To ensure universal focus on a key clinical outcome, healthcare company Alidaid links 20% of its corporate bonus pool to patient blood pressure control rates. This financially aligns every employee, from executives to engineers, with the primary mission of improving patient health, creating a powerful incentive for focus and collaboration.
Related Insights
By allowing insurance companies to price plans based on biometric data (blood pressure, fitness), you create powerful financial incentives for people to improve their health. This moves beyond abstract advice and makes diet and exercise a direct factor in personal finance, driving real behavioral change.
Successful healthcare systems like Kaiser improve blood pressure control not through better individual doctors, but by implementing system-wide solutions: standardized treatment protocols, empowered care teams, and actionable data registries. This shifts the focus from individual effort to scalable processes.
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.
To foster deep motivation, leaders must explicitly connect every employee's role, no matter how small, to the ultimate mission. Ger Brophy explains how showing a factory worker that the product they make is critical for a specific cancer treatment allows them to feel personal ownership of the patient impact.
To humanize R&D and maintain motivation, biotech leaders bring patients into the company. This practice directly connects scientists with the human impact of their work, grounding the entire team in their shared purpose, especially on difficult days.
The core of value-based care is a business model where preventing adverse events like strokes is more profitable than treating them. This fundamental financial alignment, not just quality measures, drives organizations like Kaiser to invest in team-based care and proactive protocols, a reality that clinicians within the system may not even perceive.
Elf uses a unique compensation model where every employee's bonus (from 0-200%) is tied to the same company-wide adjusted EBITDA metric. This aligns operations, sales, and marketing on a shared financial fate, fostering cross-functional collaboration and a strong sense of ownership.
To break down silos and encourage a platform mindset, Microsoft CEO Satya Nadella changed performance reviews. Every employee had to document how they contributed to the success of others, directly linking collaboration to their compensation. This made the cultural shift tangible and non-negotiable, moving beyond mere talk.
CIBC drives enterprise-wide focus on customer experience by linking a significant portion of variable compensation for every employee, from the CEO to the frontline, to a 20-metric CX index. This ensures CX is not a siloed function but a shared responsibility.
To ensure accountability for societal impact, Mars directly links 40% of its CEO's compensation to non-financial metrics, including sustainability goals. This structure challenges the conventional, finance-only incentive models prevalent in public companies and hardwires long-term purpose into executive performance.