Here is an idea to have HR departments quivering. Gary Hamel, the American management expert, in a recent interview for McKinsey has suggested that companies adopt a 360-compensation review to drive better collaboration. He says,

Most companies are now quite comfortable with 360-degree review, where your peers, your subordinates, and so on review your performance. In the best cases, that’s all online, and everybody can see it. But I would argue that the next important step is going to be 360-degree compensation because if you show me an organization where compensation is largely correlated with hierarchy, I can tell you that’s not going to be a very innovative or adaptable organization. People are going to spend a lot of their time managing up rather than collaborating. There will be a lot of competition that goes into promotion up that formal ladder rather than competing, really, to add value. So, increasingly, compensation has to be a correlate of value created wherever you are, rather than how well you fought that political battle, what you did a year or two or three years ago that made you an EVP or whatever.

This dovetails nicely with Philip Podsakoff’s research on units in the US intelligence community that showed the single strongest predictor of group effectiveness was the amount of help that analysts gave to each other. In the highest-performing teams, analysts invested extensive time and energy in coaching, teaching, and consulting with their colleagues.