The best way to fill your organisation with liars…
Is to set up an incentive scheme. I guarantee at least two deceptions:
The first deceit
The lying starts with the debate about the target:
- What service level can you meet?
- What can you shave off your budget?
- How much extra can you sell?
10%? 20%? 30%?
If someone has a bonus riding on a target, it is in their interest to lowball the number, to argue down the prospect and generally lie through their teeth. That way the incentive will be as easy as possible to achieve.
The second deceit
Next comes the debate about performance.
Now it is in that person’s interests to talk up their performance. To massage the figures, to blame their co-workers and short change their customers. They should do anything they can get away with (lie – cheat – deceive) to hit the target.
The bad idea that refuses to die
There is plenty of evidence that money doesn’t motivate…
And examples of misplaced incentives
Targets and incentives do nothing for organisational performance or customer satisfaction.
Yet we are still hell-bent on using them to manage our businesses.
A side bet
I realise I am a little strident in my views. So I’d like to put my money where my mouth is. Watch the video below. I have absolutely no proof that it has anything to do with a management bonus scheme.
But I’m ready to bet my mortgage on it.
If you’d like to take my money then just drop me a note in the comments box below.
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Read another opinion
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James,
I’m not a betting man and even if I were I wouldn’t take your bet as I believe that targets are probably, like in the many other scandals that we have seen in recent years, responsible for much of what has happened.
Adrian