Bonum Certa Men Certa

At the EPO Money -- Not Quality -- is King

EPO€ FLIERNo. 50

The EPO-FLIER wants to provide staff with uncensored, independent information at times of social conflict

Part 2: Financiers are ruining quality

 

“’I know this would take a lot of planning, but the alternative of rushing the build is far riskier,’ the manager wrote. […] However, Boeing did not slow its rate of production.”1

About 20 years ago, journalist Jerry Useem wrote that “Boeing has always been less a business than an association of engineers devoted to building amazing flying machines.2 In 2015, Boeing nominated a financier as its CEO. Unfortunately, financiers often focus on short-term profits and tend to loot the corporations they run. The Boeing engineers lost power to the financier, who increased prices, laid off workers, reduced quality and spent cash buying back stock - while the company lost its ability to make safe airplanes.

There are many parallels between Boeing and the EPO. A former colleague observed a few years ago that scientists and engineers are always more efficiently led by scientists and engineers3. But the EPO, a public administration whose priorities were once set by the European Patent Convention and implemented by qualified and motivated engineers and scientists, is now in the thrall of bean counters.

The Battistelli administration introduced an anti-career system which generated enormous regular surpluses by reducing salaries and other staff benefits. But these measures ruined the quality of our services. The surpluses have been transferred to the dubious EPOTIF4 investment fund. President Campinos presented a fudged and heavily biased Financial Study to justify the implementation of further cuts in staff benefits.

Similar to the executive team at Boeing, our top management may be quite skilled at generating cash but they seem to understand little about running a public administration. In the past, our activities were focused on delivering high quality search reports and valid patents, now all that matters is increasing output. Production numbers count, not quality.

“’You have a systemic problem in your company. You’re driving profit. You’re not driving quality [...]’” the California Democrat John Garamendi told the Boeing chief executive1.

The EPO is not a company and its budgetary responsibility is not that of a company. Its mission is not to pile up mountains of cash but to serve the public. But the Administrative Council rewards top managers for EPO productivity increases with higher bonuses. The new career system translates these false incentives for managers into false incentives for staff. It has reduced the share of fair pensionable rewards for good work. Now, only (very) high individual output is rewarded - no matter what the quality is. False incentives reward cheating on quality while demotivating everybody who tries to serve the public. As a result, a public service organisation has been turned into a cash-generating machine.

The new career system is not working. It has increased the gap between rewards given to the top producers and the many others who do a good job. Since there is no positive motivation for the majority of staff, the most powerful means left to motivate them is intimidation. The new career system and management by fear have split the staff and destroyed teamwork. Measure 5, as proposed in the EPO’s recently published Financial Measures, would further reduce the share of staff who receive a pensionable reward from 60% to 40%5. These planned additional cuts in benefits will further deteriorate the attractiveness of the EPO as an employer and the quality we deliver to the users of the patent system.

Boeing obtained permission from its regulators to partially certify the safety of its own airplanes. The drive for efficiency led to less safety, which is the major quality aspect of an airplane. At the EPO, the quality of granted patents is measured by the Department Quality Audit (DQA) which reports directly to the president6. In other words, the quality the president is responsible for is certified by himself. And it is the Office which decides who can carry out surveys on applicant satisfaction. Manipulation of the results is easy under the conditions.

Patent applicants have few real alternatives to filing their patent applications with the EPO. That’s why cash continues flowing in. But there is a problem. We are losing our ability to deliver valid patents. If we were in genuine competition, we would lose market share. And if we were to build airplanes, our planes would fall from the sky.

In 2014, when Mr Battistelli led the Office, a former member of our organisation put it like this:

'”We used to have the spirit of the M.I.T., now we have that of Lehman Brothers”'3

Unfortunately, under President Campinos, the situation continues to deteriorate.

________



3 EPO-FLIER No. 26 Moral compass and management’s loss of it (13.06.2016)



4 From patent office to investment bank? (07.12.2017)

5€ SUEPO proposals on the New Career System (SUEPO Munich, 26.11.2019)

6€ Internal Audit: A New Quality” (CSC, 30.08.2019)



Recent Techrights' Posts

CISA Has a Microsoft Conflict of Interest Problem (CISA Cannot Achieve Its Goals, It Protects the Worst Culprit)
people from Microsoft "speaking for" "Open Source" and for "security"
 
