Aligning Compensation With Strategy: Is This Even Possible?

Every year as we gear up for compensation season, we start off with big picture questions like – What are we trying to accomplish this year? Is our compensation system well aligned with our strategy? Are there changes we should communicate now to better meet our goals and be more transparent? My advice – even if "strategic alignment" is the holy grail of compensation design, it's almost impossible to achieve. So do your best but keep your powder dry.

You're wrong if you think your compensation structure - with all its carrots and sticks - is your most effective strategic tool. Compensation is a blunt and rudimentary tool, like the wheel. It's a vitally important part of the machinery and your organization will go off the rails if it's not working properly, but it's not a mechanism you can use to inspire your legal team to greater heights or to achieve new strategic things.