This Focused Performance Weblog is a "business management blog" containing links and commentary related primarily to organizational effectiveness with a "Theory of Constraints" perspective. TOC is noted for its applications in Project Management and Multi-Project Management (Critical Chain) and Operations Management (Drum-Buffer-Rope), as well as in Marketing, Strategic Planning and Change Management (TOC Thinking Processes). If you are on an archive page, current postings are found here.
Monday, April 25, 2005
Tell Me How You'll Measure Me, And I'll Tell You How I'll Behave -- Mark Frauenfelder writes about measures and behaviors at Enron, via a recent documentary film...
"Every year, all employees were rated from 1 (best) to 5 (worst). The more money you made for the company, the better your rating. (Skilling was fond of saying that money was the only thing that motivated people). Skilling mandated that between 10 and 15 percent of the employees had to be rated as 5s. And to get a rating of 5 meant that you were fired. This review process was dubbed 'rank and yank.'
"It's no surprise that this algorithm resulted in a corporate petri dish teeming with sociopaths who were taped in phone conversations laughing at the thought of stealing money from 'grandma millies' who were hit with unafforably high utility bills, and urging on the California wildfires by chanting 'burn baby, burn!.'"
Cause and effect, plain and simple.
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