The Ethical Conflicts

The Ethical Conflicts Created by MBO Incentive Programs

Is there anyone who really believes that the MBO Incentive programs is an advantage? Everyone I know in the computer industry can site numerous examples of serious mistakes, the implementation, because someone, or someone who had a period of MBO. We have all these conflicts of interest and over again. I've seen (but not the site), one project the costs of a multi-million dollar, because some had too much on the game to fail. It would not be reached. If you rely on cost efficiency, it has not. But he did not earlier ... and much less expensive.

Leave us a story. It's just John MBO possible, and has a portion of the end of the month or quarter, or perhaps even until the end. He knows that other things are more important for businesses, for his opponents, or for one of the many other reasons. He also knows that he lost several thousand United States dollars HIS, if it does not slip, for his MBO delay.

Yes, he should do? He slipped and MBO? For example, it receives its MBO $ 5000 bonus, and ends at the location of other things aside ... cost the company $ 500,000. Does that make this true or false? What would you do?

's, We are more fun. Suppose that only he knows that $ 500,000 be saved. What should he do then? What would you do?

Let's even better. For example, it is not really sure, it could save the company $ 500,000, and would, for a new project does not cost anything, but her own time to resolve. But it would miss its MBO. What then? What would you do if you John?

We've all been in meetings where you can tell someone not refuse, without delay a process that should be delayed because they have an incentive, for now. We all saw the massacre and costs, in which this tactic results. Sometimes it is, we pay the costs of overtime and weekends for rush jobs ... After the Fact.

Have you ever missed an MBO bonus, because you were too busy to help a colleague?

Have you ever missed an MBO bonus, because you were too many weekends free to see a draft MBO not finished ... or longer to resolve production problems? How do you feel?

Exactly.

Therefore I say to all Senior Manager, who continues to blindly follow the policy ... pay your employees what is valued. Independent cores. No potential conflicts of interest. The only thing this motivation, stimulation programs conflict, stress, and in many cases, with millions of dollars in losses by the madness goes on things, because they are part of an MBO agreed, or 6 12 months ago.

One last word. This does not mean that you pay your employees less. It means that more ... ... in wages and let you help your staff, your business grow, as they can, and in most cases, their objective.