Stratecution nugget: incentives work…

money.jpg

… but not in the way that you expect!

Firstly, as Daniel Kahneman points out in his landmark book, Thinking Fast & Slow, quoted above, money drives individualism over team work.

Secondly, as Dan Ariely, another key behavioural economics player, has described again and again, money tends to take us away from focusing on the overall purpose of an organization and towards maximizing our own benefits – and they do not always align.

Thirdly, as shown by Daniel Pink, money as an incentive even in basic jobs tend to reduce performance.

So incentives work, but probably not in the way that you want – instead think of rewarding on a team level with a more profit sharing approach.

Did you like this blog article? Then contact us here, follow us or read some of the other articles on strategy and change at http://www.behaviouralstrategygroup.com.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s