How it Works

Let's say, you have been hired to do a job. 

Your job is to process papers and move them to the next area.

Intuitively, you know that processing papers would obviously entail that you process them correctly before moving them to Next Area.  You like your job, you are thorough, fast and accurate.

Along comes a great idea from Management.  They want to incent you to do your job better and quicker.

So they devise a plan.

The Compensation Plan for Processors.

"If Mr/Ms Processor processes the paperwork and it averages that 95% of the paperwork arrives to Next Area within 3 days in any given month, that said Processor will recieve an additional bonus compensation payable on the 15th."

Everyone hails the Great Plan. 

About three months into the Great Plan, something seemed to go wrong.  The overall goal in the Great Plan by Management was to actually finalize the ENTIRE transaction sooner, not just Processor time.

But what happened?  You could refer to it as the Great Unspoken Conspiracy Among Processors.

Mr/Ms Processor realized it didn't matter if Paperwork was complete or accurate or ready for Next Area.  And there was no Penalty Clause in the Great Plan for having Paperwork returned to Processor because it was either not complete or accurate.

The days to finalize the transaction actually increased rather than decreased.  And the Processor compensation not only did not suffer, but was rewarded.

Thus began what Big Bad Banking Company called enlightenment.

You Get What You Incent.

No quality standards within the Great Plan resulted in no quality. 

This account is a true story.  The names were changed to protect the innocent.