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I think it speaks to the whole philosophy (or strategy, I suppose) of treating everyone like adults (I think it was Michael Hammer who said this way back when in arguing for process-centred organizations).

If we believe in pay-for-performance - be it at the organizational level and/or individual level - then we all need to understand that sharing in the risks and rewards of running the business are central to success.

We may not like not receiving a bonus that's less than the year before, but we'll understand why that may be the case and would have made the same decision.

The transparency of the strategic objectives, metrics and targets need to be clear at the beginning of the year so that everyone will have a fighting chance to make a difference through innovation and collaboration.

Interesting topic, for sure!

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