November 12, 2024

This week, I read about a situation in India during the 1800s. While under colonial rule, the British government reportedly set out to reduce the number of cobras in Delhi.?

I?favor removing cobras (or any snake!) from the city—especially poisonous ones.?

On the surface, the leaders came up with a brilliant idea. They announced that they would pay bounties for dead cobras. What could go wrong?

In the beginning, the cobra population was, predictably, diminishing. Citizens were killing cobras and presenting them to officials to receive their reward. Problem solved, right??

Wrong.

Motivated by the reward, locals started breeding cobras to kill them and collect the bounty. When officials learned of these "cobra farms," they shut down the program—no more rewards for dead cobras.?

They dodged a bullet. Problem solved.

Except...

Now that there was no more incentive to breed and kill cobras, the "farmers" had a bunch of cobras on their hands. No one wanted that, so they promptly released them back into the wild, and shortly, there were more cobras in Delhi than ever before.?

Referred to as "The Cobra Effect," it reminds leaders to consider unintended consequences.?

It's prudent to go beyond the first-order effects of a decision. Consider the following examples:

• High sales quotas with cash rewards often push reps to cut corners—offering unnecessary discounts or closing deals with poor-fit clients just to hit numbers. While it boosts short-term revenue, it leads to customer churn, hurting the brand and costing more in the long run.
• To deepen customer engagement, Wells Fargo incentivized employees to open multiple accounts per customer. Under pressure to meet quotas, employees began creating fake accounts, leading to massive fines, a tarnished reputation, and lost customer trust—a costly outcome from an initially positive intent.
• Some manufacturers reward output alone, motivating employees to rush production. As output increases, so do defects, recalls, and warranty costs, damaging customer satisfaction and ultimately impacting the bottom line.

When working through change, stop to consider three or four moves in advance.?

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The Huddle?is a weekly newsletter that is designed for leaders. Leaders must be learners. There is never a?moment?when leaders arrive. It's a never-ending growth process. I hope this can be a resource that you can use to stay sharp and share with your team.

With that, here are some things I ran across this week.?

Just the Facts -?Growing up, my parents told me all kinds of untrue things.?

• You will catch a cold if you go outside with your hair wet.?
• Sitting too close to the TV will cause you to go blind.?
• If you shave, your beard will grow back darker and thicker.?
• Popping your knuckles will cause arthritis.?

Those were the stories I heard as a kid, but most of us create much more harmful stories in our heads.?This?great article?offers insights on inserting facts—and reality—into some of the damaging stories we recite.?

Winning with Data -?Data analytics has become embedded in nearly every aspect of life. Popularized by?Moneyball—the story of Billy Beane and the budget-conscious Oakland A's who used data to compete against wealthier teams—it showcases how analytics can level the playing field, even in traditionally resource-driven industries.

What would it look like if you were going to "Moneyball" your business? What are key performance indicators that link to success? What three things could you focus on that would genuinely matter??

This article?may prompt some ideas and thoughts about how data can be used to become more effective and efficient.?

Change or Perish -?LinkedIn recently published data on?the changing nature of the workplace. It's worth a look.?

Many of us are reluctant to change—to our peril. Recent college graduates will have more jobs, and about half of the skills we use today will be obsolete in five years.?

It paints a picture of the lifelong learner. If you read?The Huddle, you likely get it. But if we are on the right track, we must keep going. If we sit still, we'll get left behind.?

Break Free?-?I will say it: When I think of Baby Boomers, I think "old." Never mind that I am only Gen X instead of a Boomer through a statistical anomaly. I was born one year?after?the Boomer generation ended.?

I was chit-chatting with a client (he's a millennial) this week, and he asked, "Are you a Baby Boomer?" I smiled and said, "Heavens, no! You think I'm that old?" ?? I didn't tell him I missed it by a year.?

Maybe that conversation was lingering in my mind when I saw?this great Adidas commercial. We may not be what we once were, but we still have something left in the tank!

?A quote for you to leave you with

Have a great week!