Staff Incentive Quotes

Just like married couples, companies can fall into the dissonance trap if they think they’re sending employees one message but those employees hear something very different. CEOs who think their firms are great places to work often are stunned when I tell them their staffs find these companies stifling, unrewarding, unfriendly, or just plain awful. This is a bad situation because it’s an open loop: There’s no feedback to correct the dissonance, so it grows worse over time. The CEO typically grows bitter, decides that “these people are underproductive whiners,” and implements punitive changes that make matters worse. The employees, in turn, grow even more annoyed or angry. Left uncorrected, this can lead to the worst-case scenario of a CEO giving people the least possible incentive to keep them working and those people doing the least they can to just hold onto their jobs, a situation that can bring a company to its knees.

In any case, it is not as if the ‘light’ inspection is in any sense preferable for staff than the heavy one. The inspectors are in the college for the same amount of time as they were under the old system. The fact that there are fewer of them does nothing to alleviate the stress of the inspection, which has far more to do with the extra bureaucratic window-dressing one has to do in anticipation of a possible observation than it has to do with any actual observation itself. The inspection, that is to say, corresponds precisely to Foucault’s account of the virtual nature of surveillance in Discipline And Punish. Foucault famously observes there that there is no need for the place of surveillance to actually be occupied. The effect of not knowing whether you will be observed or not produces an introjection of the surveillance apparatus. You constantly act as if you are always about to be observed. Yet, in the case of school and university inspections, what you will be graded on is not primarily your abilities as a teacher so much as your diligence as a bureaucrat. There are other bizarre effects. Since OFSTED is now observing the college’s self-assessment systems, there is an implicit incentive for the college to grade itself and its teaching lower than it actually deserves. The result is a kind of postmodern capitalist version of Maoist confessionalism, in which workers are required to engage in constant symbolic self-denigration. At one point, when our line manager was extolling the virtues of the new, light inspection system, he told us that the problem with our departmental log-books was that they were not sufficiently self-critical. But don’t worry, he urged, any self-criticisms we make are purely symbolic, and will never be acted upon; as if performing self-flagellation as part of a purely formal exercise in cynical bureaucratic compliance were any less demoralizing.

FOCUSING TOO MUCH ON THE NUMBERS In the second example, I managed the team to a set of numbers that did not fully capture what I wanted. I wanted a great product that customers would love with high quality and on time—in that order. Unfortunately, the metrics that I set did not capture those priorities. At a basic level, metrics are incentives. By measuring quality, features, and schedule and discussing them at every staff meeting, my people focused intensely on those metrics to the exclusion of other goals. The metrics did not describe the real goals and I distracted the team as a result. Interestingly, I see this same problem play out in many consumer Internet startups. I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product. It’s important to supplement a great product vision with a strong discipline around the metrics, but if you substitute metrics for product vision, you will not get what you want.

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I managed the team to a set of numbers that did not fully capture what I wanted. I wanted a great product that customers would love with high quality and on time—in that order. Unfortunately, the metrics that I set did not capture those priorities. At a basic level, metrics are incentives. By measuring quality, features, and schedule and discussing them at every staff meeting, my people focused intensely on those metrics to the exclusion of other goals. The metrics did not describe the real goals and I distracted the team as a result.

shifting demand patterns that have so often provoked or worsened economic cycles and crises in capitalism. Inventors and innovators in a WSDE-based economic system would, like their counterparts in capitalist systems, face problems to solve and incentives to realize the production of new goods or services. Funds would have to be secured (from public agencies provided with surplus allocations from existing WSDEs and/or from private sources that could include individuals and other WSDEs) when the inventors and innovators did not have sufficient funds of their own. Workers would have to be gathered who would leave existing employments to help start and staff the new WSDE. Similarly, incentives would have to be established, such as tax considerations, temporarily higher personal incomes for the worker/directors in successful new WSDEs, social recognition and rewards, and so on. Interestingly, the WSDE-based system would not need a patent system (nor suffer its constraint on other people’s use of new inventions), since it could provide alternative incentives for innovation just as it

The nature of project work is that whatever it is you’re about to build, the early conceptual phases are crucial. But this kind of conceptual work can’t be done with a crowd of people. A staff of no more than six might make perfect sense while the first-cut design decisions are made. Burdening the project with an extra fifty people at this stage will only make the work go slower. Or worse: With that many people on your budget, your every incentive as manager is to find something (anything!) for them to do. All your available choices here are bad. Anything you assign that many people to do locks you into conceptual decisions that haven’t yet been thought out. You’re forced to partition the whole—this kind of partitioning is the essence of design—along lines that are dictated by personnel-loading considerations rather than design considerations. The result is sure to be a mediocre or poor design, something that will encumber the project from this point on.