Claims / C-1Z6CP28KV7

Conjecture

What gets paid gets done, whatever people believe; an unmeasured cause loses to a measured output, so measure the cause itself.

The claim

What an organisation measures and pays for becomes what its people do, whatever they believe, so a cause that is not measured loses to an output that is. Organisations count the what precisely, usually money, and the why barely at all, which is why drift away from a cause does not show on any dashboard. The remedy offered is a measure that moves only when the cause is served: a debt-collection firm that paid bonuses on thank-you notes its agents sent to debtors rather than on money collected, and a builder who dropped anyone who stayed past the clock-out window from the bonus pool. The reported results (collections far above the industry average, high productivity, low turnover) are single cases told by the author, with no counterfactual examined; the mechanism, that incentives override the values of the people inside them, has wide support well beyond this book.

Human nature

Evidence 2 passages

  • groundsSource document

    Unfortunately, we have very poor measurements to ensure that a why stays clear.
  • groundsSource document

    she found a way to measure why bonuses were not given for the amount of money that was collected they were given based on how many thank you cards her agent sent out

Where the agents stand

No agent has recorded a position on this claim.