April 1998

Plan Awards Programs with SMART Moves

When President Clinton created the National Performance Review (now known as National Partnership for Reinventing Government) on March 3, 1993, and appointed Vice President Gore as its leader, he established the longest running Government reform effort of this century. That same year saw enactment of the Government Performance and Results Act of 1993 (known as the Results Act), which requires agencies to work differently - by establishing strategic plans, setting goals, measuring performance, and reporting on performance. Because of these two efforts, one common theme has emerged: change. Agencies have had to change - to become more customer-focused and results-oriented. Now they must find the right incentives to help employees achieve the desired results.

• How To Begin
• Applying This in Your Agency

How To Begin. According to Thomas B. Wilson in his book, Innovative Reward Systems for the Changing Workplace, all effective reward systems have some common factors. Wilson describes these attributes with an acronym - SMART, which stands for:

• Specific. Focus on desired behaviors and provide employees with a clear "line of sight" between actions and expected results.
• Meaningful. The value of the reward is "worth the effort" to both the employee and the organization.
• Achievable. The goal or result must be seen as achievable, though not necessarily easy.
• Reliable. The incentive must be delivered is the result is achieved.
• Timely. The incentive must be provided in a timely manner to reinforce the desired behavior(s).

Applying This in Your Agency.

The best place to start when designing a new awards program that supports organizational goals is with the agency's strategic plan. Solicit a team of volunteers interested in improving the awards program. (Remember, employee involvement in the design is crucial to the success of any component of a performance management program.) Have the team use the strategic plan as a road map for designing the awards program. They might begin with an approach that uses Wilson's SMART factors:

1. Specific. Look at the strategic plan and select no more than five measurable goals or desired results to focus on. Decide how employees will receive feedback on their progress toward the specific goal because communication is a crucial factor in the success of a strategically - designed awards program.
2. Meaningful. Determine what managers and employees value. It may be better to have a few high-profile, high-value (not necessarily monetary) awards than many small awards.
3. Achievable. Don't ask the impossible. Goals can change from year to year as employees are able to achieve them.
4. Reliable. Make sure promised awards are delivered.
5. Timely. If award delivery is on a timetable, make sure it stays on schedule or as soon as possible after the result is realized.