AGILERADIO AGR1.07 SKIN IN THE GAME - WILLIAM EASTMAN

Today's Show is based on AGR1.11 (Clarity on the End Game). Ready for a shock? All compensation systems work! You just don’t like the result. Why is that true? People will do what you pay them to do even achieving unacceptable results because it was designed badly. The chance for mistakes are lowered when pay is based on how people contribute to business success. Get this right and figuring how to reward them is easy.

AGILERAD.IO - "SOLUTIONS ON DEMAND IN THE PALM OF YOUR HAND"

INTRODUCTION
IBGR - the International Business Growth Radio is in alliance with Startuprad.io to share programming on our respective platforms.

agilerad.io is IBGR's new radcasting (radcast - live radio podcast) platform focused on global startups and early growth firms looking for fast and sustainable growth. 

the agilerad.io platform will bring IBGR's IP (Intellectual Property) and OnAir Talent (Hosts) weekly to the startuprad.io community in 30 minute segments. These same broadcasts can be heard live on Wednesday at 1 and 2pm EST (-5). All of our radcast have show notes and it can be found in the NOTE section on IBGR's website.

OBJECTIVES
What would happen if you tied all of compensation to how people impacted profitability? What if you treated everybody like they worked in sales?
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Why not apply that mindset internally to the business and compensation? Here is your primer to get started: Salary is a recruiting tool, Benefits are a retention tool, and if you want performance - Pay for it.

Key Issues - Owner Perspective

1. How do I make skin the game available to everybody without making future investments impossible or dangerous to the founders?

What You Need to Know - The WHAT​
Get everybody into the game, the great game of business. Most people work in environments where they are forced to bowl with a sheet over the lanes. Imagine the only feedback you receive is noise without knowing how many pins were knocked down or where? And where do you throw the second ball? Why are you the only person losing sleep at night because the company is not performing? Share the load.

What You Need to Do​​ - The How

1. Status of Owner Compensation to Date
   1. Salary comparable to other owners?
   2. Actual vs Planned Compensation to Date
2. Status of Available Earnings for Reinvestment
   1. Slicing the Pie
   2. Reinvested Earnings Planned
   3. Total Earnings Available
3. Reinvention Financial Forecast
   1. Reinvention Projections by Phase
4. Other Investments from Retained Earnings
   1. Anything else available?
5. Variable Compensation for Employees / Team Members 
   1. Business Objectives - people need line of sight between what they do and how they are paid. 
   2. Individual Best Season - challenge people to raise their game (the behaviors you identified for bonus) so they can grow their checks.
   3. Make them responsible for their part of the budget and  their compensation.

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