How to motivate the head
First, adjust the salary of the Manager on a quarterly basis, linking it to the profit of the company. Thus, he will feel responsible for the company's efficiency. Salary should be tied to profit, change, cost, profitability. If the profit is zero, the head will receive a scheduled salary if profit takes negative values, it receives a lower salary. If the company successfully develops, the top Manager gets a bonus.
Secondly, the control should be transparent, that is, the Manager must know in advance what kind of indicators of its work will be reviewed by management. So you, as the business owner, decide what the performance is of paramount importance. This may be the increase of business capitalization, the increase in the value of assets, achievement of planned results. The Manager needs to know that he trusted that the assessment will be made impartially according to certain criteria, it is known in advance. The system must be labeled in a clear contract Manager, in which information will be set out exhaustively, that is, it should have no issues.
Thirdly, provide the moral satisfaction of the Manager of his status. When his salary and position is high enough, some incentives may not be enough. To increase motivation will allow the recognition, the opportunity to teach peers and subordinates, enhancing the role head when making strategic decisions about the promising directions of development of the company.
Fourthly, the scheme should be correlated with the real possibilities of the company. That is, calculate in advance whether a company is able to pay managers according to the developed scheme. After all, once you start to introduce a scheme, it would be impossible suddenly to abandon it managers will lose trust. Therefore, it is necessary to correlate the diagram with the realities of the market at the time of analysis and in the long term.