Albanian women, Brazilian women & Debian Outreachy racism under Chris Lamb
Reprinted with permission from disguised.work
Microsoft-Funded 'News' Site: XBox Hardware Revenue Declined by 31%
Ignore the ludicrous media spin
Mark Shuttleworth, Elio Qoshi & Debian/Ubuntu underage girls
Reprinted with permission from disguised.work
Karen Sandler, Outreachy & Debian Money in Albania
Reprinted with permission from disguised.work
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 25, 2024
IRC logs for Thursday, April 25, 2024
Links 26/04/2024: Facebook Collapses, Kangaroo Courts for Patents, BlizzCon Canceled Under Microsoft
Links for the day
Gemini Links 26/04/2024: Music, Philosophy, and Socialising
Links for the day
Microsoft Claims "Goodwill" Is an Asset Valued at $119,163,000,000, Cash Decreased From $34,704,000,000 to $19,634,000,000 and Total Liabilities Grew to $231,123,000,000
Earnings Release FY24 Q3
More Microsoft Cuts: Events Canceled, Real Sales Down Sharply
So they will call (or rebrand) everything "AI" or "Azure" or "cloud" while adding revenues from Blizzard to pretend something is growing
Links 25/04/2024: South Korean Military to Ban iPhone, Armenian Remembrance Day
Links for the day
Gemini Links 25/04/2024: SFTP, VoIP, Streaming, Full-Content Web Feeds, and Gemini Thoughts
Links for the day
Audiocasts/Shows: FLOSS Weekly and mintCast
the latest pair of episodes
[Meme] Arvind Krishna's Business Machines
He is harming Red Hat in a number of ways (he doesn't understand it) and Fedora users are running out of patience (many volunteers quit years ago)
[Video] Debian's Newfound Love of Censorship Has Become a Threat to the Entire Internet
SPI/Debian might end up with rotten tomatoes in the face
Joerg (Ganneff) Jaspert, Dalbergschule Fulda & Debian Death threats
Reprinted with permission from disguised.work
Amber Heard, Junior Female Developers & Debian Embezzlement
Reprinted with permission from disguised.work
[Video] Time to Acknowledge Debian Has a Real Problem and This Problem Needs to be Solved
it would make sense to try to resolve conflicts and issues, not exacerbate these
Daniel Pocock elected on ANZAC Day and anniversary of Easter Rising (FSFE Fellowship)
Reprinted with permission from Daniel Pocock
[Video] IBM's Poor Results Reinforce the Idea of Mass Layoffs on the Way (Just Like at Microsoft)
it seems likely Red Hat layoffs are in the making
Ulrike Uhlig & Debian, the $200,000 woman who quit
Reprinted with permission from disguised.work
IRC Proceedings: Wednesday, April 24, 2024
IRC logs for Wednesday, April 24, 2024
Over at Tux Machines...
GNU/Linux news for the past day
Links 24/04/2024: Layoffs and Shutdowns at Microsoft, Apple Sales in China Have Collapsed
Links for the day
Sexism processing travel reimbursement
Reprinted with permission from disguised.work
Girlfriends, Sex, Prostitution & Debian at DebConf22, Prizren, Kosovo
Reprinted with permission from disguised.work
Microsoft is Shutting Down Offices and Studios (Microsoft Layoffs Every Month This Year, Media Barely Mentions These)
Microsoft shutting down more offices (there have been layoffs every month this year)
Balkan women & Debian sexism, WeBoob leaks
Reprinted with permission from disguised.work
Martina Ferrari & Debian, DebConf room list: who sleeps with who?
Reprinted with permission from Daniel Pocock
Links 24/04/2024: Advances in TikTok Ban, Microsoft Lacks Security Incentives (It Profits From Breaches)
Links for the day
Gemini Links 24/04/2024: People Returning to Gemlogs, Stateless Workstations
Links for the day
Meike Reichle & Debian Dating
Reprinted with permission from disguised.work
Europe Won't be Safe From Russia Until the Last Windows PC is Turned Off (or Switched to BSDs and GNU/Linux)
Lives are at stake
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 23, 2024
IRC logs for Tuesday, April 23, 2024
[Meme] EPO: Breaking the Law as a Business Model
Total disregard for the EPO to sell more monopolies in Europe (to companies that are seldom European and in need of monopoly)
The EPO's Central Staff Committee (CSC) on New Ways of Working (NWoW) and “Bringing Teams Together” (BTT)
The latest publication from the Central Staff Committee (CSC)
Volunteers wanted: Unknown Suspects team
Reprinted with permission from Daniel Pocock
Debian trademark: where does the value come from?
Reprinted with permission from Daniel Pocock