2. The Best laid incentive plans

2. The Best laid incentive plans - stuff was sitting on a...

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Hiram Phillips: CFO of Rainbarrel Keith Randall: CEO of Rainbarrel Hiram’s plans: 1. Reduction in labor costs: Lower costs as a result of higher productivity Reduction of 10% on all units, lay off?? 2. Transformation of call center: originally, spend up to six minutes per call. Now, less than four minutes 3. Put the names of worst offenders on a great big wall of the shame: Peer pressure 4. An increase in on time shipments 5. Change the commission system: originally. Use retail value. Now use actual price said Results: Fail 1. Rainbarrel’s promises are not always customer’s want: The
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Unformatted text preview: stuff was sitting on a railroad siding across the street. 2. Call center: Customer service is not good. They all-fired hurry to get off the phone. Clients may need to call two or three calls 3. Both current and retired employees were complaining about being treated poorly by sales person. 4. Lay off some of the companys best employees. 5. Salespeople complain company Answer: Focus on process Finding something invisible Build in feedback system Alignment Mechanism...
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