In our last blog segment we covered process on the STAR Model. Now we will talk about rewards.
Rewards and recognition systems can mean many different things to organizations. Some organizations may think of very formal programs. Others may think of informal recognition that focuses on thanking your employees and showing appreciation. The key here is that the rewards and recognition systems need to be in alignment with your strategy whether your system is formal or informal. At this point I would like to define what I mean by rewards and recognition. A Reward is defined as something given or offered for a special service. Recognition is defined as a favorable notice or an acknowledgement.
For example, let’s take an organization that is structured to be team-based in order to exceed customers’ expectations. That is to say that all departments should be pitching in with each other to serve the customer. I am sure you would agree with me that this is a good plan. It certainly was a good plan; however, their sales numbers were reflecting something different. This was a major concern to them; they couldn’t understand why sales were stagnant because they felt they had great quality product. 
As we overlaid the STAR Model on their organization, we found the element that was out of alignment was their rewards and recognition. The organization’s strategy focused on meeting and exceeding customers’ expectations through the use of high performing teams. When we looked at their rewards and recognition systems, they could very clearly see the disconnect. Rather than rewarding team efforts, they were rewarding individual performance. This stopped the teams from performing because individual agendas became more important because individuals were rewarded – not the team. When they discovered the disconnect, they restructured their rewards and recognition systems to be team-based; immediately having a positive impact on sales revenues. As a management principle the importance of this element is organizations get the behavior they reward.
How does your organization measure and reward performance?
Is it in alignment with your strategy?
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