business news in context, analysis with attitude

by Kevin Coupe

Fast Company reports that Google, looking to make an impact on the social media space that Facebook seems to have dominated to a greater degree, went out a memo to employees saying that “ 25% of their annual bonuses will now be tied to how well Google pushes out its social strategy in the coming year.”

"This is a joint effort so it's important that we all get behind it," CEO Larry Page said in the memo.

That may seem a little draconian ... but it reflects a fascinating approach to leadership and management that is worth considering.

Think about it. If a company has a grand strategy, it seems incumbent on everyone working for the company to be focused on the same goal, the same tactics, to be rowing in the same direction. And as much as possible, it seems to make sense for people to be compensated based on their abilities to advance the company toward those goals.

You can’t just dictate to employees. You have to earn their loyalty, you have to work hard to get them to buy in and take ownership. In doing so, you become a leader rather than just a manager.

But tying compensation to delivering on strategic goals in fundamental ways? That seems to make a kind of sense.

At least, that’s what they think at Google. And that’s our Monday Eye-Opener.
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