Company Celebrations and Indirect Incentives
By now it’s well known that the most reliable way to achieve productive collaboration across an organisation is to ensure that the incentives for each team are aligned. If we all want the same thing, we can all work together.
Often though, the focus is on direct incentives like compensation and promotion. What we talk about less frequently are indirect incentives like praise and recognition. Compensation and promotion are formal rewards handled by HR and so (hopefully) intentionally considered. But indirect incentives like praise and recognition are informal and ad hoc, and so often escape scrutiny. This can produce unintended results.
Think of it like this: what does your company celebrate?
If they celebrate moving business metrics, your product org is more likely to ship hacky, MVP-like solutions that achieve a result but leave product and tech debt and a less-than-ideal user experience
If they celebrate feats of engineering accomplishment, your teams are more likely to spend time on complex technical projects with unclear business value
If they celebrate slick user experiences with wow-factor UI, you’re going to be slower to ship and learn because implementation times are extended
From an org-perspective this is bad enough, but it’s even more problematic for the IC if what their manager celebrates is different from what the company as a whole chooses to recognise. If your company celebrates metric pushing but you’re in the design team which celebrates slick UI, you’re going to find yourself arguing with your product manager and engineers who keep pushing you to have a more stripped down solution.
The onus then is on leadership to be very intentional about what they celebrate. In the same way that we’ve learned to save our praise for achieved results rather than shipped code, when a product manager in your team tells you proudly that their A/B test lead to a substantial increase in conversion, challenge them on how they can get that experience shipped with a delightful user experience, built in a scalable way, that maintains the great conversion impact.