How to create an Incentive system for IT team (not working in an Agile way)

I agree with Marieta, she has summed up the process very well.

Characteristics of High-Performance Work Teams Although there is no simple measure of performance effectiveness for groups, and no team is identical, there seems to be a shared understanding of what makes an effective group work. High-performance work teams are generally composed of a combination of purpose and goals, talent, skills, performance ethics, incentives and motivation, efficacy, leadership, conflict, communication, power and empowerment, and norms and standards. Team purpose, goals and roles High-performing teams are synergistic social entities that work toward the achievement of a common goal or goals—short term and long term. They often exemplify a total commitment to the work and to each other. Team members do better work when their roles are clear: They know how to do their jobs and why they are doing them. Each member must understand and support the meaning and value of the team's mission and vision. Clarifying the purpose and tying it to each person's role and responsibilities enhances team potential, as does the inclusion of "stretch" goals that increase the challenge necessary to motivate team members. Talent, skills and work ethic High-performance teams begin by recruiting and retaining their best talent while quickly helping low-performing members find other places to work. Morale typically increases as performance increases. After selecting for talent, it is critical to ensure that the team members possess complementary skills (e.g., technical, problem-solving, decision-making and interpersonal skills). Team members must exhibit a sustained commitment to performance excellence, exercise candor and mutual respect, and hold themselves and their organizations accountable at both the individual and team levels. Incentives, motivation and efficacy Both monetary and nonmonetary systems that encourage high performance have a positive impact on tactical implementation of the team's goals. Over the long term, intrinsic motivators such as personal satisfaction at work and working on interesting projects provide the greatest impact on performance. In addition, a belief in one's self and abilities encourages people to take more strategic risks to achieve team goals. Leadership High-performing leaders generally accompany high-performance work teams. Essential leadership qualities include the ability to a) keep the purpose, goals and approach relevant and meaningful; b) build commitment and confidence; c) ensure that team members constantly enhance their skills; d) manage relationships from the outside with a focus on the removal of obstacles that might hinder group performance; e) provide opportunities for others without seeking credit; and f) get in the trenches and do the real work required. There is widespread agreement that effective team leaders focus on purpose, goals, relationships and an unwavering commitment to results that benefit the organization and each individual. Conflict and communication Conflict management is an essential part of becoming a high-performance team. Open communication in such teams means a focus on coaching instead of on directing and a focus on the ability to immediately address issues openly and candidly. The key to team performance is open lines of communication at all times to provide motivation, maintain interest and promote cooperation. Power and empowerment Empowered work teams increase ownership, provide an opportunity to develop new skills, boost interest in the project and facilitate decision-making. Researchers refer to the ideal situation as being "loose-tight," such that specific decision-making boundaries are constructed with enough room for individuals to make empowered choices. Norms and standards Like rules that govern group behavior, norms can be helpful in improving team development and performance. Norms for high-performance teams include open lines of communication, early resolution of conflict, regular evaluation of both individual and team performance, high levels of respect among members, a cohesive and supportive team environment, a strong work ethic that focuses on results, and shared recognition of team successes. The key is that high-performing teams actually discuss and agree to their operating rules—standards that each team member agrees to uphold and for which they hold each other accountable. Stages of Team Development Dr. Bruce Tuckman, an early psychology researcher focused on group dynamics, developed a four-phase model of team development that included forming, storming, norming and performing. Refinement by other researchers has resulted in a well-known team development process that provides a useful framework for leaders and team members seeking to understand the nature of group dynamics and their evolution. The four typically recognized stages of the process include: Forming. Individuals are trying to get to know each other and the organization and have not formed a commitment to the team. In consult with HR, project leaders provide direction and outline expectations. In addition, HR might use DISC or Myers-Briggs assessments and then facilitate a discussion about the results to help the group understand each other's differences and operating styles. Storming. In this typically rocky stage, team members may challenge the leader and each other. The leader coaches members on how to manage conflict and focus on goals and may ask the HR team to help facilitate related training. Norming. After individuals have worked through conflicts, the team begins to develop. People begin to appreciate their differences and start to work together. The leader begins to serve as a facilitator, offering encouragement and guidance. HR serves as a continuing support and can facilitate discussions or offer training as needed. Performing. At this stage, the team is fully functional, and members are able to manage their relationships and work toward shared goals. Team members feel accepted and communicate openly with the leader. The leader focuses on delegating responsibilities and must identify when the team is moving into a different stage. Other researchers have described a similar process yet attributed different names to the phases (e.g., working group, pseudo team, potential team, real team and ending with a high-performance team). Regardless of the identifiers used, high-performance work teams develop over time in roughly similar ways. As a result, this four-phase model serves general organizational purposes well, although some researchers have suggested that a fifth stage occurs when the group is disbanding: adjourning or mourning, the feeling of sadness and loss as a successful team separates. Common Types of High-Performance Work Teams Though they vary in duration, purpose and ultimate goals, organizations commonly establish five types of teams to achieve work goals. Work teams Work teams are continuing units responsible for producing goods or providing services. Their membership is typically stable, usually full time and well-defined. Work teams are found in both manufacturing and service settings and are traditionally directed by supervisors who make most of the decisions about what is done, how it is done and who does it. Self-managing teams involving employees making decisions that were formerly made by supervisors are gaining favor. Parallel teams Parallel teams pull together people from different work units or jobs to perform functions the organization is not equipped to perform well. They exist in parallel with the formal organizational structure, have limited authority and can only make recommendations. Parallel teams are used for problem-solving and improvement-oriented activities (e.g., quality improvement teams, employee involvement groups, quality circles or task forces). Project teams Project teams are typically time-limited and produce a one-time output [removed] Project-team tasks are not repetitive and involve considerable application of knowledge, judgment and expertise. As a result, membership is usually diverse, drawing from different disciplines and functional units, so specialized expertise can be applied to the project. Management teams Management teams coordinate and provide direction to their subunits and are responsible for the overall performance of a business unit. The management team's authority stems from the hierarchal rank of its members. At the top of the organization, the executive management team establishes strategic direction and manages the company's performance by applying its collective expertise and sharing responsibility for the overall success. Virtual teams A virtual team is a group of individuals who work together in pursuit of common goals across time, space and organizational boundaries. They are linked electronically by webs of communication technology (e.g., the Internet, Skype, WebEx, internal networks). Members of a virtual team coordinate their work predominantly with electronic information and communication technologies to accomplish specific organizational tasks and may never meet face to face. Virtual teams allow companies to obtain the best talent possible for a specific project without geographical restrictions. They are also generally viewed as more efficient in expenditures of time and related travel costs. See How to Manage Remote Teams Effectively. Common Barriers Faced by High-Performance Work Teams Given the importance of team-based work in today's economy, experts have focused on using evidence-based organizational research to pinpoint the defining attributes of high-performance teams. Despite varying approaches to describing high-performance teams, some common characteristics seem to be strong indicators of a team that is not functioning at its peak or that needs intervention: