Field Notes
On the Frontier
This is a living laboratory. It features experiments in human-AI collaboration, creativity, and business management.
MBA Boot Camp: Organizational Culture & Ethics (7.5)
Core Lesson: When Marketing KPIs Turn Toxic
A company can have a beautiful mission statement on the wall, but the culture is defined by who gets promoted and who gets fired.
Ethics in business often fail not because people are inherently evil, but because of Perverse Incentives. Consider the infamous Wells Fargo scandal. The executive team wanted to increase revenue, so they created a marketing/sales KPI: "Eight is Great" (every customer should have 8 different bank accounts/credit cards). They tied employee bonuses and job security directly to this metric.
The pressure was so intense, and the culture so toxic, that employees began secretly opening millions of fake accounts in customers' names without their permission. The executives didn't explicitly tell them to break the law, but the incentive structure guaranteed it.
The MBA Marketing Insight: As a marketing leader, you will design KPIs and commission structures. You must always ask yourself: "If my team is desperate to hit this number, how might they cheat, and how will that destroy our brand trust?"