“The Bovino Gainsharing system has consistently exceeded my expectations in real performance improvement” Click here to read more “Our employees are earning 15 to 25 percent Gainsharing pay each month, based on real performance improvement” Click here to read more “The Bovino Gainsharing model has been implemented in four of our plants. We will implement it in all future acquisitions.” Click here to read more “Without the huge employee productivity and material usage improvements from the Bovino Consulting Group’s Gainsharing Plan we would not be surviving the 2009 recession.” Click here to read more “Vince Bovino delivered a powerful and easy to understand Gainsharing Executive Workshop. I guarantee you will not fall asleep.” Click here to read more “For years we have been measuring too many things and some wrong things. The Bovino Gainsharing model forced us to measure and reward the right things…” Click here to read more “The Gainsharing process by Bovino Consulting changed our employees’ behavior…we couldn’t do it ourselves.” Click here to read more “Your guidance and dedication has been invaluable…I can assure you that we will again be turning to you for assistance.” Click here to read more “The first year of our Gainsharing Plan has gone very well. Total saving have been $3,272,675…” Click here to read more “The consultant (with Bovino Consulting Group) who did all the statistical and analytical work to develop and validate the pay model is second to none….he is super accurate and very fast...” Click here to read more “We have interviewed other Gainsharing consulting firms and none, yes no one, come close to the knowledge, drive and passion seen in Bovino Consulting.” Click here to read more

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Bovino Consulting Group
1250 Ironwood Drive - Suite 334 | Coeur d'Alene, ID 83814
Phone: (208) 765-3344 - Fax: (208) 664-6237
bcg@bovino-consulting.com
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  • Pyr_1Reward
    System
  • Pyr_2Performance
    Communication
    System

    A comprehensive performance information feedback system to employees is the life blood of any improvement iniative.

    Click pyramid level for more information

  • Pyr_3Performance
    Improvement System

    Nothing succeeds like the power of focused Performance Improvement Teams.

    The heart of the Gainsharing process is a well–defined structure to capture, evaluate and implement employees' ideas for improvement. This structure is the powerful engine that drives your organization's improvements.

    Click pyramid level for more information

  • Pyr_4Line-of-Sight
    Performance Targets

    Line–Of–Sight Performance Targets (LSTs) are "micro" or "mini" performance goals that are specific to a team or department. They are performace measures that drive the success of that team or department.

    LSTs help create that all important linkage between what employees do in their work area, the KPIs' results and the associated reward.

    Click pyramid level for more information

  • Pyr_5Key Performance Indicators

    Key Performance Indicators (KPIs) are the common, critical, "macro", organization-wide performance measures that drive business success. They measure the results of the overall organization and are the basis for the reward system.

    Click pyramid level for more information

  • Pyr_6Plan Design Features

    This is the structure of your plan. They are the administrative aspects of your plan. These features describe every detail of your plan. There are 25
    ( + or – ) Plan Features that must be addressed to ensure a comprehensive, well thought out plan.

    Your plan is the rock-solid foundation of your improvement iniative.

    Click pyramid level for more information

  • Rule #1: What Gets Measured, Gets Done.
    What Gets Measured and Rewarded Gets
    Done to a Significantly Greater Degree

Bovino Consulting Group’s Reward Systems are comprised of the following five components:

  • Key Performance Indicators (KPIs)
    The “macro”, organization-wide performance factors that are measured and rewarded.

  • Pay Models
    The statistical financial model used  to collect data, analyze data, develop performance baselines and build and validate the incentive pay.

  • Pay Charts
    The charts and tables, for each KPI, that define for employees the Gainsharing Fund for increasing performance levels beyond the baseline or standard.

  • Building the Total Gainsharing Fund
    The amount of money that is collectively earned by all employees for exceeding the performance standards of one or more of the KPIs … the total monies to be distributed to employees.

  • Distributing the Gainsharing Fund
    A method of distributing the Gainsharing Fund to employees that is equitable, legal, and motivational.
Our Pay Models are recognized by clients around the world as being preeminent. Our models are very accurate, creative in design, self-funding, validated and tested against various performance assumptions. Our Pay Models are designed to be quickly updated at the end of each plan year.
 
We have built many pay models for business with basic Key Performance Indicators. We have also met the challenge of building pay models for some very complex businesses. Whether your business is simple or complex our Pay Charts (viewed by employees) are always simple, visual and user friendly. We succeed in making the complex, simple!

Our Pay Models typically distribute 35% of the value of the operating performance improvement to employees, while 65% of the improvement value is retained by the stockholders/owners.

 
 Reward System Principles

We adhere to the following 18 Principles when building the Reward System:

  • Measure what you value (the business drivers) and behavior you seek … what gets measured, gets done.

  • Measure and Reward what you value (the business drivers) and the behavior you seek … what gets measured and rewarded, gets done to a significantly greater degree.

  • Don’t reward the wrong behavior or the wrong results

  • Establish 4 to 7 Key Performance Indicators (KPIs).

  • Key Performance Indicators (KPIs) must, to some reasonable degree, be influenced and/or controlled by plan participants.

  • Gainsharing rewards must be driven by improved results, not improved processes.

  • Gainsharing rewards must be driven by improved results, not improved efforts.

  • Gainsharing rewards must be based on actual measurable improvements compared to a standard or baseline.  Pay models must (with a few exceptions) be self-funding … wealth can only be shared after it has been earned.

  • Baseline performance is normally average historical performance … there are some exceptions.      
          
  • Small incremental improvements above the baseline performance are measured and rewarded … big successes are built on a foundation of small successes.

  • Pay models are uncapped.  Uncapped rewards produce uncapped performance.  Never cap a well designed, self-funding, incentive pay system.

  • Variations in performance must be mirrored in magnitude by variations in rewards.  When performance improves the reward increases, when performance declines the reward decreases or goes to zero; in some cases it may go negative.

  • Reasonable improvement levels must produce a reward that is considered “motivational” to plan participants.  Employees begin to think and behave positively toward performance improvements when they can reasonably achieve a 6% to 7% payout.  The greater the earned reward, the greater the motivational level.

  • The opportunity for a payout (or no payout) should be relatively frequent (i.e., monthly), thereby providing frequent reinforcement.

  • Sustained operating performance should be measured and rewarded.

  • Combining the above two principles results in measuring performance on a 3-month rolling average and rewarding (or not rewarding) employees each month based on the performance of the most recent three months.

  • Avoid minimal payouts. Forward minimal Gainsharing funds to the next performance period.

  • Pay models must be visual and simultaneously present the performance and the reward.

The Reward System Principles are discussed extensively during our Live, Client-Specific Gainsharing Webinar and our On-Site Gainsharing Executive Workshop.
   
(Click here for more information about our webinars and on-site workshops)