Understanding the Dynamics of the Value Chain

Suggested Actions

•Learn how identity leads to effective collaboration.

•Commit to making “every person a capitalist” throughout the organization.

•Be sure that the compensation system includes both intrinsic and extrinsic components.

•Study existing forms of variable compensation that have proven effective.

•Create a culture of collaboration and build a model of ­organization—wide variable compensation based on an involvement system, performance standards, and profit ­set-asides.