“In my current position, I have met my profit target for 8 quarters in a row. I am 110% confident that I can meet similar stretch goals for you, if given the opportunity.” This was Greg Sierra’s boast when he interviewed to be a profit center head at a large corporation. Greg had a history of turning in very good results for two to three years, and then switching jobs. As evidence of his exemplary (modestly stated, of course) managerial talent, Greg always likes to point out that his units’ performance unfailingly went down after he quit.

Required:
a. What might be an alternate reason for the lower performance after Greg leaves a profit center he supervises?
b. What kinds of performance measures could you add to profit goals to ensure that Greg also pays appropriate attention to long-term goals?