Avalanche Zone

Are You Prepared and Protected? by Rob Marchalonis. Last summer, my wife and I enjoyed a 10-day vacation loop around the Mountain States beginning and ending in Denver. We started by taking our rented Jeep Wrangler north to the Black Hills, Sturgis, and Mount Rushmore. From there, west to Devils Tower, Cody, and the East entrance of Yellowstone. After a…

Read More »

Simple But Powerful Change Model

Managing significant “change” is a difficult challenge for leaders. With good intentions, some leaders proceed to do something new or different without adequately considering the potential outcomes or impact on others. What may seem like an obvious improvement to some, can appear to others as “more work” or “unnecessary risk without adequate benefit”. Leaders can benefit from the Knoster Model…

Read More »

Incentive Benchmark Nucor

Productivity leader Nucor rewards leadership for results. Always interesting to follow the performance and corresponding employee incentive compensation for “benchmark incentive” company, Nucor. Yes, they’ve enjoyed some nice tailwinds lately, but still very impressive for an otherwise “gritty commodity business”. Every article about Nucor seems to mention their aggressive variable comp plans and leaders often link their top-tier productivity to…

Read More »

Incent Which Employees First?

Six Questions to Help You Pick by Rob Marchalonis Who first? Anyone who has even considered employee incentive compensation plans asks the question, “With which employees should we start?” My strong belief is that incentive plans are best deployed by functional team or “workgroup”. Most small to mid-sized organizations can conveniently group their employees into a relatively few (4 –…

Read More »

Engage with One-to-One Meetings

By Rob Marchalonis. Multiply your engagement by dividing your audience. Regular one-to-one meetings can be an effective and efficient way to engage with your employees, and others. During these very personal connections, you have the opportunity for more meaningful communication, relationship building, and understanding of mutual wants, needs, and expectations. Select a meeting frequency that allows for optimal connection and…

Read More »

Nucor Steel Incentive Role Model

“Every employee of Nucor Steel plants across the world is on incentive pay,” declares Giff Daughtridge, vice president and general manager of Nucor Steel Berkeley, on April 4, 2018 at the Daniel Island Club. “By doing this, the company is able to maintain the highest wages in the steel industry. “From the last person we hired to our CEO, we’re…

Read More »

Charlie Munger on Incentives

“Never, ever, think about something else when you should be thinking about the power of incentives.”  Charlie Munger Both Warren Buffet and Charlie Munger extensively use and have strong feelings about incentives.  Every business leader would be wise to learn them. The following are excerpts from a very interesting article on incentives from the Farnum Street website.  Read article here.…

Read More »

Are CEOs Paid Too Much?

Is the CEO’s compensation a relevant indicator of employee treatment, fairness, or otherwise? Seems to me a better measure is the value the CEO brings to the organization relative to whatever they are paid. I believe employees care more about how THEY can enjoy a reasonable “share of the company’s success” based on their workgroup’s contribution and care less about…

Read More »