Tuesday, March 31, 2015

Rewarding Poor Performance

Daft Universal Media and Broadcasting Corporation (DUMB) has two divisions headed by their executive vice presidents, Tom and Jerry.

Tom's division enjoys consistently high levels of customer satisfaction. Jerry's division receives customer complaints nearly every day.

When Tom's division brings out a new or updated product, it's almost always launched on time and within the predicted budget. 

Jerry's product releases are often delayed, sometimes extensively. Delays result in budget overruns and customer frustration.

The customer service department for Tom's division adds value by helping customers to understand the advanced features of the product.

Jerry's division has a customer service department, but they're swamped with phone calls all day long as they try to offer quick fixes to problems with the products.

Tom's division is highly organized. Everyone understands their role and what they need to deliver and by when their part is due.

Jerry's division is less organized. Activity is often frenzied as the team scrambles to appease customers after missed deliverables or faulty products. 

Tom's team works late on occasion, but typically they leave the office on time every day. Some team members participate in the company softball and bowling leagues. Many are dedicated to attending the extra-curricular activities of their children.

Jerry's team spends a lot of nights and weekends in the office or working from home on the phone. They keep an intense 24x7 schedule going throughout most of the year.  


Bonus Implications


When Tom and his team receive their annual bonuses, they are disappointed. Most feel that the bonus amounts dropped significantly since the previous year. To, calls the COO, Mr. Myopic, and requests an impromptu meeting to discuss the compensation figures.

Tom: Hi, Fred. Thanks for meeting with me.

COO: Sure thing, Tom! What can I do for you?

Tom: Well, I have to tell you, Fred. My people aren't happy with their bonus numbers this year. 

COO: I understand that, Tom. You have a great crew. We appreciate the work that they do, very much.

Tom: I thought the company was doing well this year.

COO: We did do well. We gained market share and brought in record revenues.

Tom: Well, then why aren't my people being rewarded?

COO: Well, we want to reward everybody, Tom, but look at this realistically. We need to focus on our top performers. 

Tom: What do you mean by "top performers," Fred? My people meet every delivery on schedule, and we get excellent feedback from the customers.

COO: That's great, Tom. And again, we appreciate everything that you and your crew do. But look at Jerry's people. They work around the clock and on weekends while your crew is out at a bowling tournament. 


Bottom Line

Yes, this grossly unfair, short-sighted bullshit happens in the corporate world. And yes, bullshit is the appropriate word in this context, because no other word to describe the act of giving higher rewards for lower productivity.

Jerry's people aren't working harder than Tom's team. They're working a lot of hours because they're disorganized and undisciplined, and they constantly have to play catch up and put out fires, so to speak.

But as the old saying goes, "the squeaky wheel gets the grease." Hyperactivity can look like extreme performance to upper level management that's too busy to notice and too opaque to care. At the same time, a well-run division full of effective and disciplined people can give the impression of being slackers.

When in doubt, look busy.


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