Do incentive-based KPIs work? Learn from a 2 year old
It is funny how normal day life can give you insight and guidance into incentive-based Key Performance Indicators (KPIs).
My 2 year old is slowly learning to use the toilet instead of her diapers. As parents we thought it was a good idea to give her an incentive: every time she uses the toilet she gets to choose a colorful sticker. She has to earn 12 stickers to earn a special gift (going to the zoo).
I must say it really gives her an incentive to use the toilet, many times, even if she does not really have to go. The mere attraction of the possibility of getting a sticker makes her just try — you never know, it might succeed, even if she just went. And from her perspective a few drops already count. As you can imagine, it drives us nuts.
Now you could argue that the incentive is wrong; she should loose a sticker every time she goes to the toilet without actually using it. But somehow, even if she would understand as a 2 year old, I fear that she could decide to stick with the stickers she already received, weighing in that the chance of loosing one is too big.
So what’s the deeper thought. I guess that you need to clearly think about the consequences of incentive-based KPIs; it could have the opposite effect, or unexpected negative consequences. You’d better be prepared.
SR.MANAGER PURCHASE at INDIA GLYCOLS LIMITED
Quality Expert at Muller die Lila Logistik
That is why one should use antagonistic KPI’s balance effects on overall process or establish upper limit. I prefer to balance one KPI by using reverse one.
Managing Architect at Dimension Data
if she sticks with what she has got, you should take away a sticker every day until she moves forward again – innovation should form part of an incentive based KPI agreement. do you also take away a sticker when she goes in her diaper? incentive KPI’s are a great call, but they must be balanced between pain and gain.
Business Analyst at RailCorp
You soon learn that what works for one child does not necessarily work for the next. We have 4 of them. Same with people at work. You need to make sure you know what drives the individual and tailor the solution.
Process Manager at BT
I can relate to the last comment. I also have four children and toilet training wasn’t any trouble with any of them. I didn’t find the need for any KPI or incentive, encouragement and praise seemed to be the best solution. Intrinsic motivation is the best and you don’t always have to measure every detail but only the end result.
commercial at nicast
Nice analogy demonstrating that even at 2yrs old a KPI will drive effort and performance when there is a clear line of sight between activity and reward. lesson learned about “line of sight”
avp hrd &od at BANK
MICHAEL B has alluded to it. wish we had toddlers working in our organisations who will be content with colorful stickers. individuals havw varied and disparate needs, aspirations, expectations( simply not conditioned to toilet use) and motivational thresholds . the analogy is too primitive and hardly relevant to todays organisations viz a viz the complexities of workforce
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It would be better,if we fix that not more then 5-6 stickers will be given in a day.