Top 10 Keys of the Performance Model of Management Theory

In addition to the Control and Caretaker Models, consider the Performance Model of management theory: 

1. Emphasis is not on control, empowerment, or any traditional management focal point. 
   
2. Key Performance Indicators and other measures are used to facilitate Fact Based Management. 
   
3. Everyone in the organization is preoccupied with performance. They are owners and are rewarded for organizational gains through a Gain Share Plan, possibly in the form of a Virtual Performance Company™. 
   
4. Key core value adding linear work is covered by a Direct Incentive Plan that changes all traditional dynamics and moves individuals out of the Entertainment / Entitlement Zone to the Performance Zone. 
   
5. Gain Share and Direct Incentives are uniquely linked to reinforce each other, and the design effort is socio-technical. 
   
6. Incentive Baselines are set using 6 weighted rating factors including culture & business mechanisms. 
   
7. Situational Sculpted Pay Curves optimize incentive impact. 
   
8. A Continuous Improvement System works in concert with the Pay System. 
   
9. Non-value adding work naturally disappears. 
   
10. The underlying principle is, “When a group of people work in concert to advance the business, a by-product of the effort is a better functioning social unit.”