An Employee Bonus System Based on Objectivity Rather Than Subjectivity

Service Dashboard and Measurement System Design
Industry Health Care
Company A 20 physician, 7 mid-level provider specialty medical practice serves parts of three states spread over a wide geographical area.
Situation This practice has a strong strategy growth plan encompassing many joint ventures. At the same time operational improvements have been required to maintain a fiscally sound practice.  Management and employees have worked hard to succeed at both endeavors. Practice leadership was interested in creating a fair and equitable reward system.
Goal Develop an employee bonus system that rewards for consistent high quality work.
Approach Gained agreement on the main, high-level steps of the core business processes and identified measures for each step. In collaboration with management, the tracking and reporting system was updated to align with the practice’s dashboard. Completed two 6-month audits to ensure the measurement system was sustainable and would provide the data necessary to pay employee bonuses if financially feasible. A bonus prototype was designed and beta tested in one work unit.
Results Due to economic conditions bonuses have not been paid. However, the dashboard and work unit measures remain in place and are used to manage practice productivity and location changes.