Unintended Consequences? What do Very Large Bonuses Attract?

It would appear that Very Large Bonuses Attract –  Very Greedy People. Now if experience tells us this is so (and certainly Alfie Kohn’s research showed that one thing that bonuses and other rewards don’t do is to lead to long-term improvement) how should we read the statements that have been made by the top [...]

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It would appear that Very Large Bonuses Attract –  Very Greedy People. Now if experience tells us this is so (and certainly Alfie Kohn’s research showed that one thing that bonuses and other rewards don’t do is to lead to long-term improvement) how should we read the statements that have been made by the top British Institutions that if they don’t pay large bonuses their top earners will go and work for European or American Companies. Put these two ideas together (Greedy People and Go Elsewhere) and a super strategy for British Companies would be to – wait for it – stop paying bonuses. Bonuses might attract top earners but experience (with the credit crunch etc) is telling us that these top earners do not benefit their organisations  IN THE LONG TERM (and therefore do not benefit any of their stakeholders in the long term either).So are there some British Companies out there brave enough to stop paying ‘performance related’ bonuses and to see what happens? The consequences could be very good! Not a loss at all but a gain. All the greedy earners who don’t care a stuff about the customers, will go to the competitors (hooray I hear from all those people who have suffered from all this miss-selling), leaving space for a new type of entrepreneur to take up these jobs within companies – (those with an innerpreneur mindset). Would not it be good for the long-term success of financial institutions for example if all the work was done by employees wanting to do the very best they can to give good service for past, current and future customers. Unfortunately as Kohn showed many years ago, big ‘carrots’ move the focus away from the service. The focus in the bonus culture is “what do I need to do today to make my carrot bigger (and also give me bragging rights to the biggest carrot)”. The focus should be of course be “what do I need to do today to really help my customer?”So should not our politicians be suggesting that bonuses simply STOP in order to make our Institutions better? This then leaves one question. If such an organisation goes on to make increased profit in a ‘no bonus for performance’ model, how do all the employees get to share in this success as an intended consequence? (Answers not on a postcard, but please post your suggestions here) What is a fair way to keep the focus on customer service, and to share in the benefits that accrue from being a truly long-term customer-focussed (as opposed to a bonus-focussed) company?

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Three New Words for the 21st Century

Taking Politics out of the Political – Three New Words for the 21st CenturyIf we are ever to take succeed in taking the Politics out of the Political (Party) System need to ‘invent’ some new words. Two exisiting words that do not help us to move away from the present system are Government and PoliticalGovernment – [...]

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Taking Politics out of the Political – Three New Words for the 21st CenturyIf we are ever to take succeed in taking the Politics out of the Political (Party) System need to ‘invent’ some new words. Two exisiting words that do not help us to move away from the present system are Government and PoliticalGovernment – has within it the term ‘govern’ which contains elements of to rule, to control, to determine etc  (eg to exercise continuous sovereign authority over ; especially to control and direct). Government was something that replaced the single ‘ruler’ (person who rules over). There is very little difference though in the meaning of “to rule” and to “govern” ( both have a sense of control, dominion, or direction over; to dominate by powerful influence; to decide or declare authoritatively or judicially; to decree)If we wanted to apply a different set of conditions by which we run a Country, where the emphasis is not on controlling people but something more enabling we need a new word. So I am going to use the word Enablement as an alternative (model) to Government. An Enablement would have the brief of doing everything possible to allow people and communities to become the best that they can be. The role of any Enablement would be to help remove the things that disable the people from being the best they can be and to become a facilitator for improvement by advocating useful models and discarding the useless models (Political Parties can become so attached to their useless models that this becomes a big part of the problem – I have already mentioned elsewhere that “Target Setting” is a useless model for facilitating real long-term improvement here). An Enablement moves away from the emphasis of the ‘rule of law’ (you should feel bad about yourself if you break the rules) to the ‘rule of helpful behaviours’ (you should feel good about yourself when you behave in ways that are helpful to others). The idea of Goverment is based on “Old Psychology”; Enablement is based on the principles espoused in all the New Psychologies”.The second unhelpful word is ‘political‘. There is no academic agreed meaning of this term but most definitions contain the words ‘power’ and it does seem that it is the lure of power in one form or another that motivates people to use ‘political means’ to achieve things. It is often assumed in the literature that whenever groups interact ‘politics’ is a natural consequence. However I have participated in group interactions similar to what the Physicist Bohm described as ‘dialogue’ and when engaged in such Bohmian Dialogue ‘politics’ is not a natural consequence (and as there is some confusion about the meaning of ‘dialogue’ I am going to introduce what will be a third new word and rename Bohmian dialogue as “multilogue”).So if it is possible to do things (non-politically) in groups that lead to more effective (indeed better) decisions, then we need a new word and I am going to use “Qualitics”. In a future blog I will attempt to define Qualitics in detail but for now let’s just see it as a way groups can work together co-operatively to allow new ideas to emerge that can lead to mutual quality outcomes.So here are three new words for the 21st Century.  Enablements as an alternative to Goverments,  Qualitics as an alternative to Politics with , and multilogue (a la Bohm) as an alternative to debate.

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