Asked if the study of creation could provide any insights as to the nature of its Creator, the great biologist J. B. S. Haldane replied that clearly the Creator has ” … an inordinate fondness for beetles.”

Coleopterans account for about a quarter of all animal species on this earth. Mammals, in contrast, contribute about a quarter of a percent of all species. Don’t feel bad. By other measures I’m sure we human beings are more important.

Humans dominate all other species (except, perhaps, for some viruses and bacteria, along with ants, spiders and the aforementioned beetles) because of our ability to think: To make tools, to plan, to transfer skills and knowledge to our progeny.

That’s how humans dominate other species. Individual humans dominate other humans through their social skills. These two facts explain most of human history: We win through intelligence. I win through what Daniel Goleman calls “emotional intelligence.”

This is why most businesses fail to learn from their successes, as explained in detail in the last several editions of Keep the Joint Running: Learning from success is good for the company but not necessarily for those who run the company.

Emotional intelligence is a vital quality for effective leaders. The problem arises when they decide to value emotional intelligence more than tangible skills, knowledge and logical decision-making in the organizations they lead. It’s how organizations start down the sad path to what my business partner calls “mediocracy.”

It needn’t be so. As evidence I submit this tale from a regular KJR correspondent:

I recently finished a six month job rotation as manager of our Service Desk (formerly “Helpless Desk” according to our users).

The prior manager measured performance on a strict count of tickets handled, weighted by priority. Since we can’t reward by dollars (union shop), we use perks like window cubes, preferred schedules, and first choice on vacations as incentives.

The top performer for the 13 quarters prior to my arrival was an individual who I really didn’t see doing anything. The quarter ended and he was again the top man. I decided to find his secret to success in an effort to raise everyone else’s game. So I started analyzing his tickets.

His method was simple. Every single call he took was labeled Critical. If he took a ticket originally handled by someone else, he upgraded it. If he got repeat calls from the same user with the same problem, each was a new ticket. He closed out every ticket within two hours, regardless of whether the problem was handled or not. We measured volume, so he delivered volume.

However, when he trained someone new, he always preached completion, follow-up, and thorough documentation — in short, how the job really should be done. He gamed the metric both ways (boost my numbers, lower your numbers). And we rewarded him for it.

I changed the rules and the measures. Those answering the phones started with the question “Is this a problem we have worked on before?” and reopened the old ticket instead of writing a new one. They wrote all tickets and graded their priority. They assigned the tickets and those handling them did not have authority to change the priority. I measured who got things fixed “once and for all” rather than incident volume.

Lo and behold, the top performer fell immediately into the bottom 10%. In the next quarterly survey of our effectiveness, users rated service 20% higher than ever previously. I was offered the position permanently (and declined it).

Our “top” performer left due to “absenteeism problems.”

I left my successor a plaque that read “Be careful what you measure. You’ll get it.” (It’s from one of your columns on metrics — credit where it’s due.)

My successor went even further. He rewards the people who identify patterns of problems and solve them, for individual recognition. He did away with the perk system in preference to a team system. His metrics are number of tickets, number of reopens, time from receipt of call to start of work, and customer satisfaction.

He also tracks the number of calls received to prevent gaming the first number by not writing tickets. The desk is way up in satisfaction, and he definitely is on the right track.

Oh, and he still uses the manual written by the former top performer to train people.

If it makes you feel better, compensation has improved.

I’m not talking about the amount. I’m talking about how it’s administered.

Not that long ago, many companies gave men raises when they got married. Women’s careers stalled under the same circumstances.

The logic was impeccable: Married men needed more money to support their households. Married women, on the other hand, no longer needed as much. After all, they had husbands to support them.

The world does sometimes get better. Achieving perfection is another matter. If you expect it, you’re sure to be disappointed, especially where compensation is concerned.

This, and other thoughts, occurred to me as I read my correspondence from last week’s column on fair compensation (“Poor Joe,” Keep the Joint Running, 10/22/2007). What other thoughts? Glad you asked.

Why not base pay on value? Most employees think their pay is and should be based on the value they contribute.

It’s a reasonable thought. That value is why companies employ people in the first place (for more, see “The 70% solution,IS Survival Guide, InfoWorld, 3/4/1996).

Here’s the problem: Whenever a company bases compensation on anything other than what the market will bear, it faces one of two situations. Either it can get the same value for less by replacing its employees with less expensive alternatives, or its employees will leave for better paying employers.

Basing pay on value is inherently unstable.

There’s another problem with value-based pay: Measuring the value. When you’re dealing with the sales force it’s easy. They sell. What they sell has a known margin. Do the math. No problem.

For just about anyone else, the connection between their work and the value they deliver can’t be turned into a number that will make much sense. The value is there. Measuring it unambiguously isn’t a problem any of us are likely to solve any time soon.

Can you really give a $75,000 employee a $20,000 annual bonus? No, you probably can’t. The problem is that every year you employ this computation, you’re assuming the employee will stay another ten years. Some employees will; many won’t. If that sort of longevity is typical in your company, annual bonuses this large might not be a bad idea. If it isn’t, don’t fret.

First of all, unless your company is a truly awful place to work, the average employee turnover in IT is unlikely to exceed 20%, which means the average duration of employment is at least five years. That still allows more than $10,000, which isn’t bad at all.

There’s another alternative, too, at least in publicly held or soon-to-be publicly held companies: stock options, vested over ten years. It’s true that the accounting for stock options has become controversial. The basic idea remains sound. Vesting options over ten years eliminates the risk of basing compensation on the assumption of ten years while getting much less, and in addition creates a financial incentive for employees to stay with the company.

In fact, you can give a smaller option grant and vest it over five years, especially if your company has a reasonable track record of stock price increases, because it’s the employee’s expectation of value that matters most.

Not a bad set of outcomes.

Pay for performance? Great. One question: How do you measure performance? This is the magic question, whether you recognize performance with variable compensation or prefer to use simple raises.

As a manager you have to have a way to assess … not measure, assess … how well employees are doing their jobs. The distinction between measurement and assessment is vital.

When you measure — when you establish clear, objective criteria regarding how well each employee accomplished the goals, objectives and responsibilities you’ve established — you face a hazard: You get what you measure. That means anything you mis-measure employees will get wrong, when you measure the wrong things you’ll get the wrong results, and anything you don’t measure you won’t get. Especially, what you don’t measure you won’t get.

Think of what you ask employees to do, all the time, in addition to their formal responsibilities: Participate in ad hoc committees; take the initiative when something needs doing that you don’t know about; and help each other out when one gets stuck and another knows the solution; to name just three typical examples.

If you assess employee performance, these will count in their favor. If, instead, you measure it, when you ask you’ll get a predictable, and entirely deserved response:

“Why would I want to do that?”