Money is a method for exchange of goods, ideas, performance, etc. This is the basic purpose of money. Money, itself, has no value. The value of money is set by the markets, exchange rates, and agreements for exchange of labor or thoughts. Thus, money is the means and not the end. Money provides the means for other activity including but not limited to food, shelter, entertainment, education, etc. Most people also strive for a better life, and money provides you the ability to explore opportunities.

Enterprises use money to compensate you towards achieving the goals and objectives of your organization. While there are non-monetary compensations, the grocer will only take money. How you compensate the key personnel in your enterprise, defines the future of the organization. If your bonus depends on quarterly results, you will think and behave to this target. Long range development is at risk. It is necessary to have good current results that build for the future. You get to the future through the actions of today. The following is an idea how you might be able to develop a framework for growth. It is possible to have favorable quarters, if these results ensure the future.

Here is an idea on how this might work. Bonus payouts should be over a five-year period. For example, if you earn a bonus of $100,000 this year you get $20,000 this year and the next four. Each future year in this five-year plan depends on the profitability of that year or improvement from last year. This is an easy means for keeping everyone thinking about the future at each month and quarter. This is an easy but powerful paradigm shift. Another way is to use stock instead of money. Defining long range compensation will favor good results today and ensure tomorrow.