by Don Harkey
Are you trying to build a culture of corruption within your business? Here's a great way to do it! (note: IF you are trying to build a culture of corruption, which I do NOT recommend... just wanted to be clear)
Make sure you measure everything and hold your employees to those measurements. Do not accept excuses. The message should be "hit your numbers... or else!". How does this build corruption?
Let's say I have a delivery driver. I want to set some metrics for the driver. First of all, the delivery needs to be "on time". Next, the load needs to get to the client in good condition. Finally, the drive needs to be safe. Good news (for those seeking corruption)... I can measure all 3 of these conditions. Furthermore, I can hold the employees accountable to these metrics!
I will set a target for 95% on time delivery, zero customer complaints, no speeding tickets, and no accidents. Brilliant!
Driver #1 is an ethical, hard working individual. She delivers her loads quickly and efficiently, but always follows the speed limit and is careful to avoid accidents. She records her times accurately and reports all damaged loads and complaints from customers.
Driver #2 is a go-getter. He works hard, but also sees how he will be judged. He speeds when he can get away with it and "settled" with a person he accidentally rear ended by giving the old lady a $100 bill to "fix her bumper". He fudges on his time reports (he is on time most of time anyway, so what's the big deal?) and has been known to even repackage a load to hide damage from the customer. When customers complain to him, he sympathizes with them and tells them that he would get into trouble if they call the office, but that he would be "glad to report the complaint" (he never does).
At the end of the year, which driver will LOOK better to management? Driver #2! Who will management promote for the new supervisor position? Driver #2! BLAMMO! We now have a corrupt supervisor who will continue to manipulate the system promoting more like him (to help make him look good) and getting more promotions himself.
Measure. Rinse. Repeat.
.bmp)
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Interesting. I see the point. What's the solution? How do you base incentives on production without running afoul? Or are you saying that there's a better way to measure than on production?
ReplyDeleteGreat comment! I'll have to expand on this on a near-future article. The short version is what I call the "Data Uncertainty Principle". Data that is used for a predetermined purpose will become inaccurate (corrupt). In other words, "show me how you will measure me, and I'll show you how I will measure up". The key NOT be data driven, but to be KNOWLEDGE driven. Use the data to understand the process better, not to reward or punish.
ReplyDeleteThe other key point here to answer your question is around the concept of "incentives". Salary/pay is one of the poorest forms of incentives. Its makes people believe they are working for the paycheck. (It is true that the paycheck is the basis for why most of us work). However, if you can establish a culture of pride and a solid vision for the organization (in all levels of the company), people will start working for a higher purpose.
An example is a small cabinet shop I work with... they were behind on their orders (they had extra orders), so their employees came in on their day off to get the work done. They were paid for what they did, but management did not have to tell them to come in an extra day and dangle the pay in front of them. They did it because they were connected with the company vision of serving their clients and they felt related to the larger vision. The money was secondary.
More to come soon! Thanks for the comment!
Don
Here is a link to a past article on how extrinsic rewards can be de-motivating. http://galtconsulting.blogspot.com/2009/03/human-other-side-of-accountability.html
ReplyDeleteThanks for reading!