Nishith Desai
We are making a new intrepid move on the
wings of our big shift to Networked Leadership1.
We have done away with annual revenue targets
for individuals and practice teams. Instead, we will discuss and
focus on the 'Potential'. We believe that's more motivating and
inspirational. Targets must come from within an individual and not
externally imposed.
'Target' is vintage of two generations-old organization models described as ‘Orange’ or ‘Red’. 'Potential' is more evolved, and thus apt for the current ‘Teal’ or ‘Green’ organization concepts that believe in self responsibility, which is going to be the fulcrum of virtual enterprises.
When we researched further into our intuition,
we surprisingly found, GSK, HSBC, WellsFargo, Barclays, Aviva and
some others have scrapped targets for individuals. All of them suffered
serious reputational issues and even existential risks due to 'targets'.
[See the box inset below]
Apart from a broad objective setting at the
enterprise-level, our lens is now shifting to potential – to the
competencies, methods and efforts that shall realize our aspirations.
Essentially, we are turning to self-driven
exploration, planning, management and development of our highest
potential as a firm, as practices, functions and individuals. We
will work towards this with minds that are free, motivated, purposeful
and rigorous.
Our stance is simple: we will work as a single
team, without divide or silos, with intense passion, with intelligent
individual and collective behavior. We will swim, win and face all
odds together.
This major resetting aims to tackle elemental
questions. How can we unleash the maximum potential that lies within
us – and in this firm? Despite our significant accomplishments,
are the full reserves of creativity and drive in our talent realized?
Are our people fulfilled and happy?
Think about it. Before it happened, would
you have imagined that a blind man, or one with an amputated leg
or a mere 13-year old could climb Mount Everest? Surely not. Yet,
some feisty and determined individuals imagined the unimaginable,
and pulled off these feats. No one forced any target on them. On
the contrary, many may have discouraged them by pointing to the
dangers and the risks. Yet, their self-determination spurred them
to scale the peak which others thought most 'unrealistic'. They
were not motivated by money - they were motivated by purpose!
If we pursue purpose, sooner or later financial
reward follows. There may be no instant gratification but definitely,
long term contentment and fulfilment. The supreme joy and inner
happiness become precious rewards. Even when you fail.
That really is the power and magic of human
potential. Our capacity to achieve is limitless – we can
make the impossible possible.
And every breakthrough achievement has its
roots in a powerful dream or vision with a will to match. The most
motivated attainments were clearly not born out of goal-posts emerging
from past experience, data or trend predicted outcomes.
Why remove a target anyway? Are we not risking
loss of an important discipline that builds the much-needed pressure
for rain-making and ensuring in-flow of work?
Let’s look at it this way. If you have before
you a certain number that is specified as your target to achieve,
all your faculties, energy and endeavors will be tailored to achieve
it at any cost. You are likely to use the most expedient means,
rather than consider long term benefits. You are unlikely to think
blue sky on what can truly be achieved. You will think of this immediate
goal – and get down to producing the short term results. You won’t
ask the question “What more, and how big can we really be?” You’ll
hardly be inclined to innovate, take some risks, or follow instincts
and options that are off the beaten path. Also, you might not put
your client interest before your own interests of performance outcomes,
and consequent reward.
Another compelling reason to get rid of targets
is the dissonance of relative targets. Whether you have a top-down
or bottom-up strategic planning process, at some level, negotiating
and balancing the numbers becomes a vicious loop in itself. Often,
this some win-some lose target allocations lead to angst and disengagement
that lasts the entire year.
I feel convinced that externally imposed
objective targets puts everyone on the backfoot. Experience shows
that it can create unnecessary stress and distort the behavior of
the team, thereby making many manipulative to outright dishonest.
Further, it makes us self-centered, narrow minded and uncooperative.
Hardline targets, more often than not, drives
a person to commit to less than his or her potential. He or she
seeks to lower the target and minimize commitment in order to show
higher achievement.
Hence, targets must come from within individuals
- from the bottom of their hearts, their guts, and their desire
to do something extraordinary. You stretch to reach for the highest
accomplishment when it is your belief and your motivation that fuels
its course. On the contrary, if you are foisted with a pre-determined
objective, devised by others or extraneous factors, you stay limited
to just that objective.
Another failing of the target-driven system
is, people develop a perform-for-incentive-only mindset, and do
not stretch themselves for non-monetary but equally powerful forms
of reward such as visible expertise or personal growth. They often
fail to evolve multi-dimensional competencies in the single-minded
pursuit of numbers. Other critical competencies for organization
success have gone unrecognized for long, and thus diminished the
true engines of growth, value creation and vitality.
So, now that we are shedding targets, how
will we actualize the power of potential?
We believe that once an individual and the
organization understand their potential and opportunity, they will
be self- driven. Without being unduly worried about penalties for
not achieving, their own enterprise will push their boundaries and
achieve the extraordinary. We shall now say, “Do what it takes to
build the best brand, best client experience, best expertise and
best growth architecture in your practice.”
In effect, we are aligning the crucial element
of organization and individual performance with our larger strategic
direction - towards responsible self-management that allows the
individual compass of inner rightness to guide action. We are keeping
the faith in our people’s abiding professional ethic.
So, the deck is cleared for a fresh start.
We trust every professional in charge of a practice, a role, a client
or a project to deep dive, develop, excel and stretch the potential
of it. And, in the manner best fit for creating sustainable value,
advantage and gains.
And the bean count need not worry us.
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