What If Reward Plans Had Eight-Word Mission Statements

A recent Harvard Business Review blog post The Eight-Word Mission Statement got me thinking.  It tells the story of Kevin Starr who, as Executive Director of the Mulago Foundation, is responsible for channelling investment dollars to socially minded businesses.  It speaks specifically of his compelling approach to winnowing out less quality "pitches" and investment opportunities (don't tell me there's no parallel to managing compensation investments here).

Starr insists that the companies he funds express their missions in under eight words - and that they follow the format "verb, target, outcome."  No jargon, no corporate gobbledy-gook.  Just focus and clarity.

Examples include " Save endangered species from extinction" and "Improve African children's health."

In addition to the laser-honed mission statement, Starr also insists that any companies receiving investment dollars "measure the right thing" and "measure it well."

What if reward plans had similarly focused mission statements?  What if we insisted, of ourselves and of others designing reward programs, on the focus and clarity of an eight-word-or-less-verb-target-outcome explanation of how those compensation dollars were going to be used?  Along with the basics of a plan for measuring the success of doing just that?

Just thinking out loud.

Image: Courtesy of nortoncreative.com

Comments

[Drew Hawkins]

There's a lot to be said for simplicity.

[Ann Bares]

Thanks for the comment, Drew. Agreed. Although I am ever mindful of the good advice offered by my Compensation Cafe colleage Dan Walter, and looking out for when KISS (Keep it Simple Stupid) becomes WISH (When is Simple Harmful).

http://www.compensationcafe.com/2010/11/when-kiss-becomes-wish-understanding-compensation.html

Still, I like the idea of forcing focus and purpose...

[E James (Jim) Brennan]

Personally find most gobbledy-gook to be weasel-wordy lawyerly bureaucratic cant found most commonly in public institutions rather than in corporations.... unless the statements have been vetted by counsel well indoctrinated in those arts of arcane articulation by over-exposure to those specific toxic sources. Lawyers speak with tongues of lead and can easily obscure the clearest statement.

Most here are too young to remember the PR campaign in TWSJ by the CEO of General Dynamics (I think it was) featuring a series of below-business-card-sized short pithy memorable slogans presented on post-it notes published in the center of an otherwise blank page. It inspired my Brennan's Laws.

[Hugh Elliot]

What gets measured, gets done is an old cliche - but true.

Picking the right things to measure, however, is really, really, hard. When the wrong things are measured, the result is mission failure because too much important stuff has been ignored.

[Sara Kmiecik]

Very interesting post - I just stumbled onto your blog and I love it!

[Ann Bares]

Thank you, Sara, Hugh and Jim.

Agree that a fair share of the opacity we see in corporate speak probably does have its roots in lawyering.

And yes, measurement - like clarity and focus - is a tricky thing. Picking the right thing to measure - or to bring focus and clarity to - is hard. That's probably why we so readily slip into vague language.

Appreciate the comments and insights, all! Sara, so glad you stumbled in!