The document discusses The Lantern Group's services for developing total rewards frameworks and communicating incentive compensation plans. It outlines a three-step process for total rewards that includes conducting an audit, incentive plan modeling/testing, and incentive plan communication. The Lantern Group helps clients with the communication piece, developing communication campaigns using workshops, guides, videos and other materials to improve understanding of incentive plans and drive desired behaviors. The goal is to maximize the effectiveness of incentive plans through better communication and alignment with total rewards strategies.

1. Driving Performance
Total Rewards Framework &
IC Communication
Kurt Nelson, PhD

2. We specialize in
by maximizing the effectiveness of your total rewards
strategy, compensation systems, recognition
programs and incentive contests through developing
a total rewards framework and/or effectively
communicating your rewards programs.
“The central
issue is never
strategy,
structure,
culture,
or systems. The
core of the
matter is always
about
changing the
behavior of
people.”
John Kotter -
Harvard Business
School
DRIVING PERFORMANCE
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3. Total Rewards 3-Step Process
Total Reward
Framework
Conduct a total reward audit
leading to the design of
holistic total reward
framework to drive desired
behaviors
Incentive
Compensation Design
Modeling / Testing
Develop & model IC plan
designs
Incentive Plan
Communication
Create and implement IC /
reward communication plan
The Lantern Group takes a holistic approach to incentive compensation – looking
specifically at how incentive compensation fits into the larger total rewards
framework and how you drive understanding and buy-in to the plan after it has
been developed. We see this as a three-step process.
*Lantern Group helps with the blue shaded boxes and can bring in outside experts to help in the gray
shaded areas.
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4. Consulting Process Framework
Audit/Key Stakeholder
Interviews
Initial analysis and in-person
interviews with key leaders
and stakeholders
Advisory Focus
Groups
Focus groups designed to
uncover behavioral drivers
and key gaps
Employee Interviews
Phone interviews that
provide deeper insight into
gaps and proposed changes
Analysis and Framework
Assess and analyze data (program info and
interviews) to develop recommended framework
Stakeholder Alignment Summit
Summit brings key stakeholders together to gain
alignment on total rewards framework and SOPs
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5. 5
4-Drive Model of Employee Motivation

6. Enhance IC Impact
Communication / Training
Understand
Behavioral Impact
Total rewards Communication Overview
Your IC
Plans
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7. Communication Research
When direct manager’s present
compensation information –
participant satisfaction more
than doubles
Corp Executive Board - 2011
50%-70% of participants do
not fully understand their
compensation plans or how to
maximize their earnings
The Lantern Group- 2013
Graphics improves retention
by 38% and are 43% more
effective in persuading
viewers to take a desired
course of action
Minnesota School of
Management - 2006
Communicating about pay 1 time
reduces satisfaction while
increasing to 3 – 4 times improves
satisfaction by 70%
Corp Executive Board - 2011
“…most managers are
insufficiently prepared to
effectively execute and impact
their organization’s reward
programs.”
Hay Group - 2009
The top items that managers want
to know:
1. Link to business
2. How to “Win” with plan
3. Why changes occurred
4. Total Reward philosophy
The Lantern Group/ World at
Work - 2012 / 2010
x2
50-70%
x3 = +70%
+38% & +43%
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8. Communication
Campaign
Our Communication Process
IC Data collection
• Assess key data on
current and future IC
plans, contests,
recognition programs,
etc.
Incentive
Compensation
Audit
Training
Campaign
Understand participant
experience & perception
• Field interviews
• Focus groups
• Electronic surveys
Develop easy to use
training to drive
understanding and
buy-in for:
• District Manager*
• Sales Representatives
*Key audience
Develop
Communications Brand
Campaign focused on
the end users:
• District Managers
• Sales Representatives*
*Key audience
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9. 0
Communication Examples
PPT Workshops Plan Guidebooks
Maximizing My Payout GuidesQuick Reference Guides
Manager Kits White Board Videos
…and many more depending on need
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10. Typical Campaign
Plan & Field
Assessment
Overview e-Brief PPT Workshops
IC Plan Policy
Book
Maximizing My Payout Guides Follow up Field
Assessment
0
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11. Why The Lantern Group
We provide results: our process helps drive the behavior of your sales
representatives and increase the bottom line
We have experience: over 14 years of focusing on understanding how
Total Rewards and your IC plans drive behavior and in developing
marketing and communicating that drive understanding and buy-in from
the field
We have a dedicated team: our team brings expertise in both incentive
compensation/behavior change as well as communications and training –
we have design directors, account managers, training specialists, graphic
designers, copywriters, and organizational psychologists who are all
dedicated to this business
We deliver on tight time frames: we understand that plans often have
last minute changes, we plan for this and can deliver on tight time frames
We make it easy for you…
“In my 7 years with the company, I’ve never had a plan
explained this clearly to me before.”
Division Manager, BioTech Firm
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www.lanterngroup.com
612-396-6392
kurt@lanterngroup.com

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THANK YOU
www.lanterngroup.com
612-396-6392
kurt@lanterngroup.com