We had to figure out a way to allocate employees' personal cell phone usage

The internet is always going out and we rely on smartphones. We have decided that it would help the sales forces if they all had one. I talked to a friend and she said that when she gave her employees smartphones, she had trouble controlling their use. The data charges were high because people were watching videos and shopping. In the end she decided to pay a percentage of the bill. It meant reviewing the bills each month which was time-consuming.

We talked it over and did not want to spend time going through cell phone bills. But, we needed to control cost. What we decided was to review all the bills for the first quarter and then see how much was for private usage and then deduct that percentage from all future bills. It isn’t 100% accurate but it should be adequate to control our costs.

Business is for real men

This is my company and my money and I will do what I want. I don’t need Board members and investors telling me what to do. If they don’t like what I’m doing they can leave. I don’t believe in democracy and voting in business. It slows things down and causes confusion. 

The same applies to anyone who works for me. My staff do what they’re told. They can’t question or challenge me. I know what’s best. I got us to where we are. Working for me is simple. Get the work done on time and under budget. I pay better than other companies if my employees perform well. If they don’t do it right, they get fired.

I don’t believe in training and all that soft development stuff. Business is for real men. It’s war.

The employee incentive program I set up backfired for the business

I know metrics are crucial to measuring and running a business. I got some books on entrepreneurship and business and found a set of common metrics startups and business used to measure their performance. I chose eight and added some more to capture a deeper understanding of particular aspects of my business. I then read about linking people’s performance to the metrics and using this to set targets for individual bonuses.

When I chose metrics, I didn’t pay any attention to their interrelationships. I quickly learned I had made a mistake by ignoring these. One of the key metrics was a 10% increase in new customers. Another was a 10% reduction in the investment in existing customers. I increased staff bonuses for each new customer they got. At the end of the first quarter we saw a 35% increase in new business but we lost 5% of our existing customers and only 15% of existing customers used our services more than once.

At the end of the next quarter the we saw another large increase in new consumers but a even bigger churn for existing customers and less than 10% using our services more than once. I brought this to the team and they saw no problems, they were following the metrics-based incentive program and happy with their bonuses.