These days, Iâm wary of seemingly simple incentive rules that promise amazing results. They are rarely simple, and often leave collateral damage. Usually, a better option is to have a frank discussion about what we should value and why. Why should we care about exploring more designs early on? Why should we aim to speed up engineering velocity? Once people understand and buy into those values, they can make the best decisions on how to apply them.
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When you value something deeply, donât shy away from talking about it. Instead, embrace telling people why itâs important to you. Assume that for the message to stick, it should be heard ten different times and said in ten different ways. The more you can enlist others to help spread your message, the more likely it is to have an impact.
The way to identify and resolve incentive traps is to regularly reflect on what the difference is between your stated values and how people are actually behaving on your team. Whatâs leading them to make certain decisions? If youâre not sure, ask. Why did you choose to build these five features instead of the one that the customers are asking for? If you learn the issue is primarily structural, make changes to your incentives so that the right behaviors are rewarded.
I went to our boardâs compensation committee and explained the dilemma. When you innovate, everything needs to change, not just the way you make or deliver a product. Many of the practices and structures within the company need to adapt, too, including, in this case, how the board rewards our executives. I proposed a radical ideaâ essentially, that I would determine compensation, based on how much they contributed to this new strategy, even though, without easily measured financial results, this was going to be far more subjective than our typical compensation practices.
Do yourself the favor of getting lots of options, then culling the list down to a short and manageable size (five max); then make the best choice that you can, given the time and resources available to you, get on with it, and build your way forward. Note that if youâre doing this with prototype iteration, you donât have too much at stake, and you will be able to adjust as you go, before you really reach a significant investment. And once you make a choiceâthen embrace your choice and go with it. When the questions that lead to agonizing creep into your head, evict the thoughts, and direct your energy into living well the decisions youâve made. Pay attention and learn as you go, of course, but donât get caught with your eyes fixated on the rearview mirror of decision regret.
This letting-go step relies primarily on personal discipline. Keep your reframed understanding of decision making handy, and be sure to win the internal argument with yourself when youâre tempted to rehash and ruminate. Put in place the support you need to stick with itâfind a life design collaborator or team to help remind you why you made the choice or choices you did; make a journal entry about your decision, and reread it when you get confused. Find what works to enable yourself to enjoy your choices fully.
It is not easy to hold this kind of quality leadership for three big reasons. First, no one will believe you have the longest-lasting trucks until they have already lasted a long time on the road. Itâs a reputation that takes a while to earn and can be lost quickly. Second, designing a very high-quality piece of machinery is not a textbook problem. Designers learn from other designers over time, and the company accumulates these nuggets of wisdom by providing a good, stable place to work for talented engineers. Third, it is usually quite difficult to convince buyers to pay an up-front premium for future savings, even if the numbers are clear. People tend to be more myopic than economic theory would suggest.