Issue 27 March 2009

The UK economy continues to lie becalmed. Business is being won at lower margins and against more competition. The notion of planning seems ridiculous. We all have a buccaneer strategy now – if you come across a prize grab it!

Meanwhile government funded organisations continue to pour out cash. While one must question the value gained from the spending, it is very welcome at this difficult time.

I cannot help but think in models. The high taxes, licences, grubby infrastructure all act as a brake on business while the financial whizzery acted as a turbocharger boosting the government’s exchequer and allowing them to keep their foot on the accelerator.

Now the wheels have come off the charabanc.

Can we go back to knowing the difference between investment and spending?

Can we move to a situation where government funded organisations are delighted how small they are and how cheap to run?

Can we get away from spending so much government revenue on committees?

Why don’t we give people back a sense of pride in their work instead of throwing money at them?

It really will not do for people to look down on the poor working Joe or Jane and think they will only work for money as they are of the lower orders. I detest that snobbery from all quarters.

Go back in history far enough and you reach a time when groups, tribes were self sufficient: hunter-gatherers eating meat and berries.

As civilisation advanced, goods started to be traded between groups on a barter basis. Most of the goods were still consumed by the people that produced them. They had a desire to create good quality produce, both for their own consumption and for their trade.

The growth of trade and commerce led to the invention of an advanced bartering system – money. Most people still consumed their own produce and traded the surplus. Mistress Goodchild was pleased to sell a few loaves in her village, particularly as everyone knew her loaves were the best.

The Industrial Revolution with its focus on specialising changed Mrs Goodchild’s working life completely. She worked for a baker of course, she like to be involved with bread making. Now though her job involved a small part of the bread making process and some day she didn’t see a loaf at all. Sometimes she heard stories about how well Bramwells’ Bread tasted and sold but she didn’t really feel the bread was hers. Of course nobody knew her part in the success of Bramwells. But the money was good and she knew that every tray of risen yeast she produced was worth a farthing. Bramwells always had more yeast than they could use.

Excuse the story but hasn’t the fiasco with the Banks demonstrated the folly of setting performance targets with bonuses attached? Does anyone still think that was a smart thing to do?

No matter how clever you are at setting up your performance measurement system the people using it will always pervert it.

Do you know why?

When you set up the performance measurement system you are setting the goal, the challenge and the game. We all want to win and we will push the system to extremes. The system becomes the goal and not whatever your organisation is supposed to deliver.

SMART goals and objectives are very nice of course. You can write reams about them, computerise them, get consultants in to upgrade them and report on their inevitable success every month. Everyone is happy.

Performance measurement systems mean you can just let people get on with their jobs and monitor them through the numbers. It saves management time talking to people.

One day someone notices the world has changed and the organisation’s goals are nowhere near the performance measures in place. The world can change very quickly.

Hard and slick bonus systems change the focus of work to getting the bonus. The measurement system will always be out of step with what the organisation really wants today.

People need to be managed. They need to be measured and appraised. They need to be involved with what the organisation does. They need to feel they contribute to and are proud to be part of their employer’s operation.

Using money as a motivator corrupts absolutely!

You must pay people fairly, manage them well and use an appraisal system to develop them.

Motivate them through incorporating their ideas and telling them what is going on. Make them feel part of the operation, make them feel valued.

This is management.

Motivation Matters has an Audit which measures your management of motivation. The Audit will involve two to three hours of your time. The fee carries a 75% subsidy at present (2009) and is £300 + VAT.

Order your Audit by clicking here to get a measure of your current position and a proposal on how you could improve.

You will be astonished at the performance improvement that is possible.

© Motivation Matters 2009