In the 1990s I worked for a one organization where bonuses were paid annually tied to annual financial indicators and whether or not I was a strong performer. The latter part of the evaluation was subjective based on how well I did as an individual contributor, manager, or team player. Being an annual bonus the evaluation was averaged out over the year and didn’t provide a sense of urgency for immediate change going into the next evaluation period.
In the early 2000s I found myself with a new employer. The bonus system was based on quarterly management by objectives (MBOs). The bonuses were measured and paid quarterly. They comprised individual task completion, company revenue and profit objectives, adoption of new business directions, and team objectives. They were black and white, recorded, exposed for everyone to see, and much less subjective. Continue reading