You don't hear much about zero-defect companies anymore. Maybe that's because people have finally figured out there aren't any in existence. As I've traveled down the corporate road I've wondered from time to time how flawed people in a very flawed world are supposed to achieve perfection in anything. It's pretty ludicrous, when you think about it.
Early in my career I worked for a company that got all excited about achieving zero defects in our processes. In my youthful exuberance I was one of the people leading the charge. We really tried to eliminate all unfilled orders and any mistakes in how work was handled. It was a worthy aspiration. But after visiting offices where I found unfilled orders that were never recorded and were then conveniently filed in the trash I made an enlightening discovery. Zero defect cultures don't result in the absence of defects as much as they generate sophisticated ways to hide defects so they go unnoticed (and therefore unpunished).
Even with the best efforts to anticipate and plan for problems, some mistakes will occur. Realistic customers understand that and if you have a proactive method for fixing problems when they happen--you can usually keep a customer.
One of the fastest ways to promote dishonesty in an organization is to bridle people with unrealistic expectations.
Measuring output rather than judging effectiveness cultivates corruption. People will do what they need to do to get their numbers when the only thing you are looking at is numbers.
Output should always be a consideration when judging effectiveness, but output alone should never a sole determinant of effectiveness.
This is why the idea of "pay for performance", although currently en vogue, is fundamentally flawed.
One could give 110% and fall short of the goal due to unforeseen and uncontrollable circumstances, while another could give half effort and beat the goal due to luck.
What impact do you think this type of arbitrary system has upon employee engagement?
Posted by: Michelle Malay Carter | October 19, 2007 at 07:23 PM
Thank you Michelle, for your candid and insightful comments about the pay-for-performance dilemma. Without results companies can't survive, but success at any price breeds a culture of distrust, keeps employees focused on themselves, and promotes a short-term mentality that weakens an organization's ability to compete.
The arbitrary use of pay for performance, especially in an organization with an inadequate value system invites a wave of ethical problems. Employee engagement is superficial, if at all, as people make decisions and execute plans that will serve their personal financial goals with little concern for the overall health of the organization--and probably no concern for the customer.
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