may lead to fraud. Fear of failure (to meet the goals
specified from above) is often the underlying cause.
This was evident at both Enron and WorldCom. When
senior executives and operating managers commit to
overly aggressive targets, they may fudge the numbers
to meet them. The fixed performance contract is a deadly
virus. It can lay dormant for years until an aggressive
“management by the numbers” leader comes along and
activates it. It is a dismal way to manage a business.