Diagnostic of existing systems:

PBB has developed a rigorous diagnostic approach based both on mathematical processes exclusive to PBB and on company-specific investigations. The diagnosis of a company's variable pay systems takes place in two stages. The first stage involves collecting information on the characteristics of scheme participants, the various elements of their overall remuneration and their performance. Using exclusive processes, PBB analyses this data statistically, permitting identification and explanation of the effects produced by each element of the variable pay system and measurement of deviation from expected effects. In short, this part of the diagnostic process produces an “x-ray” of the variable pay scheme's effectiveness and value for money.

The second stage is oriented towards those people that have a vested interest in the scheme, notably scheme participants. How do the decision-makers and beneficiaries perceive the work of the first stage? What vision do they have of the system operated by their company?

The juxtaposition of these two images reveals any dysfunction resulting from an erroneous interpretation of scheme effects by participants.

The diagnosis is now complete and the final report includes a set of recommendations that is presented to General Management for approval. This is a defining moment, when decision-makers can evaluate the advantages of a scientific approach to variable pay.