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Rewards for Information Specialists

Advancement into “management” will be the exception, for the simple reason that there will be far fewer middle-management positions to move into.

Opportunities for specialists in an information-based business organization should be more plentiful than they are in an orchestra or hospital, let alone in the India civil service. But as in these organizations, they will primarily be opportunities for advancement within the specialty, and for limited advancement at that. Advancement into “management” will be the exception, for the simple reason that there will be far fewer middle-management positions to move into.

But to professional specialists—and to their management colleagues—the only meaningful opportunities are promotions into management. And the prevailing compensation structure in practically all business reinforces this attitude because it is heavily biased toward managerial positions and titles. There are no easy answers to this problem. Some help may come from looking at large law and consulting firms, where even the most senior partners tend to be specialists and associates who will not make partner are outplaced fairly early on. But whatever scheme is eventually developed will work only if the values and compensation structure of business are drastically changed.

ACTION POINT: How can you alter the compensation-and-reward structure of your organization to reflect the reality that promotions are either horizontal or outside of the organization?

The Ecological Vision

* Source: The Daily Drucker by Peter F. Drucker

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