Corporate culture has become a hot-button topic frequently discussed by CEOs and leadership teams. But, according to a new paper by Adam Bryant and David Reimer, a company’s most powerful cultural signals are communicated less by talking, and more by who gets promoted and financially rewarded.
Compensation and bonus frameworks typically rely on financial results in order to stay objective and fair. Yet over time, this emphasis on numerical targets has an unintended effect: by ignoring how the numbers are achieved, workplaces can become toxic environments that “promote short-term thinking and a tolerance for the proverbial high-performing jerks.”
In “Incentives for a Strong Leadership Culture” Adam Bryant and David Reimer point to a growing trend of businesses innovating in this space by placing more emphasis on the “how” behind the business performance. Bryant and Reimer break it down into three key metrics: “A rewarding culture,” “The 60:40 Bonus Rule,” and “More than the Sum of its parts,” which you can read it full here.
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