Hacking HR to Build an Adaptability Advantage

stephen-remedios's picture

Performance Linked Variable Pay - Adaptability Enemy #2

Adaptability is about winning in the long term, surviving all that the VUCA (Volatile, Uncertain, Complex and Ambiguous) world throws at you. The notion of incentivizing managers to meet annual goals encourages quick fixes and a band-aid philosophy rather than stimulating a desire to make adaptations that keep you relevant in the short term and help you flourish in the long term.

 

Most of the incentive systems in organizations today are at loggerheads with the fundamentals of adaptability, which are based on flourishing and surviving in the long term. There are few CEOs who will stand up and say they are focused on the long term.

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keith-gulliver's picture

>> The notion of incentivizing managers to meet annual goals encourages quick fixes and a band-aid philosophy

Hi Stephen - great point. I agree that it is often difficult for people to see a direct connection between what happens day-to-day and the overall strategy.

However, what if the short term actions are directly related to achieving the long term strategy? So, the annual goals are steps on a journey rather than something that happens in isolation. That might suggest a communication problem I guess?

I'd need to think about how this relates to 'organizational adaptability' but I'm sure the same principles can be applied.

KeithG