Principlev1

Change incentive structures to align what the system rewards

Change incentive structures to align what the system rewards with what the organization needs rather than hoping people will act against their incentives.

Why This Is a Principle

Derives from behavior following reinforcement (Behaviors that produce satisfying consequences tend to be) and underlying assumptions determining behavior (When espoused values and basic underlying assumptions). The lesson explicitly references Kerr's work on rewarding A while hoping for B. Prescriptive: fix incentive misalignment.

Source Lessons

L-1662

Change the system to change the outcomes

Trying to change outcomes without changing systems produces temporary results at best. When outcomes are system properties (L-1661), durable change requires system redesign — modifying the structures, processes, incentives, and information flows that produce the current outcomes. Exhortation ("try harder"), training ("learn better"), and personnel changes ("get better people") all fail when the system itself is designed to produce the outcome you are trying to eliminate. The system always wins.

Connections

Derived From (2)

AxiomBehaviors that produce satisfying consequences tend to be AxiomWhen espoused values and basic underlying assumptions

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