LAIP Helps Management Reward and Focus on Individual and Team Performance

IS Communications Core Leader

[This article is intended for LAIP-eligible core leaders. Not all formerly-MIP-eligible core leaders are eligible for the LAIP program, so check with your core leader or HR partner if you have questions.]

For the last few years, we’ve had the MIP (Management Incentive Program) that provided a bonus to eligible core leaders (typically those above a certain level with direct reports). The MIP program included both system-wide “above the line” metrics that accounted for 55 percent of eligible management’s bonus and IS-specific “below the line” metrics that accounted for 45 percent of the bonus that will be paid out for 2018 this coming spring.

Effective in 2019, we now have the LAIP (leadership annual incentive program), a program that replaces MIP and other previous incentive programs across PSJH. It is a major shift in how we evaluate and reward performance across the organization, but key differences from MIP are:

  • LAIP still has a PSJH baseline of hitting 80 percent of our system budget “trigger” goal, but the metrics eligible leaders are evaluated on and that are tied to their bonus are more personal.
  • Eligible leaders will set two to three personal goals with their core leaders and document them in SuccessFactors, as well as enter a shared IS “goal in common.” Some functional groups within IS may also select to have ONE shared team goal (no more than one, as the intention is for two to three goals to be personal stretch goals of the individual core leader).
  • LAIP-eligible leaders and their core leaders will meet at least quarterly to touch base on their progress toward these goals throughout the year.
  • LAIP’s personal goal-setting allows leaders to be both more rewarded for their personal contributions to IS and PSJH success, but also more accountable to hitting specific goals that they can directly control.

Look for communications from the LAIP Education program alias in your inbox. LAIP-eligible leaders were invited via this email address to educational webinars that occurred Jan. 25 to Feb. 8. Whether you attended those webinars or missed them, we also encourage you to invest time in reviewing the following.

Action item for LAIP-eligible leaders

  1. Spend the 11 short minutes it takes to watch the LAIP overview video.
  2. Visit HealthStream and search “LAIP” from the Catalog tab to find the two modules to complete.
    • 15-min. program overview and evaluation
    • 45-min. course on setting and tracking metrics
  3. Discuss your goals with your core leader and enter them in SuccessFactors by Monday, March 25, 2019.
  4. When you draft/enter those goals, make sure they are both stretch goals and measurable goals with a clear baseline for evaluation. Also make sure that one of the five goals you enter is our cascaded shared IS goal.
  5. If you’re a leader with LAIP-eligible caregivers, make sure you’ve proactively scheduled quarterly check-ins to discuss progress on LAIP goals throughout 2019.

Action items for the managers of LAIP-eligible core leaders

  • Ensure you’re scheduling meetings with LAIP-eligible core leaders you manage this week and next, ahead of the March 25 LAIP goal entry deadline.
  • Ensure that your caregivers understand that the cascaded “IS metric in common” is one of the four or five goals they enter.
  • Talk as a leadership team with your pillar and functional VP+ leadership about what cascaded goal your functional area may want to include as one of the goals. (Since one of these two allowed cascaded goals is already our shared IS goal, your management may only cascade one additional shared, cascade goal. The other two to three goals must be the core leaders’ personal stretch goals.)
  • Ensure that the remaining two or three goals your eligible core leaders enter for their individual performance are truly stretch goals, with a clear baseline established for evaluation.
  • Look for education materials from the LAIP program and HR partners about the new reports available to you via SuccessFactors in 2019.
  • Look for education materials later in the year as you start thinking about how our new guidelines for evaluating and calculating actual payouts, once our incentive pay pool is set. This year, you will have more discretion about how incentive pay is distributed across eligible members of your team.

Contacts

If you have further questions about LAIP or the Performance, Development and Merit processes, please visit the HR portal or contact your team’s HR business partner.

 

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