3 ms·
It's all just incentives. The downsizing and outsourcing is driven by incentives to remove cost from the balance sheet. If there's no incentive to do so wisel
by roc 14y ago
It's all just incentives.
The downsizing and outsourcing is driven by incentives to remove cost from the balance sheet. If there's no incentive to do so wisely, if there's no disincentive against doing so poorly, people will inevitably make bad 'outsourcing' deals, just to have made them. Quality might take a hit, direct billings might skyrocket, products might have to be scrapped, etc. But if you don't fix the incentives, it will happen over and over.
Similarly, if you incentivize a person to make deals, if they have a stronger incentive to make deals than to make good deals (e.g. if they have no effective disincentive against making bad deals) bad deals will get made.