We revised the incentive plan and it produced better results in sales and service.
After implementing the new Customer Survey System, the results of the service department materially improved both with the productivity and quality of the performance. I was very pleased with the first month of the program. Sales were up, and the customer complaints were few and far between. The backlog report of service orders was current, and the morale of the department was positive. Everything was moving in the right direction.
Chris, the service manager, suggested a change in the Customer Survey System. Initially, I was very surprised because things were going so well, but I listened to him. He recommended that we create a monthly bonus pool paying the whole group of technicians, shared equally. He suggested that for every customer survey received from customers with all the ratings of a “4” or better for the six questions, earns $5. The number of surveys receiving a bonus will be listed on the whiteboard in the conference room by service technician. I want every technician to know how his monthly bonus contribution to the group compares to the rest of the service team. The plan will create competition amongst the service guys. Their egos and peer pressure will force each tech to do better and earn more bonus money for the group.
The bonus plan must be a “win – win – win” incentive system.
The company wins because our service guys are providing better service which makes for happier customers. The plan is self-policing because the techs who are not producing are going to get pressure from the rest of the group to do better. The techs win because they are going to receive a monthly bonus that they never received before for delivering superior service. Our clients win because our technicians are working hard to earn a “4” or “5” rating for their efforts with the customers.
After implementing this bonus program, everyone in the service department focused on the whiteboard with the growing monthly bonus total. The top producers were helping the technicians who were not doing as well. The bonus program turned the department into a team, everyone supporting the technicians who needed help. Sales and profits were up, customers were happy, and the turnaround was progressing successfully!
Robert “Bob” Curry has turned around more than 70 businesses, both large corporations, and small businesses. He comes to your place of business or the site of your choice. The first consultation, of course, is at no charge. Bob Curry has a stellar track record of professional success and excellent formal education, including Masters Degrees in Taxation.
Bob published his first book “From Red to Black – A Business Turnaround – The Matter of ABC Shutters” that is on sale at Amazon.com.
Please read all my blogs at Fortlauderdaleceo.com.
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Bob resides in Fort Lauderdale, Florida, with his wife, Esther.