Reply: Internal Competition & Incentive Structure

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Let's talk about your time as a partner running Atlas Reply. One thing about Reply is that it's a carefully structured organization with clear rules, incentives, and targets. Can you take me back to when you became a partner at Atlas Reply? They set your goals for the year and explained your incentives. Can you walk me through the considerations you had to be the CEO of this company? It's like being an entrepreneur. Can you walk me through those dynamics?

My initial task was, "You're going to run this company. Your targets are this amount of revenue for next year, this operating profit, and this operating profit percentage." These three measures were the ones determining my incentives. This applies to every partner. Every partner has targets in terms of company revenue, operating profit, and operating profit percentage.

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Let's talk about your time as a partner running Atlas Reply. One thing about Reply is that it's a carefully structured organization with clear rules, incentives, and targets. Can you take me back to when you became a partner at Atlas Reply? They set your goals for the year and explained your incentives. Can you walk me through the considerations you had to be the CEO of this company? It's like being an entrepreneur. Can you walk me through those dynamics?

Normally, each company has yearly targets. Unless you're in a specific phase like shutdown or startup, they expect you to grow revenue by 10% or more year over year and improve the operating profit percentage. Reply expects each company, which is fully in charge of selling, delivering, and handling customer relationships, to deliver projects with a cost of delivery over revenue ratio of 0.6. If I find a deal, regardless of where, as an entrepreneur, I'm able to deliver as a company. This deal, before starting, is expected to have a cost of delivery over revenue of 0.6 or less. I don't need to ask anyone; I just proceed.

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Do you think, based on your interactions with other partners, that they stay on average for five or more years, or is there more turnover at the partner level?

I don't have the statistics, but I think that five or more years is a reasonable number. What can be stressful at Reply, which might be different from other companies, is the level of internal competition at the partner level. This competition can be, not necessarily, but can be very high.

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