The Incentive/Behavior Nexus

Steve Kerr uses a General Motors cautionary tale to show us that it isn’t enough to have incentives that appear to reward desired behavior. In this HBR blog post, he notes that:

Although managers’ bonuses are based partly on vehicle-quality improvements, and safety is supposed to be paramount, cost is “everything” at GM, and the company’s atmosphere probably discouraged individuals from raising safety concerns. Earlier this summer, a former GM manager described a workplace in which the mention of any problems was unacceptable.

Kerr’s critical insight is that while GM could point to formal quality incentives, these incentives didn’t have the required impact on its managers’ behavior. The money quote for me is this:

In order to properly align its incentives to support its mission and objectives, a company must determine what managers and employees believe they are being encouraged to do and not do.

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PM Quote of the Day — Vince Lombardi

Practice does not make perfect. Only perfect practice makes perfect.

When I was younger, I never got the point of practice.  Sure, I knew that it would get me in shape and knock of the rust off.  However, I never got the idea that practice would help me perform better under pressure.  Too many times I found myself over-thinking a situation because I hadn’t practiced enough to make it automatic.  I finally started to realize that realistic practice in all sorts of endeavors — in particular, public speaking and presenting — helped to take the edge off along with the rust.

Practice?...  Youre talkin about practice?

Practice?... We're talkin' about practice?

Lombardi’s point also applies to how we test our processes and systems.  Too often I’ve seen customers and consultants assume away difficulties in their desire to save testing time and money.  Even worse, this saving “spasm” usually comes towards the end of the project, just as the testing was about to get serious.

The best testing practice (so to speak) I’ve seen came at a global firm that does dirty and dangerous work.  As you might imagine, that company is very conscious of safety and quality.  That firm called their last round of testing not integration or user acceptance, but “business simulation.”  Business simulation didn’t simply involve folks following a script.  We brought the system, interfaces, and data up like go-live, then encouraged the users to go “do their jobs” and call support if something went wrong.

Sure, such an approach is expensive.  But how much is that peace of mind that comes with a no-holds-barred validation that the system and its support conformed to requirements worth?

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