The minute you give people in the management chain targets (particularly if things like performance-related pay or bonuses come into play) you start driving inappropriate behaviour. The management focus changes from running an efficient customer-facing business to achieving personal targets which may actually involve behaviours that are contrary to what would benefit the business the most.
Well said.
Classic example currently happening in Royal Mail. The top management tell a parliamentary committee that they have issued no instructions to prioritise parcels over letters and that they are both given equal priority. Front-line and middle management have targets which give more priority to parcels than letters. Result: at the front line parcels are given priority with letters on the back burner. I hear from the front-line staff out on deliveries that our local Delivery Office has many duties where letters are only taken out a couple of times a week, the rest of the delivery time being used for parcels.



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