Oddly enough, the last time I wrote about how poisonous individual incentives can be, I used Wells Fargo as one of my examples. Wells Fargo hit the news again this week – this time for fudging the numbers and defrauding some customers in order to get their bonuses.
Individual bonuses drive individual behavior – no matter what the cost (as witnessed by the latest Wells Fargo debacle). What you want is a shared commitment to the success of your business. And your business can’t be successful unless it places equal weight on what is best for employees, shareholders, customers, and the community. Incentives based upon individual achievement drive a wedge between people in your organization. How can your organization perform as a team if you allow incentives to drive wedges between them?