Addressing expectations, inflexibility and stakeholder cohesion
Fortune sharing is the ultimate form of variable pay where the variable proportion increasingly exceeds the basic component.
This is only possible through following principles of Common Purpose and Common fate and linking formulae to the logic of the Contribution Account and enhancing buy-in through the Contribution Accounting Methodology (c).
Two critical challenges facing business today are managing expectations and inflexibility.
The first is addressed through business awareness training and communication.
The second through forms of variable pay.
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