Differentiation of performance and performance targets learns practical application the Wolfsche onion in the context of the design of variable remuneration systems, determination of input and output indicators in controlling, but also in the definition of strategic corporate goals. In the area of variable compensation, relevant indicators of the success be determined using the Wolfschen onion. All this services and activities are analysed on their proximity to the target and in an order. Applying example for the Wolfsche onion In the framework of the implementation and design of a variable compensation system for sales staff formulated the line generating new contracts as the target direction. The steps to success of employees in the typical course: Telephone cold acquisition of companies sending of brochures and documents renewed contact tender presentation at the customers order from step to step, such as removing Peel an onion, the number is reduced which naturally remaining potential customers.
Only 30 to 50, which eventually generates an order of 1,000 cold-called businesses remain so. In this example, the “number of cold Akquirierungs calls” as a performance measure (LMG) is to consider the orders a success metric (EMG). The number of the offers or the presentations for the customers, however, are referred to as a results-oriented performance measures (eLMG). An incentive for the increase in the number of initial calls used performance measurements in variable compensation systems when true to the number of charged first calls is used the logic of “more initial calls, more contracts” as a measure for the variable remuneration. The advantage of such pure input and performance measurement lies in the direct control by the employee.
Here are just a few external influences. Therefore, the acceptance of performance-oriented variable remuneration on employee side is quite high. But the company can finance the variables Remuneration in difficulties come when the number of new contracts not in same relationship develops.