Only 25% of managers have incentives lined to strategy
Only 21% have their personal goals linked to strategy

Is there conviction and strong motivation throughout your organization to act upon and achieve your strategy?

If your answer was less than a strong “YES!” the answer to the problem lies in these stats.

Strategy is everyone’s everyday job.

Strategy experts have identified four major barriers to strategy and execution excellence. This is the fourth post in an ongoing series focused on maximizing strategic performance in your organization.

The second of the four most common barriers is the “People Barrier.”


While studies show that 69% of companies offer some form of incentive compensation to their employees, most link cash rewards to activities and short-term outcomes. Employees can take liberties with activities and numbers to achieve quarterly targets. Short-term rewards rarely lead to achievement of long-term objectives.


There are many ways to link individuals’ behavior to the achievement of strategic corporate objectives. Holistically communicating the outcomes and strategy you are trying to achieve will allow each individual and team to define personal objectives they can influence that will have an impact on the organization’s holistic objectives. Research has shown that linking team or department-based outcomes to individual rewards results in broader, higher impact goal achievements.

Compensation can be based on up to twenty-five strategic measures. Implementing a strategic performance management and measurement system with individual action plans will heighten employees’ interest in all elements of the strategy and increase their desire and demand for knowledge and information about your strategic measures.

Want to know what you can do about it? I’m doing a series right here focused on improving organizational performance. If you want to know when each segment is posted or you want it delivered to your email, simply click here for FREE updates!

We’ve prepared a FREE Strategy Assessment tool to help you determine where you might be able to increase performance and capitalize on opportunities that exist within your organization.

Visit our Resources Page and click on “Strategy Gap Analysis” drop down list.

Please let us know what obstacles you’ve identified and how you are improving employee understanding and strategic impact.

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Sheri’ Taber, CEO, The Peak Performance Group, Inc., Management Consultants, Strategy and Execution Experts