Performance Management Rewarding “A” while hoping for “B” Lola Gasabova
The system is skewed • Politics: Political parties want specifics, but reward the one that is best with words • War: Every soldier wants to go home • Medicine: Better type 1 than type 2 • Education: To teach or to research? To pursue knowledge or grades?
The System, cont’d. • Sports: Team or Tyler Bray? • Government: Next year’s budged based on last year’s spending • Consulting: The system rewards ignorance • Business: Are the rewards aligned with the desired behavior?
What We Want vs. What We Reward • Long term growth vs. quarterly earnings • Teamwork vs. individual effort • Setting objectives vs. making the numbers • Downsiding, rightsizing, restructuring vs. adding staff and adding budget and haypoints • Commitment to quality vs. staying on schedule • Surfacing bad news early vs. reporting only the good • Team growth vs. Agreeing with the boss
Causes • Rewarding by objective standards • Seeing is believing: We only reward the visible • Hypocrisy: We say one thing and act upon another • Emphasis on Morality or Equity Rather Than Efficiency: Paying for soldiers vs. Finishing the job until it’s over. Voting just to vote.
The Fix?Alter the reward system • Lack of motivation: Many managers don’t even realize they are rewarding the wrong thing • Explore what is currently being rewarded and refocus • There will always be stand-alones (patriotic soldiers, involved employees, team-oriented players) • Separate checks, pay for the job not the hour, the biggest piece of birthday cake, etc.