In this article appearing in ThinkingPortfolio.com, the author describes four criteria we should keep in mind while defining simple project successes. Later on, we also find out the things to consider when developing a bonus plan.
Criteria to Define Success Bonuses
- Budget Management: This sort of incentive plan focuses on sharing the project savings, on account of improved performance, between the project manager and his or her team as a bonus.
- Quality Considerations: A popular bonus in the manufacturing industry, this plan measures quality by identifying defects on a regular basis. More recently, this bonus has been adopted by the service industry as well.
- Customer Satisfaction: Many companies have included the customer satisfaction bonus plan as part of their rewards. Here, the level of customer satisfaction, as revealed by customer feedback and final reports, are considered for the granting of bonuses.
- Resource Management/Allocation: The project manager and the team’s ability to efficiently allocate resources can ultimately bring about project success. To this end, project managers must carefully identify the right person for the job. Further, the project manager’s ability to carry this out successfully must be measured to determine his/her overall success (at the end of the project).
Considerations When Developing a Bonus Plan
- Bonus payouts should only be made once the success threshold has been achieved
- The rating process must be readily available to the managers and the team
- Team members should only be assessed on factors which are under their control
Click on the following link to view the original article in full: https://thinkingportfolio.com/how-to-define-simple-success-bonus-for-the-project-manager-and-project-group/