I recently had an interesting discussion with a manager of a large IT companies on the best way to make a successful project. This Manager suggested that if we have a difficult project the best way, to motivate people bonus would offer a big Monetary Union, if the project completed on schedule. This was something I don't agree.
Suppose that are in a big tough IT project with 50 other people who work in it. You do not imagine, really that interested in this project. Imagine that there are many problems that not your fault and you. Typical things not clear how requirements are and at any time, customers don't know what you want, technology and tools are outdated and need input from other projects that are behind schedule. Imagine if 50% of the project must be done, but you haven't really started, because of the large problems. So really not you have the chance to do the things you should do and really rather do something else. It would really be a big difference make result if your manager told you that we you a $5000 gets extra numbers when this project on the original, finishes six months from now?
What is try people generally in such a case to hide problems. Try everything look beautiful and I hope that nobody noticed the huge problems deep inside the software. The result is often that can stop the project on schedule, premiums are paid, but the quality is horrible. And once the client notices this (you do always, sooner or later), there are big problems. And the developers really cynical because you will be paid bonuses for the production of waste. Would I they once were, in this kind of project that you do it again after you finally by the project?
Bonuses on completion of a project schedule and budget are not the best way to developer motivate. Even if it some sort of quality measurements. Actually quite often bonuses cause new problems, poor quality is a typical one. But if money doesn't work, then what? The answer is quite simple: ask people what you are interested and what new things you want to learn. And offer people the associations you are interested in. This is a simple and powerful way to motivate people.
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