Eliminate Slogans, Exhortations and Targets

Deming Institute

The best policy may be to avoid incentives altogether and focus instead on creating systems in which intrinsic motivation, cooperation, ethical behavior, trust, creativity, and joy in work can flourish. Distorting the numbers, a form of creative accounting aimed at looking good rather than doing well, is rampant in American business. Point 10 on W.

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

FCLT and McKinsey rely on readily available and machine-readable accounting data to measure myopia. What if concentrated market power of a few companies in an industry has made these companies more profitable than usual? For instance, Home Depot, despite a painful housing market–led recession, retained most of its hourly workers and their benefits in 2008–2009. By spinning their accounting performance, they may postpone having to make hard strategic decisions.

Who Gets a Seat at the Table?

Harvard Business Review

The power of redistributing power came home to Whitehurst (and his fellow Delta alum Jackie Yeaney, head of strategy and marketing at Red Hat) in the course of introducing a formal strategic planning process to the fast-growing company. Yeaney cites three key benefits: First, the process generated "more creativity, accountability, and commitment." "That was a small lesson I learned on the journey.