Be careful of the way paid KPIs can unexpectedly distort behaviour: make sure you are paying for what you want (they won't do the wrong thing) and all of what you want (they won't neglect some right things).
John Kotter says that the change process takes time and goes through several different phases in a successful change effort and that a mistake made during any phase of the change effort can have a negative impact on the organization. Kotter outlines an eight step process with suggestions to help organizations transform.
Of the four aspects of the P A I D model, People are the most difficult. Irrational, unpredictable and fussy, people take care and hard work to get maximum efficiency and effectiveness for the business.
This is a collaborative site. If you eat at the buffet for free the decent thing to do is to contribute some food. So get thinking and then submit an idea or article or story. Or let's get some robust debate going in the comments, to knock the ideas into shape.
Remember we are totally committed to cutting the cost of IT operations. "Better" is a useful by-product: "cheaper" is our goal.