New research issued by the CFO Alliance charts how CFO’s in the mid market are improving company performance by including non-financial short term incentives (STI) to steer customer centric behaviour.
Among the executives polled — 46% said their company either added new performance metrics to the STI pay calculation or expect to do so in 2017.
That much change in the behaviors companies are looking to motivate with their STI programs “represents a strong indicator that companies realise there is a misalignment between incentives and key drivers of company performance,” the report said.
Participants identified four drivers of company value, and three of them are not reflected in traditional financial metrics.
Those three drivers:
- customer satisfaction
- attracting and retaining top talent
- brand management
49% of respondents recognised that they don’t have the proper incentives in place to optimise customer satisfaction.
“There’s a big disconnect here,” the report states. “The link between drivers of value and how executives are incentivised is broken. The good news is that CFOs are recognising these gaps, but they need to do even more.”
Derek Walton, QUANTIQ CFO says: “systems that connect and track these behaviours in action need to change to support this shift in incentives” he adds that “Microsoft Dynamics 365 has a great story to tell around tracking customer interaction that impacts company value”.
The stated aim behind the investment in Dynamics 365 is to make each individual more productive, more productive at delighting your customers, who doesn’t want that.
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