Worksheet · KPIs and Incentives Health Check
Set the weights by role and test them on last year
This sheet is for a business with a written bonus, commission or share plan; the check asks this row only then. It writes the split between the business, the unit and the person for each role, with a reason, and runs last year's results through it. It builds the Competent step of the check:
The weights differ by role, with more business weight at the top and more individual weight in the front line, and each is written down with a one-sentence reason.
Step 1. Weights by role
| Role | Business result (%) | Unit result (%) | Individual (%) | Reason, in one sentence |
|---|---|---|---|---|
| e.g. Chief executive | 70 | 0 | 30 | Answers for the whole business |
| Head of a unit | ||||
| Team leader | ||||
| Sales representative | ||||
| Front-line role |
Roles whose work is hard to watch or count suit more fixed pay. Roles with clear, countable output can carry more variable pay.
Step 2. The back-test
Run last year's actual results through the new weights before the plan is issued.
| Role | People | Paid last year ($) | New weights would have paid ($) | Difference | Does it make sense? |
|---|---|---|---|---|---|
| Total |
Show the total to the board or owner before they approve the plan.
Done when: the weights differ by role, and each role's weights carry a written one-sentence reason.
Adapted from our own incentives framework (Kearney era, 2001).
From the KPIs and Incentives Health Check. Your report links the sheet for each of its moves.