To prevent engineers from gaming output-based pay, 10X assigns a "Technical Strategist" to each project. The engineer is paid for output, but the strategist is incentivized by client retention and account growth (NRR), creating a healthy tension that ensures high-quality work is delivered.

To ensure genuine collaboration across funds, Centerbridge structures compensation so a "substantial minority" of an individual's pay comes from other areas of the firm. This economic incentive forces a firm-wide perspective and makes being "part of one team" a financial reality, not just a cultural slogan.

Granting stock options is only half the battle. To make equity a powerful motivator, leaders must constantly communicate a clear and believable narrative for a future liquidity event, such as an acquisition. This vision is what transforms paper ownership into a tangible and valuable incentive in the minds of employees.

To make role-playing an effective training tool, sales leaders must demonstrate vulnerability by going first in front of everyone. This signals that the goal is collective improvement, not performance evaluation, and encourages reps to engage openly without fear of judgment.

While bonuses tied to revenue incentivize employees to perform specific tasks, they are purely transactional. Granting stock options makes team members think holistically about the entire business's long-term health, from strategic opportunities to small cost savings, creating true psychological ownership.

Don't hire more reps until your current team hits its productivity target (e.g., generating 3x their OTE). Scaling headcount before proving the unit economics of your sales motion is a recipe for inefficient growth, missed forecasts, and a bloated cost structure.

To solve misalignment, the company cascaded OKRs from the CEO down. Critically, regional leaders were made 'champions' of key pillars like user acquisition. This gave them ownership and a direct voice in shaping product solutions, turning potentially adversarial relationships into collaborative partnerships.

Structuring compensation around a single, firm-wide P&L, rather than individual deal performance, eliminates internal competition. It forces a culture of true collaboration, as everyone's success is tied together. The system is maintained as a meritocracy by removing underperformers from the 'boat.'

Your company doesn't need to invent the perfect way to handle every sales challenge. The "gold standard" already exists within your team. The goal of an SKO is to create interactive forums, like role-plays, to discover and amplify this hidden, peer-generated brilliance.