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so, as a practical example, if you have 10 members on your team, $100,000 in comp, and 30 hours per week to support them, how will you invest?
it is a fixed pie that you have to work with, so you need to make hard choices
in your team of 10, you’ll have 1 star, 3 potentials, 5 work horses and 1 under achiever
the star and potentials will add a vastly disproportionate value to your goals
comp your stars extremely well so that they stay, and then get out of the way so that they can achieve
these guys don’t need much time. they are well trained already. all they need are goals and air cover
Potentials have the highest return on time
comp them above market, but invest a much greater relative percentage of your time so that they become stars
Comp your Work Horses fairly and spend some time helping them understand & achieve their goals
But signal that while it is OK to, "just get the job done," if they stretch themselves towards the Potential category, you'll respond with greater investments
Do not comp your under achievers
Instead, spend a disproportionate amount of time to help them retrain and/or move out of the function where they are under performing and into another function where they can become a star
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