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Ep. 16: Compensation – The ONLY Way to World-Class (2 of 4)
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Andrew continues in the DEEP philosophical explanation so often needed for Leaders and Executives to have the courage to implement creative and revolutionary Compensation Systems. Reed drives directly into a discussion of Outliers - Companies that operate with World-Class Quality and Profits - those operating in the 90th percentile statistically over extended periods of time. Reed points out that 100% of the companies MVI has measured over 27 years that operate in the 90th percentile use such methods…without a single one using traditional or average methods. Not even one!
In this episode, Reed also addresses “structuring your compensation system to flex with the fluctuations of revenue” so that a company can lock in, to a large extent, their Profit Standard. He also speaks on the creation of a “System of Mutual Reliance” where all departments and parts of the organization operate as an integrated, cohesive whole. He also shares the MVI success formula - Fewer People Paid Well – and the benefit of liberally SHARING profits with all employees and team members who are 1) Doing the Standards and are 2) Creating Value.
Chapter Markers
(00:00) Intro
(01:09) Outliers vs. The Herd – 50th percentile vs. 90th; benchmarking reality checks.
(04:35) Non-Traditional Pay – 90th-percentile orgs all use creative compensation.
(06:11) Turnarounds via Comp – Incentive + disincentive; get past the fear barrier; stop “Pampers” pay.
(07:58) Profits & Reserves – Build a fat, good bank account; value quality over speed.
(10:14) Service As Proof – Three-ring phone rule; training systems that create delight.
(11:10) Paycheck = Report Card – Compensation teaches standards every payroll.
(12:34) Meaning > Money Alone – Culture, not cash, keeps people.
(13:40) Old Options Don’t Scale – “Hard-ass” management vs. structural comp systems.
(15:20) Nature of Incentives – Organisms move toward payoffs; include non-financial rewards.
(18:14) Fairness & Flight Risk – Salary inequity drives top talent away—fix it in the system.
(26:08) Labor Logic – Labor is #1 cost → design comp first; flex costs with revenue; mutual reliance.
(32:45) Share the Wins – Fewer people paid well; comp builds confidence, signals winning.
(36:22) Plain Talk & Courage – Speak clearly, act deliberately; let the system do its work.
Song: If All the World Were Right - andrew reed & the liberation
Album: If All the World Were Right (Trilogy II Album 1)
Social Media Links
Official Website: www.multiviewinc.com
YouTube: https://www.youtube.com/user/mvimedia
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MVI Phone #: (828) 698-5885
Click here to view the episode transcript.
Watch out for the next message, every two weeks on Monday @ 7:01am EST!
“Almost every organization that’s been rescued or completely turned around… It’s come through the compensation system.”
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