Fri, 16 September 2016
In the 3rd episode of 10 Minutes with Dr. Deming, Tripp Babbitt discusses the allegations and fallout surrounding Wells Fargo Bank and their incentive compensation programs. These systems of rewards, incentives and bonuses have plagued organizations for years, yet we continue to use these concepts and do virtually nothing as they wreak havoc on industry, government and education.
Tripp shares how Wells Fargo had a goal focused on profit and developed and used a system of rewards, bonuses and incentives to achieve that goal; leading to fraudulent sales practices and ultimately 5,300 employees being fired for trying to achieve their otherwise unattainable goals.
Listen as Tripp uses Dr. Deming’s concepts to look at the situation through a different lens where he describes the “forces of destruction” that lead to broken systems and the reliance on extrinsic motivators while squeezing out our intrinsic motivation . Rather than relying on these negative forces, Dr. Deming explains, a system should be put in place where everyone comes out ahead, with an Aim for everyone to win. A win-win for everybody. Enjoy!
If you have comments or suggestions for future 10 Minutes with Dr. Deming topics, please contact Tripp at email@example.com or through Twitter @demingpodcast.