The result is irrelevant... as a measure for decision and execution quality
In a new podcast, Zeger Degraeve, Sheikh Mohammed bin Rashid Al Maktoum Professor of Innovation; discusses why the practice of managing to results leads to crisis and how people should be rewarded for the decisions they make, not the results they obtain
Zeger starts the podcast off by explaining how decisions and results are two very different things. "The quality of a result is not an indicator of the decision made and the result is irrelevant as a measure for decision and execution quality."
It is often misconstrued as to what the individual decision maker is accountable for if not accountable for results. Zeger goes on to explain why, the responsibility of decision and execution quality - "things we can control" - lies with the individual.
Zeger touches on how compensation systems should be restructured and why managers should be rewarded for their long term effectiveness not measured by their short term results.
In addition to executive compensation, Zeger discusses possible solutions to ongoing questions such as; how can decision making be measured if not by results and what do companies have to do in order to achieve good results?
Zeger concludes the podcast by discussing the management of risk associated with individual projects and how becoming knowledgeable about decision making processes - will produce better business leaders