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Robert California wants Andy to double the branch's profits in the next quarter. Mr. Bernard tries to figure out how to get this done, and settles on an incentive program. He comes up with a bunch of cheap toys that workers can redeem points for, but that's not good enough.
Jim eggs Andy on until he offers up wearing a dress, running around the office naked, and finally getting a tattoo on his butt. The gang settles on that for their goal and gets right to work. By the end of the day, they have earned enough points to get Andy the tattoo.
The entire group heads to the parlor where Andy receives his ink. Without his knowledge, the group settled on a dog with "Nard" on it. A "Nard Dog" if you will.