Wells Fargo has had to fire over 5,000 employees as it was found that they were making fake accounts on behalf of customers—these terminations took place over the course of a few years, so this has been going on for some time. More recently, however, the bank ended their program of incentives to cross-sell accounts to customers.
To recap: a company started to measure how often its employees were able to cross-sell accounts, applied incentives to that measure, and the employees dialed up their cross-sells to the point of actual fraud.
This is unsurprising, you get exactly what you measure—no more, no less.
I’ve seen this often in software delivery: companies claim to value quality, but what do they measure? Lines of code, features completed, project milestones, deadlines. What do you get in return for that measurement? You get tremendous amounts of low-quality work delivered on time and within budget—then you spend extraordinary amounts of time and money fixing all of the terrible, broken software you’ve created.
A past employer expressed tremendous amounts of frustration with exactly that problem when they brought me onto the team; their projects would be completed reliably on time or very close, but would often be delivered 100% or more late (and with tremendously reduced profit) because of the enormity of the repair tasks.
If you want to receive quality, that is what you have to measure. There are numerous ways to do so; incentivizing first-time delivery quality with zero-defect feature bonuses, tracking defect counts against feature complexity for a team, and turning off incentives for milestones in favor of incentives for active status communication are just a few that I have used with great success.
In the aforementioned company, I lobbied for and eventually succeeded in eliminating milestone measurement on the delivery side of the organization in favor of quality metrics similar to those above, and both profit and timeliness skyrocketed…but what rose the most was customer satisfaction. Suddenly, clients enjoyed our process and software, which was really my goal all along.
Remember that you will always get what you measure, but you will get the letter of it, not the spirit of it. Act accordingly.