A cautionary tale
Howard Lake | 20 November 2008 | Blogs
It’s no good everybody having the same hymnsheet if some are singing to a different tune.
As we approach the end of the year it’s time to review objectives not only to see if they’ve been met, but to see if they’ve been ‘aligned’.
Last year TW CAT was delighted to have sailed through its assessment for Investors in People. But it came with one proviso – that we had clearly to show the link between our organisational objectives and those of each individual member of the team. Alignment was all. So the new Human Resources Manager’s brief includes developing Personal Development Plans that are linked directly to our organisational objectives.
And it comes with a cautionary tale.
When an American organisation launched in the UK its aim was to recruit sufficient members for it to be number one. For a while, it worked – people joined in their hundreds, even thousands, and soon the goal was in sight.
Then it hit a snag. Called ‘churn’.
People were signing up then leaving as soon as a built-in opt-out could be exercised, only to sign up for a second, third or even fourth time – presumably to enjoy the new member benefits all over again.
So we called a big meeting.
All the best brains were there from both their team and the agency. We spent two days re-writing their organisational objectives and a strategy to meet them, hinged around massively enhanced retention activity.
And it came with a warning. If we didn’t stick to the plan, we’d fail. The organisation would fold and at best be taken over by its major competitor. And that’s exactly what happened. The organisation failed and was taken over by its major competitor.
Because the two principal executives involved had personal objectives that were completely at odds with the organisation’s objectives. They were paid per recruit. So ‘churn’ was good for them. Very good for them.
Every time a member left and returned, they doubled, trebled or even quadrupled the executives’ performance-related bonuses.
So, at a time of the credit crunch, recession, collapse of capitalism… call it what you will, it’s worth reviewing your team’s individual personal objectives to ensure they dovetail with those of the organisation.
Because if they don’t, you may not only fail Investors in People, but the organisation itself could fail. It’s happened before.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.