Performance Management 113
as performance incentives, nor can they exempt their employees from
taxes, but they do use monetary rewards. Bernie Ebbers of MCI World-
Com makes certain that everyone in the firm has stock options and so
is paid like an owner, much like David increased the sense of ownership
in his ‘‘mighty men’’ by making sure that all received a share of the
spoils of war. Says Ebbers, ‘‘You can’t go through the building without
seeing charts... showing them what those options are worth.’’^3
Charles Heimbold, CEO of Clairol, also makes sure everyone in his
company has stock options. He reasons that if he gives people owner-
ship, accountability, and knowledge, they’ll contribute more to the
company’s success because they can see the link between their perfor-
mance and company performance. One example was Clairol’s Herbal
Essences, a product that was introduced in the 1970s and lagged terribly
in the 1980s. Everyone on the Clairol team knew they needed to repo-
sition the product or ditch it. In a company where performance was
not as closely linked to reward, it would have been ditched. But Clair-
ol’s team saw the product’s potential, and they repositioned it for the
Generation X and thirty-something market. Sales soared, as did the
value of everyone’s stock options.
INSPIRATION
People do not respond just to ‘‘hard dollars,’’ however. Inspiration by
a leader often plays a major role in spurring people on to maximum
performance. Moses inspired the Hebrews to traverse a desert in pursuit
of the ‘‘land of milk and honey.’’ Nehemiah inspired people not with
money but with a goal that was larger than money—the reconstruction
of the wall around Jerusalem. And Jesus attracted his first disciples with
an inspiring new paradigm: ‘‘I will make you fishers of men.’’ They
were transformed simply by joining his organization, before they per-
formed a stitch of work.
At Novell, Eric Schmidt has an annual dinner as part of the Presi-
dent’s Award program to honor unique, substantial individual accom-
plishment. Spouses are invited, plaques are awarded, and for good