Advances in technology and the widespread availability of information make
it difficult to hold a technological advantage over the competition for any
length of time. Management style is becoming our single-most-important com
petitive advantage in today's market. The use of performance compensation t
ools, combined with "soft-skills" education and training, can dramatically
improve shop performance, Presented here is a structure for effectively imp
lementing a performance compensation system that will continually improve e
mployee performance and promote employee motivation. During the two years t
his performance compensation program has been in place, the gross company r
evenue grew 135 percent in the first year and 66 percent in the second.