Reward Your Star and check out the underperformer
What get measured get done!
What get rewarded get improved!
But what happen with most of the organization? most of them they do not have a clear policy how to reward the star and check out the under performer.
A brilliant organization always have stars to bring to the next level of success, but if those stars are not rewarded as they deserve, very quickly they will move to others company, as head hunters are calling them out and competitors are wiling to lure them over with 30% more of fix pay.
So if you do not have a unlimited open scheme on how to reward your star, I bet you every year you will loose your top performer and worst they take away your strategy and implementation skill to your competitors.
The same with the under performer, you should have a clear KPI to measure every body, if they are under your performance standard for a few appraisal period, it is time to check them out, it is very wrong to still keep them in the company, as this move will automatic lower down the performance expectation for the whole team.
So setting up a transparent, clear, performance base remuneration system is crucial to build up a high performance team
A dynamic company should have a certain rate of turn over which automatically squeeze out the under performer and attract new blood to join the company, hence keeping the company young and agile.