Monday, August 3, 2009

Dangerous curves: Is forced ranking the pay-for-performance answer? - i4cp

"I'm not sure I know anyone who enjoyed getting graded in college 'on the curve.' It's strange and unnerving going into an assignment knowing that a certain percentage of students in the class are guaranteed to fail. Forced ranking leaves me with the same impression. Before the process even begins, someone is going to be number one, and someone is going to be dead last. Fine for a race, but is it the best strategy for an organization?

i4cp recently conducted a survey on pay for performance (view the sample results), and one of the findings was that about 21% of respondent companies use a forced ranking system for performance management. I personally thought that number would be much lower. While it's used mostly by the largest companies (more than 10,000 employees), about 14% of smaller companies also said they use it."

Monetize The Audience, Not The Content

"There's a lot of discussion out there about how online content should be monetized.

In particular, the newspaper industry is doing a lot of soul searching for the right revenue model. For many publications, particularly legacy publications with higher cost models, advertising alone isn't covering the nut.

Let's leave out the discussion of the print side of these businesses for this discussion. I think most papers would be better off without the print business but I also understand why many won't walk away from a print based product just yet."


Hat tip: John Sumser