1) Create a baseline set of measures from historical
revenue and expense data, from the same time period as the proposed
incentive program dates, with one-time instances removed.
2) Determine the incentive period baseline measures,
for both revenue and expense, as they would be without an incentive
program in place.
3) Determine the incremental revenue and expense
projections expected as a result of the incentive program, without
consideration of program costs.
4) Determine individual contribution of incremental
revenue and expense needed for the incentive target audience to achieve
the overall incentive program projections.
5) Determine the feasibility of individual effort
to achieve the incremental incentive program revenue and expense projections.
6) Determine the incentive award required to motivate
the target audience to achieve the projections.
7) Calculate the award investment required and
compare it to the incremental net improvement of the incentive projections.
8) Create a level playing field through the rules
structure.
9) Measure program results monthly; adjust rules
as needed.
10) Analyze final results for all participants;
implement required changes in operation based on progress toward the
overall objective, not just that accomplished by who earned the reward.
