You need to rethink the incentives you set

๐Ÿ’Œ 231 words โŒ› 1 minute

Leading with goals and incentives is quite normal today. You reach goal X and you get reward Y. But you need to become aware of which behavior you promote or penalize. Think about your actual goal before you reward people for reaching non-sense numbers. Make sure it generates actual value.

Why it matters: Reaching goals feels good. It feels like progress. At the same time, goals often donโ€˜t directly reflect the value you are looking for. Even worse. Employees think more about the isolated goal than your product and customers.

Dig deeper:

  • Conscious or not, people will exploit your goals. They will find ways to reach their KPIs without generating the intended value.

  • The wrong incentives create a lone wolf culture, rather than promoting teamwork. Avoid isolated goals for single individuals. Focus on team efforts.

  • While competition can be motivating, it can also lead to sabotage:

    • Employees could solely focus on their goals and ignore broader initiatives.

    • This toxic behavior can erode trust and morale in the team.

  • Are the goals up to date?

    • Review and update goals to ensure they align with current business objectives.

    • Adapt to changing market conditions and company strategies.

  • Journey, not destination: Make sure your incentives also reward behavior change and learning. Not just a result.

If you want to build a culture focused on your customers rather than reaching random goals, let's talk.

โ€” Daniel