Progress will only be driven by accountability

ASTEEL Company was losing precious power tools in a spate of thefts costing $2 million a year. The chief executive called in his security manager: “Find a solution.”

A week later, the manager proposed: new security – metal detectors, plainclothes investigators roaming the factory, hidden cameras. Total clampdown.

The executive looked at him with dismay: “I told you to solve my $2m theft problem. Your plan is going to cost me yet another $1m. And we’ll have to fire the people we catch and kiss goodbye all the expensive training we’ve invested in them. And have new conflicts with the unions. Your plan is a terrible idea.”

The executive then asked the manager what business they were in. “The steel business, sir.” The executive shook his head: “Wrong. We’re in the money-making business. So instead of spending another $1m I could just fire you. At least I’d save your salary. But I’ll give you a final chance. Why don’t you come up with a plan that will save me money – not cost even more.”

The security manager walked out, shocked, but determined.

A week later, he re-entered the executive’s office: “Sir, I investigated the thefts in detail. From what I can determine the men stealing the tools are not hardened criminals, just ordinary family men. They steal the tools to work on their family homes. And their big problem is it’s difficult to smuggle the tools back into the factory undetected.

“So my proposal is to establish a ‘tool library’ to allow the workers to book the tools for the weekend and return them on Monday.”

The executive smiled: “Well done. You have just solved our $2m problem without spending a cent.”

It’s a great story. It tells of workers being incentivised to become lawful by using a scarce and valuable existing resource, in an accountable way. Boom. Problem solved – by partnerships in perpetual motion.

Last year I heard a repeated call for “a framework of incentives and accountability”. But looking around, a year later, this often seems absent, elusive. And what a shame.

Any administration – private or public – certainly needs rigorous enforcement and compliance. Meticulous project management. Hyper-vigilant performance tracking.

But unless progress is driven by incentives and accountability, in mutuallyreinforcing motion, you’ll only have a fleet of wheelbarrows. The moment you stop pushing, they won’t move forward an inch.

As countries slowly go bankrupt, globally, what we need are innovative problem-solvers, able to identify resources and self-powered solutions, which are sitting smack bang before our eyes. What we need are alchemists… (With a nod to Professor Clifford Shearing. MW)