By September 23, 2006 0 Comments Read More →

An Example of Incentives Harming Customers

Flight Attendants Extort Blanket Sales From Freezing Passengers – Consumerist

In an earlier post’s comments, Luke pointed out the importance of having the RIGHT incentives. As Peter Sholtes writes, people are amazingly good at meeting objectives, at the expense of the overall system (or customers).

The link gives the example of an un-named Asian low-cost airline. They now sell blankets to passengers. Airline management, wanting to maximize revenue, gives incentives and QUOTAS to flight attendants.

So, what happens? The flight attendants have the pilots blast the AC so they can hit their blanket quotas and goals.

There’s an example of an organization that has completely lost sight of the customer. Don’t let the same thing happen in your business.

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Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an book titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

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