Page 155 - Performance Leadership

144 • Part III Principles from the Values and Social Dimensions

goals other than corporate objectives. Think of suboptimization, where
we maximize our own targets, even at the expense of the overall strate-
gic objectives. Or, think of gaming, where we start underachieving after
making our targets, or overspending to secure a higher next year’s
budget.
Although this is a very logical thought, organizations typically do not
have the same focus on the negative values as they have on the positive
values. The most obvious reason is that it is politically incorrect to have
a negative focus; understandably management might be concerned that
the negative values become public knowledge. But measurement drives
behavior and behaviors determine the effectiveness of any strategy.
Determining negative values will provide greater insight in defining the
correct and effective performance indicators. The behaviors (positive
and negative) can be predicted once the performance indicators are
implemented, and counteractions (such as incentives or punishment)
can be defined up front. We don’t have to be surprised.

Different Cultures, Different Behaviors
In my first job, as a 22-year-old, I had an interesting experience. I
worked as a consultant in a subsidiary of an American firm. The local
management, inspired by corporate practices, decided to implement a
monthly incentive program. In a few performance categories, among
which was “most billable hours,” the best-scoring consultants would
get a small bonus (enough for a nice evening out for two). The group
of consultants rejected the program, as billability was considered highly
dependent on the results of the sales force and only marginally depend-
ent on the achievements of the consultants. Management insisted, and
the group resisted. The group stated it would collectively put the bonus
in a pool to then be equally distributed or awarded in a lottery. The
incentive program was never put in place. It was my first lesson on how
simple measurement and reward systems have a cultural context.
Values are defined as an organization’s principal behavior on a high
level; culture describes an organization’s practical behavior that can be
observed in similar situations over and over again. In the company I
worked for, “fairness” and “equality” were values; “sharing success” was
the cultural outcome. Applying generic management theories often