KPI. Why is it bad and unacceptable for normal business

Having been a developer and implementer for more than 25 years, for some time now, I began to observe a tendency for the employer and, in general, management to leave responsibility in the calculation of wages to employees. This applies to any field of activity. In retail - payment to sellers, in wholesale - calculation of earnings for managers, in shipping, in logistics, in housing and communal services, heat and power engineering and further with all stops.



Before, well, with the scoop, everything was extremely simple. Salary and bonus. You get a guaranteed salary, and the bonus depends on your stocks. The decision to revoke the award was made either by the immediate manager or by the party committee. Dot. At the end of the scoop, there were already all sorts of KTUs, but at the moment of the exhaustion of the system it no longer made any sense.



In the years of "barbaric" capitalism, in those very "blessed 90s", if anyone remembers, the wage system did not fundamentally differ from the soviet one. Only bonuses were destroyed as a class, and salary delays were calculated for years.



In the years of “getting up from my knees” ... Well, until about 2005, the awards returned. They were issued about the improvement of the company's condition. With regard to and without any reason.



But then ... A foreign busines came to the country with its incomprehensible KPI. And everything started spinning ...



Suppose the company has two employees. Sasha and Masha. They are managers. Absolutely the same. Sasha is a freebie, his sales are not very good and in general "shit", not a man. Masha is smart. Sales are growing, and so is the customer base. And in general ... Well, clever! And they get the same ... Unfair? Yes! How to solve this problem? In a gloomy scoop, Sasha is deprived of the prize, and Masha is given the 13th in an increased amount. Who decides this? Head of department. It is he who decides who and what to pay / not pay and is responsible for this.



What began to happen in the era of "developed" capitalism. The leader began to look back at Sasha and Masha. How not to offend Sasha, but to elevate Masha? At the same time, making the size of their salaries secret from everyone ... Well, except for themselves. And they themselves will take care of keeping their wages secret. Notice. For a long time, in any team you cannot ask your colleague a question. How much did you get last month?



And a thought appeared in someone's fevered brain. No. Not this way. THOUGHT! And let's load our programmers and they will write an ingenious program that will calculate the salary by ITSELF. And it's in the bag. For any question from an employee - why is it so little for me? (no one asks a LOT of a question) - the answer now follows - The program has calculated. Here's a piece of paper - count it yourself.



And everything started a second time ...



Sasha got used to suffer from garbage. Do nothing, but earn decent money. He's not dumb, just lazy. He received his payroll, which indicated that he had little sales ... In his smart, but lazy brain, an equally brilliant THOUGHT was born (for reference, the company sells the entire range of food products. From pasta to Hennessy and Clicquot). He begins to sell expensive goods to customers, hammering completely into pasta and buckwheat. Thereby increasing sales.



A month later, his sales were on par with the Mashins and he relaxed ... But it was not there. The management saw a drawdown in pasta and buckwheat sales and rebuilt the accrual system. Now the salary was calculated not only from sales, but also from the turnover of goods (hennessy is not bought every day, but buckwheat with pasta is needed every day). I remind you. Masha at that moment just worked well and was freaking out from the difference between monthly income to her budget.



But our Sasha is not so easy to get through. Having quickly figured out the new conditions, he scored on Hennessy and Madame Clicquot and switched to selling buckwheat and pasta, having overstocked his own and other people's clients with the above garbage to the point of impossibility. And Hennessy and Cliquot were stupidly gathering dust in the warehouse.



Management scratched the pumpkin and began to implement a differentiated approach to payroll. For these positions it is paid according to the turnover, for these according to the turnover, for these at the markup, for some positions the PLAN has introduced. Doesn't it look like anything?



Well, Sasha is also not a bastard. Having quickly figured out the "weak" spots in the new system, he focused on selling only those positions that were beneficial only to his wallet.



And Masha continued to freak out from the leaps in her wages.



Sasha's battle with the leadership lasted a long time. In the overwhelming majority of "modern" companies, it is still being conducted and will be conducted forever.



How to deal with this situation?



In a normal company, Sasha will simply be stupidly fired and find more than another employee. In advanced companies, the battle will go on forever. And instead of prosperity, the company will compete with employees in the game - "well, kid each other."



This is all I write for. In the overwhelming number of companies where I worked or participated in the implementation, this, so-called. "Progressive" system of remuneration. And ALL of them have a colossal turnover. And only those who have "tasted" the calculation system and use its holes remain in the field.



What's the matter? It's simple. Employers and management as a whole do not want and cannot look an employee in the eye and say “You work shitty and therefore you will not see a bonus”, and publicly praise another and say “Masha. Here's your year-end award! "



But this is not tolerant! It's so on the shovel. All these boards of honor and public awards.



Therefore, the responsibility for calculating wages is transferred to the faceless program and the programmers who wrote it.



Somehow I'll write an article about "HOUR" as a measure of a programmer's work. This will be a separate story.



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