Re:Stop Paying Executives for Performance (2016)
by sokoloff on Sunday January 15, 2017 @12:25PM
(#13405065)
Find a metric that is hard to game and aggregates the results you're interested in driving over a relevant period of time.
"Widgets that sold and had no returns logged" is better than "Widgets that passed QC" is better than "Widgets completed" is better than "Widgets started" for a widget assembly line worker.
Perhaps even better is "long-term profit and sustainability of Widgets, Inc" but that is harder to tie back to the individual widget maker. (A possible metric for the last is "arithmetic average of the share price of Widgets, Inc measured between 9 and 15 years from now", but that's hard to use to motivate someone to make more/better widgets this week.)
"Widgets that sold and had no returns logged" is better than "Widgets that passed QC" is better than "Widgets completed" is better than "Widgets started" for a widget assembly line worker.
Perhaps even better is "long-term profit and sustainability of Widgets, Inc" but that is harder to tie back to the individual widget maker. (A possible metric for the last is "arithmetic average of the share price of Widgets, Inc measured between 9 and 15 years from now", but that's hard to use to motivate someone to make more/better widgets this week.)