25 April 2006

Tuesday - Quantum Objectives

One of the most important discoveries of quantum physics, is that it is nigh on impossible to measure particles, because the very act of measuring them - be they electrons or photons - changes them and skews your result. You can never truly know what a particle is doing before you measured it. This makes the act of measuring it pointless.

The same theory could be applied to business. The intention is meant well enough. The big bosses sit around in their ivory towers and I imagine that the discussion will go something like this;

Big boss 1: So, how can we increase our sales? Our shares are looking decidely peaky and I just put an order in on my new olympic sized swimming pool.

Big Boss 2: We need something to incentivise the staff. I have it. Why don't we encourage them to sell more products by - and get this - giving them a bonus when they achieve a pre-defined number of sales!

Big Boss 1: By George. You have it. This way our staff will sell more policies. Sod buying an olympic sized swimming pool. We could buy Lake Windermere!

Big Boss 2: Of course we'd need to measure how many products the staff were selling so that we know who should get the bonuses.

Big Boss 1: Not a problem. Now, Where are my speedos?



And so you get the gist. Now the intention is good. But what happens when staff are targeted on any objective? What will they focus on doing in their job. Something that'll give them a bit extra in their pay packet or something that'll get the job done right?

They'll do what they can to hit their targets. And if this means selling a life insurance policy to a terminally-ill arthritic nun then what do you think is going to happen? And who do you think has to pick up the pieces further down the line when complaints are made because the policy isn't really fit for the purpose for which it was sold.

Of course sometimes the Big Bosses take notice of what the little people are saying:

BB1: Great idea about the sales bonuses. Shame about the nun. Very messy. But why don't we provide a bonus to all staff who don't sell policies to nun's....

and on and on and on it goes - ad infinitum.

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