The Incentive Continuum

There is a balance between individual and team incentives. It is important to realize that this balance is dynamic. To assume it is static risks the potential of "stale" performance.

Think of incentives as being on a continuum. This continuum starts with individual performance and ends with team performance. If incentives are at the "individual" end of the continuum, then personal agendas will supersede team performance. Behaviors exhibited at this point in the continuum usually produce short term results and are sycophantic in nature. This is not something that all people are given to, but it is something that all people will exhibit to one degree or another, when the incentive is for individual performance alone.

On the other hand, at the opposite end of the continuum, if incentives are strictly for "team" performance only, confusion may occur. Who will lead when there is no incentive to lead? Who will make decisions? Ambiguity ensues and individuals, especially highly motivated individuals, become disenfranchised. They will disengage and results will be slow in coming and as ambiguous as expectations for the team.

Given this data, the correct balance must be identified. Such a balance depends on organizational values, objectives and business needs. Determining the correct balance cannot be arbitrary, but rather should be a disciplined, proactive process that is aligned with organizational strategy. This also anchors the incentive program to the organizational culture.

To ensure that the incentive plan does not become stale, it should be evaluated for change on a periodic basis. This will ensure that the incentive plan has the correct balance, at that period of time for the organization, between individual and team performance.

It is also important to keep in mind that not all incentives are monetary in nature, and not all incentives are formal. Leaders within the organization can exercise creativity for short term projects or plans, which will help drive results. The same criteria for developing these incentives are the same for broader organizational incentives.

Finally, incentives are a form of recognition and nearly everyone wants to be recognized for their efforts. Not all want to be recognized in the same way. George Washington was keenly aware of this during the American Revolution. A highly puritanical congress thought that the Continental Army should aspire to the greater good of the country and quit complaining that the worthless Continental Scrip they were issued had no value. During Valley Forge, there were large numbers of troops deserting daily, most of which deserted for lack of "real" pay. Washington was keen on recognizing the folly's of this congressional thinking and met with many of his men who had deserted upon their capture and return. He asked them of their concerns and promised with full intent, and the integrity known to be characteristic of him, that he would do his best to redress their grievances. His troops returned and others on the cusp of desertion remained.


These men of the Continental Army were only seeking recognition for their efforts, trials and contributions. They wanted to be validated as individuals, as soldiers, as human beings. They also had to work as a team. Through the instrumental skills of Baron Von Steuben, Washington was able to give his troops pride (read as recognition) as an army that would be a force to be reckoned with; a team.

Balance had to be found on the continuum. So it is with every project for every organization. Incentives must exist, but they must be balanced between the individual and the team. They must be appropriate to the time and the task. And they must not be allowed to go stale.

When performing an investigation, it is important to consider incentive, both for the team and the individuals on the team, to ensure the investigation is sound and completed on time. It is critical that your plans for your team are found at the right point on...

The Incentive Continuum