Ep. 19: Compensation – The ONLY Way to World-Class (5 of 6)
In this 5th installment on COMPENSATION from the Mountain, Andrew gets practical: the BIG THREE—a Modest Base, Standards Pay, and Individual/Unit Performance Pay—and why pay must include incentives AND disincentives to teach cause-and-effect. He shows how to build Attitude/Happiness into Standards, why hourly is the worst (time expands), and how to classify pay (hourly, salary, piecework, performance) so people can own results. Then the rollout: set a HIGH Profit Standard, vet legality, tune the Chart of Accounts, separate Performance Pay GL (based on savings), run dynamic feedback instead of budgets, expose team results on a transparent Hall of Fame/Hall of Shame report, wire EMR/ops systems for objective monitoring, move to semi-monthly, push roles exempt where legal, and stress-test the model assuming 100% hit their targets. Finish with Accountability Contracts so the system Self-Regulates—creating owners, not renters—and a culture that wins.
Chapter Markers
(00:18) Why Compensation Again — “All of life is compensation… two sides of the magnet.”
Chapter Markers
(00:18) Why Compensation Again — “All of life is compensation… two sides of the magnet.”
(02:21) The Big Three — Modest Base • Standards Pay • Individual/Unit Performance Pay
(03:26) Modest Base Done Right — Prevent comfort-drift; avoid “hang back and get chips”
(04:25) Standards Bucket — Accountability lever; add/deduct with evolving needs
(05:49) Performance/Unit Pay — Controllability → motivation; avoid slack in team pools
(07:18) Attitude/Happiness — Make attitude a standard; “feel the pain” for poor attitude
(09:25) Four Classifications — Hourly (worst), Salary, Piecework, Performance (MBI-ized)
(11:09) Quality Records — 5,553 per 1,000 no-screw-up benchmark; customer delight
(13:10) Methods Menu — Per-unit, minimums, excellence thresholds, ranges
(14:43) Critical Path Rollout — Set Profit Standard (very high); legality; chart of accounts
(20:09) Performance GL — Separate accounts; pay from “savings” so wins aren’t punished
(22:22) Dynamic Feedback — Percent-based ops, not static budgets; three core reports
(24:27) Hall of Fame/Shame — Transparent team/location report drives behavior
(26:40) Wire the Systems — EMR/ops reports detect deviations; easy bonus logic
(28:15) Pay Cadence — Semi-monthly; smoother financials; protect manager bonuses
(30:37) Move Exempt (Legal) — Treat pros like pros; avoid time-expands trap
(32:08) Set Frontline First — Then immediate managers → indirects → executives
(39:47) Stress-Test 100% Win — Design so everyone hitting targets doesn’t break you
(40:17) Objective Monitoring — Accountability gap is human—so make it structural
Song: If All the World Were Right - andrew reed & the liberation
Album: If All the World Were Right (Trilogy II Album 1)
Social Media Links
Official Website: www.multiviewinc.com
MVI Phone #: (828) 698-5885
Watch out for the next message, every two weeks on Monday @ 7:01am EST!
“If you’re paying people hourly, just realize it’s the worst way… the job will expand to fill the time allotted.”
“If you’re paying people hourly, just realize it’s the worst way… the job will expand to fill the time allotted.”
