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
Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.


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