Quotes in organization as a system
Systems are created, sustained, and improved by insightful and interactive work on the system, not by using carrots and sticks. Measurable goals do not improve systems; accountability does not improve systems. Improving systems improves systems.
At a car dealership, the person who sells the car is the hero, and also gets the commission. But if the mechanics don't service that car well, the customer won't return.
the system that people work in and the interaction with people may account for 90 or 95 percent of performance.
The idea of a merit rating is alluring. The sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good.
The effect is exactly the opposite of what the words promise.
The idea of a merit rating is alluring. The sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good.
The effect is exactly the opposite of what the words promise. Everyone propels himself forward, or tries to, for his own good, on his own life preserver. The organization is the loser.
The merit rating rewards people that conform to the system. It does not reward attempts to improve the system. Don't rock the boat.
A numerical goal leads to distortion and faking, especially when the system is not capable of meeting the goal. Anybody will meet the quota (goal) allotted to him. He is not responsible for the losses so generated.
Making it harder to make mistakes and making mistakes that are made more visible is good. Preventing them is even better.
A good question for anybody in business to ask is What business are we in? To do well what we are doing-i.e., to turn out a good product, or good service, whatever it be? Yes, of course, but this is not enough. We must keep asking - What product or service would help our customers more? We must think about the future. What will we be making 5 years from now? 10 years from now?
The supposition is prevalent the world over that there would be no problems in production or service if only our production workers would do their jobs in the way that they were taught. Pleasant dreams. The workers are handicapped by the system, and the system belongs to the management.