Management 3.0: Bonus money and peer to peer recognition

Ralph: Step by step. Start introducing just the points, not the money. Disconnect from money in the beginning and start introducing the points. Start small and introduce it as an experiment.

What advice would you give to help people start shifting their bonus system to something more along the lines of this?

The biggest flaw for me is still then indeed the visibility. If you’re not really active on the team because for some reason, you’re on holiday or you have a low commitment level then you would get less points.

Fairness is very important and I think this system is much more fair than any other system that I’ve worked with because in other systems the management decided on bonuses.

With us, it’s so much to do with good work consistently, and then, we’re complementing each other, we’re acknowledging each other’s efforts and that makes a lot of difference.

The other thing we do that’s quite special, is at the beginning of the month we roll a dice. Why? To decide if we’re going to pay out a bonus. We payout when we roll the number six. One of the things that we teach people at Management 3.0 is that you pay out rewards unexpectedly because if you know when you’re going to get a bonus, some people tend... See more

For example last week I gave ten points to our colleague Nadine, because I think she’s driving some projects excellently. At the beginning of the month, you get 100 points and if you don’t use them they’ll be gone by the end of the month at which point you get topped up with new points. So every month you can give 100 points to team members. It’s 1... See more