Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit

An Incentive Plan Must Be Self-Funding

For an incentive plan to be self-funding, it must pay for itself. If your plan does not pay for itself, then what you’ve created is simply a new expense. You’ve also created an entitlement (or, as someone attending one of my talks so aptly put it, you’ve created welfare). Given this, it is important to provide your employees with the education, measures, information, and tools outlined in this book to ensure that they find the money to fund the plan. If employees are going to be given the opportunity to participate in an incentive plan, then it is their obligation and responsibility to fund it. It follows, however, that it is the obligation of ownership and leadership to teach them how to do that and to ...