background

Recently, the company is carrying out a pilot project, considering the use of profit sharing model to stimulate the team’s work enthusiasm and potential. I have considered for several days and combined with various management theories I have learned before to record some personal views here for your reference and discussion.

The target

Improve the efficiency of organizational research and development

  • Motivate team work enthusiasm
  • Stimulate the potential of the team

strategy

Choose a strategy for the project

  1. The project is too big to control, and involves too much interest, the company can not let you flexibly deal with the weird problems in various pilot projects, and large projects often affect the nerves of all departments of the company, very sensitive. If the project is too small, it is difficult to be convincing, and there is no way to attract the attention and recognition of leaders, so the project scale should be moderate.
  2. If the pilot project fails, the strategy will be completely lost, so make sure the project is successful in order to promote the strategy further.
  3. After all, the bonus of the pilot project is still attractive to the team members, so if the profit is very low, it is difficult to arouse the spirit of the front-line participants. It is suggested that the total amount of individual incentive should be 50%~200% of their monthly salary.
  4. It has been mentioned above that a multi-department team often involves the interests of different departments, and the balance of interests and bickering between departments can take several months or even half a year. In the pilot project, the mode of quick results is often unworkable.

Incentive strategy

Staged excitation

Because the project often takes a long time and the results come out at the end, it is difficult for the front-line members to see the real thing, and the incentive effect is difficult to achieve the expected. Small project milestones can be considered as follows:

  • Start [5%]
  • Commissioning [30%]
  • User acceptance [30%]
  • It is recommended that the interval between the completion of the warranty period [balance of final accounts] should not exceed 3 months. The proportion here is the proportion of the total incentive amount.

Since there is a certain gap between the profit at the start of the project and the final value, the sum of the first three stages should not exceed 80%, leaving enough room for the final.

Staffing strategy

  • The specific proportion and contribution of each member to the project. The average member’s participation is measured in person-days or person-months. It is suggested that the total amount of individual incentive should be 50%~200% of their monthly salary.
  • Since the roles of project members are often not all the same, I consider that team members are not equally divided. At least two special roles, the project leader and the technical leader, are responsible for business goals and schedule management and team performance evaluation. The technical director is responsible for controlling the technical direction and core implementation mode, and is responsible for the technology. These two have to be at least 70 percent engaged and on call. Their incentives should be at least 1.5 times that of the average member.
  • Consider offering a percentage to the r&d team so that they can better support the pilot project.
  • Support personnel who are not directly related to the project resolutely refuse to be involved in the team to ensure the participation and fairness of the project team.

Evaluation method

  • The company leadership or professional departments will evaluate the overall performance of the team according to the completion of the milestone, and directly evaluate the project leader and technical leader
  • Each member of the team conducts internal eia at milestones or key points
  • Everyone’s participation is posted internally at all times.

Areas of attention

  • Careful and realistic budgeting is key to the success of pilot projects
  • A fair measurement of the contribution of all members is a guarantee for the success of the pilot project
  • Flexible and transparent handling of various issues will effectively improve the success rate of the project and trust within the team.

conclusion

When in doubt, it depends on strategy