"If you try to use money to motivate behavior, you are in a powerful and dangerous place, especially with engineers and scientists," said Tom Furman, CEO of Camp Dresser & McKee, Inc (CDM), a consulting firm Environmental Engineering. Historically, CDM followed the "egalitarian" management bonus program based on quality indicators. The industry growth has slowed and competition has increased since 1991, management changed the incentive plan to tie it closer to achieving business goals. This case describes a system of bonuses and incentive compensation, and evaluation process. It ends Furman thinking about how to interpret the CDM system to reward the four CDM leaders accordingly. "Hide
by Ashish Nanda, M. Julia Prats Source: HBS 20 pages. Publication Date: November 8, 2001. Prod. # 902 122-PDF-ENG
Related Case Solutions & Analyses:
Governance and Talent Management in a Professional Services Firm
The Bottom-line Benefits of Ethics Code Commitment
Lessons from Pharmaceutical Product Litigation: Merck and the Vioxx Withdrawal Cona & McDarby vs. Merck Video Supplement
ATH MicroTechnologies: Making the Numbers
Critical Competitive Strategy Issues Every Entrepreneur Should Consider Before Going into Business
From Plague to Paradigm: Designing Sustainable Retail Environments
Gary Rodkin at Pepsi-Cola North America (B)
Expense Recognition
Procter & Gamble Canada (B): The Canadian MDO
Governance Reform at MCI
