Rainbarrel_Case
HBR CASE STUDY
The Best-Laid
ncentive Plans
by Steve Kerr
Rainborrel Products knew what it needed from its workforce and created a performance management system to get it
Now, it's iiving with the consequences - most of them unintended.
H
IRAM PHILLIPS finished tying his bow tie and glanced in the mirror Frowning, he tugged on the left side, then caught sight of his watch in the mirror. Time to get going. Moments later, he was down the stairs, whistling cheerfully and heading toward the cofFeemaker. "Naaah." Then, with a wink, Hiram shrugged on his trench coat, grabbed his travel mug, and went out the door.
Fat and Happy
It was true. Hiram Phillips, GFO and chief administrative officer of Rainbarrel Products, a diversified consumer-durables manufacturer, was
"You're in a good mood," his wife said, lookin a particularly good mood. He was heading ing up from the newspaper and smiling."What's into a breakfast meeting that would bring noththat tune?'Accentuate the Positive'?" ing but good news. Sally Hamilton and Frank
"Well done!" Hiram called out. "You know,
I do believe you're picking up some pop culture Ormondy from Felding & Company would no doubt already be at the office when he arrived in spite of yourself." It was a running joke with them. She was a classically trained cellist and on and would have with them the all-important the board of the local symphony. He was the one numbers-the statistics that would demonstrate the positive results of the performance manwith the Sinatra and Bing Grosby albums and thetaste for standards. "You're getting better at agement system he'd put in place a year ago.
Hiram had already seen many of the figures in naming that tune." bits and pieces. He'd retained the consultants to
"Or else you're getting better at whistling." She looked over her reading glasses and met his eye. establish baselines on the metrics he wanted to watch and had seen various interim reports
They let a
The Best-Laid
ncentive Plans
by Steve Kerr
Rainborrel Products knew what it needed from its workforce and created a performance management system to get it
Now, it's iiving with the consequences - most of them unintended.
H
IRAM PHILLIPS finished tying his bow tie and glanced in the mirror Frowning, he tugged on the left side, then caught sight of his watch in the mirror. Time to get going. Moments later, he was down the stairs, whistling cheerfully and heading toward the cofFeemaker. "Naaah." Then, with a wink, Hiram shrugged on his trench coat, grabbed his travel mug, and went out the door.
Fat and Happy
It was true. Hiram Phillips, GFO and chief administrative officer of Rainbarrel Products, a diversified consumer-durables manufacturer, was
"You're in a good mood," his wife said, lookin a particularly good mood. He was heading ing up from the newspaper and smiling."What's into a breakfast meeting that would bring noththat tune?'Accentuate the Positive'?" ing but good news. Sally Hamilton and Frank
"Well done!" Hiram called out. "You know,
I do believe you're picking up some pop culture Ormondy from Felding & Company would no doubt already be at the office when he arrived in spite of yourself." It was a running joke with them. She was a classically trained cellist and on and would have with them the all-important the board of the local symphony. He was the one numbers-the statistics that would demonstrate the positive results of the performance manwith the Sinatra and Bing Grosby albums and thetaste for standards. "You're getting better at agement system he'd put in place a year ago.
Hiram had already seen many of the figures in naming that tune." bits and pieces. He'd retained the consultants to
"Or else you're getting better at whistling." She looked over her reading glasses and met his eye. establish baselines on the metrics he wanted to watch and had seen various interim reports
They let a