This is How to Deal with a Meritocracy at Work!

This week’s video is about the concept of a meritocracy; that is, “You eat what you kill”; No sharing.

Meritocracy is defined…

…in the Cambridge dictionary as a social system, society, or organization in which people get success or power because of their abilities, not because of their money or social position.

Here is a personal example of a meritocracy…

…that I experienced in operation and the negative effects it caused.

I was consulting for a company that owned 5 comparable paper mills. They had a meritocracy based on mill profitability. So, the mill manager that had the highest profit mill got a $50K bonus. The mill manager that had the second highest profit mill got a $40K bonus, and so on.

In the mill I was consulting for one of the supervisors used process improvement tools I had taught him to cut rework costs by $6M dollars per year.

I was ecstatic because this was the largest cost saving I had to date in my consulting career.

I asked the mill manager if I could come with him when he told how he saved $6M per year to the 4 other mill managers.

He looked me right in the eye and said: no you can’t come to the meeting and if you tell any of the other mill managers you are fired.

Well, I didn’t know what to make of it.

Then, I thought about it for a while through the lens of Dr. Deming’s Theory of Management and realized the mill manager was optimizing himself at the expense of the company.

He got the $50K bonus, but the company lost (4 mills)x($6M) =$24M. This is an example of the negative aspects of meritocracy.

That being said, people don’t share process improvements or helpful hints because they are rewarded if they keep it to themselves. He got his $50K, to hell with the company.

Imagine if the paper company had profit sharing.

What do you think would have happened?

There is one positive aspect of meritocracy.

That being, it gives the disadvantaged members of society who are gifted, smart, energetic, ambitious,  and ruthless, opportunities that they would not have gotten in another type of system.

However, cultural bigotry may overcome this advantage.

Use It or Lose It

If you are in a company that has a meritocracy, the most logical action for yourself is to optimize yourself, not the company.

However, the most profitable action for the company is to share your process improvements and secrets, but you may pay a personal cost in the loss of extra money, and perhaps even a social penalty for being a goody two shoes. But, you will hold the moral high ground.

Only you can decide what is best for you.

When to Use It:

When you need to decide how to behave in a meritocracy when you are confronted such a situation.

What Do You Think?

Have you ever been confronted with the above dilemma? If yes, please share your experience in the comments below!

Until next time, behave and as always…Prime Your Pump!
–Howie

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