In essence, Incentive Marketing Programs are aimed at the sales and marketing functions, incentivising the channel of distribution to achieve objectives. Incentive Management, or Performance Improvement Programs, on the other hand, are run by a company, for their own staff, to support the achievement of specific corporate objectives. Incentive Management is needed because of the evolution taking place in commerce and industry today. Company structures are flattening with management - employee relations changing to incorporate greater employee involvement in decisions. As organisations evolve to accommodate new structures and attitudes, so the need for effective change management becomes necessary.
Transition is often painful, and can be a delicate balancing act.
Fig 1 shows that strategic re-alignment must happen parallel to the cultural process. An attempt to adjust the one side of the picture without addressing the complimentary side will result in failure. Properly planned and administered, the program should improve the quality of the company's product regardless of what it is. A knock-on effect must then cycle through end user satisfaction, market share and profit, ending up in shareholder happiness. Training is a critical element in this cycle.