as well as by focusing on communication through a balanced approach. Here are a few of the best ways an executive can plot out and execute a comprehensive performance management program:

Set clear goals
The first step toward improving performance management at any company is to set clear goals for employees and management alike. These goals may include improving sales numbers, bringing in new clients, retaining current clients or improving administrative practices. No matter the goals, it’s important for businesses to make these clear to staff.

Executives should take the time to really focus on what a company wants to change and improve in meaningful ways before communicating these goals with staff – another vital step in the performance management process. One way to narrow down the focus of developing a team management strategy is to consider a company’s mission statement and goals in an attempt to align these goals with individual employee performance. Sometimes, the goals are right there in front of a team in the form of a mission statement, which should never be ignored.

Communicate with and engage employees
Getting employees on board with a new performance management strategy is key to a smooth transition. Executives should hold company-wide meetings to inform staff of changes so team members are well aware of what will be adjusted and what will stay the same.

For example, a popular way to change company culture and improve performance management tactics is to implement a new or improved incentive compensation program. Incentive compensation management is the cornerstone of many businesses that are looking to drive revenues and improve morale. ICM plans are well known for their abilities to increase employee engagement – when workers know their efforts will be rewarded with financial or other rewards, they are more likely to engage in their jobs and go the extra mile around the office. It is inevitable that some workers will be resistant toward changes in performance management, which is why strong communication and an emphasis on employee engagement are paramount to the success of the performance management process.

Use incentive compensation software
Even after communicating with staff about upcoming changes, the implementation process itself can still be tricky. To counter these challenges, many companies have made the switch to automatic processing and incentive compensation software. Incentive compensation management software uploads sales data on a daily basis, ensuring accurate record keeping and trustworthy data analysis. ICM software allows executives to responsibly keep an eye on employees, tracking their daily and weekly sales numbers, client retention rates or completion of administrative duties. All an executive has to do is sign on to his or her personal cloud-based account, at which point they will be able to see performance-tracking tools and will have access to ICM data, industry trends and more.

If an executive sees an individual struggling to sell a certain project or is losing more clients than is expected, a supervisor can sit down with the employee to ask about their performance and how management can help the employee reach their performance goals. Or, if an employer sees a particular employee thriving, an executive can acknowledge this positive behavior with a merit increase, bonus or other ICM reward.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

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Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

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KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

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S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.