Outcomes and Behaviors
post # 433 — September 17, 2007 — a Managing post
I have just listened to an interesting interview with David Morgan, CEO of Westpac – Australia’s oldest bank and oldest company. (I’m here in Sydney as part of a convention organized by the Australian Institute of Management. )
Among the interesting things he had to say was a description of how Westpac enforces its values. For each person, from the CEO on down to the lowest front-line person, each individual is evaluated according to two dimensions – what they accomplished (their outcomes) and HOW they accomplished them (their behaviors.) The behaviors evaluated include “doing the right thing”, integrity, apolitical behavior, thinking of the best interests of the bank rather than just the individual’s own operating unit, etc. According to David Morgan, the system which feeds directly into a person’s remuneration, is a key mechanism for ensuring that the values are lived.
I’ve heard that GE also has a similar system.
Has anyone out there experienced such sytems (ie lived within an organization which uses this approach)? How effective is it in ensuring compliance wit organizational values?