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Ren Zhengfei said: What is talent? If more money is given, it will become a talent if it is not a talent.
But how to divide the money? Many managers can't figure out this account, so they don't dare to divide it if they want to, and they won't share it.
On the one hand, they are afraid that they will suffer a loss, thinking that if they have too much share, they will take the majority of their own shares, or if they have less points, the points will be unfair, and the employees will run faster.
In the process of enterprise and management consulting for many years, Lao K has created the ABC performance-based compensation integration system.
After continuous exploration, improvement and actual combat of many large and medium-sized enterprises, it has been proved that it is indeed simple and efficient, and has opened up the closed loop of value creation, value evaluation and value distribution of enterprises.
Let the money-sharing model be tied to the performance of the enterprise, clear and clear: employees work more and earn more, and the boss earns more to achieve a win-win situation.
After understanding this model, it is relatively easy to understand the operation logic of Haier's Rendanyi, Kazuo Inamori's amoeba management, the total wage control of state-owned enterprises, and the operation logic of dividing accounting units into smaller units.
With this model, combined with the actual situation of different enterprises, only a little adjustment is needed to realize the market-oriented operation mode within the enterprise.
Today, I will briefly introduce this performance-based integrated system. The principle is very simple, but because it involves mathematical modeling and calculation, if Lao K doesn't understand what he said, you can leave a message to continue to communicate.
The following is the text.
ABC performance-based compensation integration system opens up value creation, value evaluation and value distribution
The old way, start with a picture, and the rest will talk about the picture.
This is the schematic diagram of the ABC performance-based compensation integration system originally created by Lao K.
1. How do you read this picture?
The principle is relatively easy to understand.
A stands for company level, B stands for department level, and C stands for employee level
At the level of value creation (enterprise benefit), A represents the company's benefit, B represents the department's benefit, and C represents the individual's benefit. A is the sum of the individual Bis. A B is the sum of the Ci within it.
At the level of value evaluation (performance), A represents organizational performance, B represents department performance, and C represents employee performance.
At the level of value distribution (salary incentive), A represents the company-level incentive package, B represents the department-level incentive package, and C represents the individual incentive. Incentive Package A is Bi and . A B is the sum of Ci within it.
2. How do I use this image?
The value creation-value evaluation-value distribution at the ABC level is a relationship of horizontal decomposition and vertical support.
2.1 Company-level value creation-value evaluation-value distribution is connected at the A level.
If the company's performance last year's performance is A0, and if the target performance set this year is A1, the value created increment is △A=A1-A0.
Remuneration package coefficient, using the concept of gross salary. If last year's salary package is SA0, the coefficient of linking this year's salary incentive to performance is set to α (incremental method).
So this year's pay package:
sa1=sa0(1+α*ka)(增量法,ka为绩效系数)
Or: SA1=A1*KAβA (0 basis calculation method, β is 0 basis linkage coefficient, KA is the performance coefficient)
The above is the formula description. It can be boring.
Let's take the example of a simplified 0-basis calculation.
For example, if a manufacturing enterprise adopts the integration of ABC performance pay, the coefficient of linking its salary level to sales is βA=10%. Then last year's sales performance was 10 million, and the total salary was 1 million. Assuming a performance coefficient of 1.0 (i.e., no assessment of the achievement of other indicators)
If the sales performance reaches 20 million this year, then the total salary at the company level is equal to 2000 * 0.1 = 2 million.
The incremental model is a bit more complex to calculate, but the principle is similar.
If you know zero-based budgeting and incremental budgeting, it will be easier to understand. Their calculation principles are the same, the difference is only that the model is different, and the design of the parameters is different.
2.2 The value creation-value evaluation-value distribution at the departmental level is also connected at the B level, but it needs to be handled with the help of models
Because you want to subdivide the description, continue to use the simplified mode to describe it.
Let's say this company has only 4 departments. 2 sales departments (1 sales department, 2 sales departments), a production department, and one functional department.
At this time, the value creation, the sales department is easier to say, the total is 20 million, of which 1 is 12 million, and 2 is 8 million.
However, if the manufacturing department produces 22 million worth of goods, how to calculate it?
Models are calculated only at the final factory value. That is, the overall performance is only 20 million. Both the manufacturing department and the functional department are calculated on a performance basis of 20 million.
This is a key point in the company-to-department transition.
However, the difficulty in value distribution lies in how to determine the value of βBi.
This is where the model is decomposed and supported.
That is, βA is reasonably split into βB1, βB12, βB13, and βB14. Make 1200 * β sales 1 + 800 * β sales 2 + 2000 * β manufacturing department + 2000 * β functional department = 2 million.
For example:
β Sales Department 1 = β Sales Department 2 = 0.05, β Manufacturing Department = 0.03, β Functional Department = 0.02
Finally, the above equation can be balanced.
In this case, the default KBi=1.0 is simple. The actual performance appraisal, KBi is definitely not equal to 1.0, the real calculation formula is more complicated, just give a simplified example does not affect the understanding of Ha.
2.3 The staff-level distribution model is similar to that of the departmental level
The difference is that the employees of the sales department, who create performance, are calculated according to the performance decomposition, and those who do not directly create performance are similar to the calculation method of functional departments.
Employees in functional departments no longer calculate value creation, but directly use the department-level distribution model to calculate value distribution.
3. Handling of the value evaluation part
前面都是默认KA、KBi、KCi=1.0。
However, at different stages, in different departments and in different positions, the focus leads to different performance appraisal contents, so it is necessary to use performance appraisal tools to set quantitative indicators to calculate.
This is the performance part. As I wrote earlier, the goal of a performance appraisal doesn't have to be broken down to everyone (click to read). There is a description of the basic assessment ideas, and the maximum degree of integrated design is also carried out.
Once the assessment content and standards are determined, the basic disk of value creation and value distribution will not be affected, and the income of each department will be directly related to the company's performance.
It truly realizes the effect of "the big river has water, the small river is full, and the big river has no water and the small river is dry".
Amoeba management, small accounting units and other modes can be opened up with this method. The granularity can be cashed out annually, quarterly, and even on a daily basis.
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