Extreme Ownership: How U.S. Navy SEALs Lead and Win

nuanced factors that we do calculate for—”
“Really?” I questioned, surprised that they didn’t catch my sarcasm.
“I’m kidding. That is crazy.”
“Crazy? What’s crazy?” she asked defensively.
They were so close to the bonus plan, so emotional and passionate
about it, that they didn’t recognize the vast complexity of it. They didn’t
see their own “fatal fault” in the confusing and elaborate scheme they
had created, one that no one in the team understood.
“That is an extremely complex plan, too complex. I think you really
need to simplify,” I said.
“Well, it is a complex environment. Perhaps if we drew it out for
you, you would understand it,” the chief engineer responded.
“It doesn’t matter if I understand it,” I responded. “What matters is
that they understand it—your production team. And not in some
theoretical way. They need to understand it to a point that they don’t
need to be thinking about it to understand it. It needs to be on the top of
their minds all the time.”
“But we have to make sure we incentivize them in the right
direction,” said the chief engineer.
“Exactly,” echoed the plant manager. “We have got to take the
variables into account so that they are constantly pushed or pulled the
right way.”
They had each very clearly put extensive time and effort into the
bonus plan and now tried desperately to defend their efforts despite its
glaring overly complex deficiency.
“How well is this bonus plan working to incentivize them now?” I
asked. “You just told me they aren’t taking advantage of it, so they
aren’t being effectively incentivized to do anything differently or to