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by jeremyjh 238 days ago
This just pushes the responsibility for outcomes farther from the people doing the work. The CEO is going to answer to the board based on outcomes. If the sales leader knows they can't penetrate a market or engineering leader knows the feature will flop and they don't change the company's strategy then they are failing.
1 comments

That’s… a strange dismissal of my point, and not based in reality. And despite yourself, you’re agreeing with me. The smart sales leader will find creative ways to pivot. And even if they don’t hit their numbers for factors outside their control, if they played their hand well, that’s what you reward.

If you’re solely graded on outcomes, you end up with very bizarre behavior as people game the system.

See: surgeons avoiding high risk patients because they don’t want to ding their outcome scores. And see Wells Fargo employees fraudulently creating accounts for people to boost their numbers.

You want to have an org that encourages (calculated) risk taking and rewards those who persevere though difficult situations.