Imagine there is a company - let's call it Foxie - where the manager pays workers for “activity." What sort of activity? Oh, you know, making calls, filing documents, writing code - the usual.
The manager diligently tracks the amount of calls, the lines of code, and the number of documents filed in a system called ActivityRank.
Whoever does more of these activities rises in the ranks of the company and gets paid more.
At the end of the month the boss comes and asks the manager what got done.
M: “We made 1,540 calls, filed 43,089 docs, and wrote 748,219 lines of code”
B: "But what was the result of all these activities? Did you close any deals? Does the code even work?” How did any of these activities advance our business?”
M: “We didn't close any deals and the code doesn't work. But next month we will double the rewards for ‘activity’ so I'm sure we'll have much better results!”
Would you buy shares in this company? 9 replies
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