by Leif Babin
“I don’t have any idea what this means,” the employee said as he held up a piece of paper that was supposed to explain his monthly bonus. “Point eight-four,” he continued. “I have no idea what that number means. What I do know is that my bonus for this month was $423.97. But I have no idea why. Last month I made $279 bucks. Don’t know why. I did the same amount of work; produced about the same amount of units. But for some reason, I got shortchanged last month. What the hell?”
As human beings, we tend to overcomplicate things. Our best intentions create complex solutions. And this is the problem: When people don’t understand, they can’t execute.
A bonus structure that is designed to drive behaviors through incentives can never work if people don’t understand it.
Jocko and I often say we didn’t invent anything new. The K.I.S.S. principle—Keep It Simple, Stupid—has been around for a long time. And yet, in the complex world in which we live, it is extremely difficult to keep things simple because we think we are being simple when we are not. You might have explained the new bonus structure, the new marketing strategy, or the new plan to the team in a simple manner you think they should easily understand. But the test for whether you’ve properly kept it simple is whether or not they get it. If the team doesn’t get it, you need to readjust and simplify things so that everyone on the team understands and can execute.
This week, examine where you can be more effective at keeping things simple. Where can you ask for clarity so you can better understand? How can you simplify things so that everyone on your team can understand? Ask earnest questions of those on your team, or those with whom you interact, so that you can properly evaluate whether or not they understand. Then, make adjustments and keep it simple.