Tag Archives: compensation. incentive

Catch Every Package

“You see, Reggie, in the beginning, as a manager of a small team, you can take the brunt of the responsibility, because the responsibility is small. As time goes by, if you want to step up to larger responsibility, you will find that strategy will fail you. You, as the manager, can no longer solve all the problems, catch every package that falls off a forklift, fix every little discrepancy that comes roaring at you. If you try to do it all, by yourself, you will fail.

“So, you have managers who know they have to get their teams involved, to get their teams to hold themselves accountable. But they don’t know how. So, some consultant recommends a bonus program to get buy in. And you have seen, first hand, what that does to accountability.”

Reggie took a deep breath. “So, it was okay when things were small and times were good. But now that we are growing, more and more people are trying to game the bonus system.”

“And, lord help you, when times go bad, and they will. A bonus system during bad times is a sure-fire morale killer.”

“I think, the biggest lesson, for me,” Reggie replied, “is that, as things grow bigger and more complicated, I have to learn how to hold my people to account to the performance standards we agreed to. And a bonus system doesn’t substitute for that skill.”