Can`t walk on water? Yes, you can!
Accenture Drops Performance Reviews !
And people burst into celebrations! I am hoping Accenture will implement and recommend to its clients that BUDGETING and QUOTA setting practice follows the way of PERFORMANCE REVIEWS.
Remember “Corporate Budgeting is Broken” – Lets Fix It – article by Michael Jensen? First written in the 90s, published in HBR in April 2001. Twenty years later – same shoddy quota management practices are not replaced.
Remember Balanced Scorecard and the attempt to use it in performance management?
And the bonus / commission systems that rely on TARGET achievement?
Laminating Management Processes
Budgeting – Performance Management and Incentive Compensation. These three archaic corporate practices prop each other up like a three legged stool. Imagine that they are executed simultaneously and by individuals at will.
eBay of performance
How? We let the executors – of any process – bid for resources they need to execute against some share of corporate outcomes (quantity, revenue, fewer defects, bad loans, profits etc.). We would also facilitate instant feedback, in the form of a score; allowing executors to reconfigure their “bid”, in the cloud, as frequently as they need to keep their own score(s) high.
Does it not sound like eBay? Imagine bidding with multiple goods to put that desirable thing in your cart. e.g. Exchange two books, a tennis racquet and a bowler hat for a used bike. Funny? That is exactly what happens in business processes – daily.
Soon, the solution will be on a cloud near you. The foundation for such a powerful change starts with recognizing that ratio based KPIs are trouble! Ask us why!