Reward linked to business strategy

The issue

A global manufacturer was restructuring a new business and identified the need to respond positively to major changes in their traditional market place. They determined that a change in the senior executive reward strategy would help to improve and sustain performance. Their objective was to re-align behaviours with commercial needs in a more human way of doing business, by:

• Defining a balanced scorecard for the whole business
• Focussing the effort of senior executives on doing the right things for the whole business and rewarding them for contributions that really make a difference.
• Achieving a consistent way of looking at employee performance on a global basis.

Our approach

PricewaterhouseCoopers undertook an economic analysis to present a complete picture of the business, including which aspects really contributed to its value. We then created a balanced scorecard and a metrics based approach to performance management – the scorecard being based on three closely linked domains – financial performance (measured as economic value added), brand value and people. The final stream involved communications and roll out of the new approach to senior managers and employees, in the UK and in other territories.

The outcome

By the end of the project, the company had implemented a new reward and performance management strategy linked to business performance; had a transparent and consistent approach linking objectives, performance and rewards, and a development tool that built the desired competencies alongside rewarding performance.