PERFORMANCE INCENTIVE PLAN

November 10, 20251 min read

People Don’t Just Work for Money. They Work to Win. The Incentive System That Unlocks Commitment and Ownership.

A team does not become accountable because you tell them to be.
A team becomes accountable when:

  • Success is clearly defined

  • Progress is visible

  • Rewards are meaningful

  • Effort leads to achievement

This is where the Performance Incentive Plan becomes essential.

Most business owners believe incentives mean “bonuses.”
But bonuses often fail because they are:

  • Arbitrary

  • Emotional

  • Paid for the wrong reasons

  • Not tied to measurable contribution

  • Distributed inconsistently

A Performance Incentive Plan is not a gift.
It is a system that links behavior → performance → reward.

It reinforces the identity of the business:

“When we win together, we all rise.”


A Strong Incentive Plan Has Three Principles

1. Rewards Are Based on Measurable Results

Not effort.
Not tenure.
Not personality.
Not promises.

Results.

2. Rewards Are Predictable

Every team member should know:

  • What is expected

  • How performance is measured

  • How rewards are calculated

  • When rewards are distributed

Clarity drives motivation.
Confusion destroys it.

3. Rewards Are Meaningful

Meaningful does not always mean expensive.

People feel rewarded when they feel:

  • Recognized

  • Respected

  • Seen

  • Appreciated

  • Valued

The strongest organizations reward performance and identity.


Your Coaching Assignment

Define:

  • One measurable goal per role

  • The reward for achieving it

  • The rhythm of evaluation

Then communicate it clearly.
Ensure the team sees it.
Review it consistently.

This is how a team stops being a group of people who work in the same building —
and becomes a unit that wins together.

Eric Dombach is an investor, entrepreneur, senior executive, and consultant to PE firms and family offices. He has founded two professional service firms that achieved 7-figure exits. As the leader of a business consulting firm and a network of more than 6,300 business consultants, Eric is dedicated to developing leaders, building dream teams, and growing SMBs. He is also a published author, known for his Amazon best-seller, "The Million Dollar Business Coaching Firm." Eric has an MBA from the University of the People and a B.S. in Engineering from Messiah University. He has been married to Deborah since 1993, and they have four adult children. He enjoys reading, world travel, and playing jazz-fusion guitar.

Eric Dombach

Eric Dombach is an investor, entrepreneur, senior executive, and consultant to PE firms and family offices. He has founded two professional service firms that achieved 7-figure exits. As the leader of a business consulting firm and a network of more than 6,300 business consultants, Eric is dedicated to developing leaders, building dream teams, and growing SMBs. He is also a published author, known for his Amazon best-seller, "The Million Dollar Business Coaching Firm." Eric has an MBA from the University of the People and a B.S. in Engineering from Messiah University. He has been married to Deborah since 1993, and they have four adult children. He enjoys reading, world travel, and playing jazz-fusion guitar.

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