5 Posts found for Author: Ryan Davies

Stretch targets succeed only when employees believe they can meet their goals if they try hard enough and that they will be rewarded if they do. There has to be a chance of failure in order to motivate employees to work harder. But if they expect failure and see targets as unrealistic, they will conclude that they won’t receive a bonus anyway and just stop … [ Read more ]

Content: Quotation | Authors: Hugues Lavandier, Ken Schwartz, Ryan Davies | Source: “McKinsey Quarterly” | Subjects: Management, Organizational Behavior

In our experience, a healthier stretch [target] requires companies to calibrate targets against cross-functional trade-offs. It demands that executives build trust with employees, rewarding success rather than always moving the goal up, but also that they confirm that employees succeed fairly. And it requires that there be no stigma attached to bringing out bad news, so that employees are encouraged to be transparent about their … [ Read more ]

Content: Quotation | Authors: Hugues Lavandier, Ken Schwartz, Ryan Davies | Source: “McKinsey Quarterly” | Subject: Management

Aggressive goals can dramatically improve a company’s performance. But unachievable goals can do more harm than good. Here’s how to stretch without breaking.

Content: Article | Authors: Hugues Lavandier, Ken Schwartz, Ryan Davies | Source: “McKinsey Quarterly” | Subject: Management

Companies that improve the performance of their working capital can generate cash and see benefits far beyond the finance department.

Content: Article | Authors: David Merin, Ryan Davies | Source: “McKinsey Quarterly” | Subject: Finance

Too high a discount rate can make good projects seem unattractive. How high is too high?

Content: Article | Authors: Marc H. Goedhart, Ryan Davies, Tim Koller | Source: “McKinsey Quarterly” | Subject: Finance