The compensation packages for most employees, especially those below the C-Suite, unfortunately do not take into account percentages accrued from growth projects. At GE for example, three executives below the C-Suite left their jobs in spite of creating value worth over US$ 100 million, as the recognition they got for this was puny, and even less was additional investment towards their teams. Companies should thus incorporate “share of growth” and not just market share. Leaders whose business innovations create new business streams must be rewarded additionally. Share of growth as a Key Performance Indicator has several advantages. One is that the word market itself is rather outdated because companies keep leapfrogging across product or service categories. Market share is also a backward looking criteria as one looks at past performance, not future growth on key drivers. Share of growth also generates curiosity as people then study the areas of growth while market share looks into a static worldview. It enables the allocation of greater resources towards growth areas rather than static ones.


Uploaded Date:29/06/2017

SKYLINE Knowledge Centre

Phone: 9971700059,9810877385
© 2017 SKYLINE. All right Reserved.