Business Incentive Quotes

People will typically be more enthusiastic where they feel a sense of belonging and see themselves as part of a community than they will in a workplace in which each person is left to his own devices

Pick a leader who will make their citizens proud. One who will stir the hearts of the people, so that the sons and daughters of a given nation strive to emulate their leader's greatness. Only then will a nation be truly great, when a leader inspires and produces citizens worthy of becoming future leaders, honorable decision makers and peacemakers. And in these times, a great leader must be extremely brave. Their leadership must be steered only by their conscience, not a bribe.

Pick a leader who will keep jobs in your country by offering companies incentives to hire only within their borders, not one who allows corporations to outsource jobs for cheaper labor when there is a national employment crisis. Choose a leader who will invest in building bridges, not walls. Books, not weapons. Morality, not corruption. Intellectualism and wisdom, not ignorance. Stability, not fear and terror. Peace, not chaos. Love, not hate. Convergence, not segregation. Tolerance, not discrimination. Fairness, not hypocrisy. Substance, not superficiality. Character, not immaturity. Transparency, not secrecy. Justice, not lawlessness. Environmental improvement and preservation, not destruction. Truth, not lies.

In a word, we may reasonably hope for the virtual abolition of education when I'm as good as you has fully had its way. All incentives to learn and all penalties for not learning will vanish.The few who might want to learn will be prevented; who are they to overtop their fellows? And anyway the teachers--or should I say, nurses?--will be far too busy reassuring the dunces and patting them on the back to waste any time on real teaching. We shall no longer have to plan and toil to spread imperturable conceit and incurable ignorance among men. The little vermin themselves will do it for us.

Pick a leader who will not only bail out banks and airlines, but also families from losing their homes -- or jobs due to their companies moving to other countries. Pick a leader who will fund schools, not limit spending on education and allow libraries to close. Pick a leader who chooses diplomacy over war. An honest broker in foreign relations. A leader with integrity, one who says what they mean, keeps their word and does not lie to their people. Pick a leader who is strong and confident, yet humble. Intelligent, but not sly. A leader who encourages diversity, not racism. One who understands the needs of the farmer, the teacher, the doctor, and the environmentalist -- not only the banker, the oil tycoon, the weapons developer, or the insurance and pharmaceutical lobbyist.

With limited accountability, misaligned incentives, and lagging legislation, today’s governance systems and structures do not align with the sustainability of humanity or the planet that hosts us.

Like any other tool for facilitating the completion of a questionable task, rewards offer a "how" answer to what is really a "why" question.

There are three basic flavours of incentive: economic, social and moral.

We have made money our god and called it the good life. We have trained our children to go for jobs hat bring the quickest corporate advancements at the highest financial levels. We have taught them careerism but not ministry and wonder why ministers are going out of fashion. We fear coddling the poor with food stamps while we call tax breaks for the rich business incentives. We make human community the responsibility of government institutions while homelessness, hunger, and drugs seep from the centers of our cities like poison from open sores for which we do not seek either the cause or the cure. We have created a bare and sterile world of strangers where exploitation is a necessary virtue. We have reduced life to the lowest of values so that the people who have much will not face the prospect of having less. Underlying all of it, we have made women the litter bearers of a society where disadvantage clings to the bottom of the institutional ladder and men funnel to the top, where men are privileged and women are conscripted for the comfort of the human race. We define women as essential to the development of the home but unnecessary to the development of society. We make them poor and render them powerless and shuttle them from man to man. We sell their bodies and question the value of their souls. We call them unique and say they have special natures, which we then ignore in their specialness. We decide that what is true of men is true of women and then say that women are not as smart as men, as strong as men, or as capable as men. We render half the human race invisible and call it natural. We tolerate war and massacre, mayhem and holocaust to right the wrongs that men say need righting and then tell women to bear up and accept their fate in silence when the crime is against them. What’s worse, we have applauded it all—the militarism, the profiteering, and the sexisms—in the name of patriotism, capitalism, and even religion. We consider it a social problem, not a spiritual one. We think it has something to do with modern society and fail to imagine that it may be something wrong with the modern soul. We treat it as a state of mind rather than a state of heart. Clearly, there is something we are failing to see.

If we can find short-term incentives that are consistent with our long-term objectives, it is much easier to make the right decisions in the moment.

He had been taught as a child that Urras was a festering mass of inequity, iniquity, and waste. But all the people he met, and all the people he saw, in the smallest country village, were well dressed, well fed, and contrary to his expectations, industrious. They did not stand about sullenly waiting to be ordered to do things. Just like Anaresti, they were simply busy getting things done. It puzzled him. He had assumed that if you removed a human being's natural incentive to work -- his initiative, his spontaneous creative energy -- and replaced it with external motivation and coercion, he would become a lazy and careless worker. But no careless workers kept those lovely farmlands, or made the superb cars and comfortable trains. The lure and compulsion of profit was evidently a much more effective replacement of the natural initiative than he had been led to believe.

Our prevailing system of management has destroyed our people. People are born with intrinsic motivation, self-respect, dignity, curiosity to learn, joy in learning. The forces of destruction begin with toddlers—a prize for the best Halloween costume, grades in school, gold stars—and on up through the university. On the job, people, teams, and divisions are ranked, reward for the top, punishment for the bottom. Management by Objectives, quotas, incentive pay, business plans, put together separately, division by division, cause further loss, unknown and unknowable.

Good management has a lot to do with incentives and decentives. It's about making sure the company has systems in place that incentivize desired behaviors and decentivize undesirable behavior.

From the earliest days at Apple, I realized that we thrived when we created intellectual property. If people copied or stole our software, we’d be out of business. If it weren’t protected, there’d be no incentive for us to make new software or product designs. If protection of intellectual property begins to disappear, creative companies will disappear or never get started. But there’s a simpler reason: It’s wrong to steal. It hurts other people. And it hurts your own character.

18 NEVER PAY YOUR LAWYER BY THE HOUR Incentive Super-Response Tendency To control a rat infestation, French colonial rulers in Hanoi in the nineteenth century passed a law: for every dead rat handed in to the authorities, the catcher would receive a reward. Yes, many rats were destroyed, but many were also bred specially for this purpose. In 1947, when the Dead Sea scrolls were discovered, archaeologists set a finder’s fee for each new parchment. Instead of lots of extra scrolls being found, they were simply torn apart to increase the reward. Similarly, in China in the nineteenth century, an incentive was offered for finding dinosaur bones. Farmers located a few on their land, broke them into pieces and cashed in. Modern incentives are no better: company boards promise bonuses for achieved targets. And what happens? Managers invest more energy in trying to lower the targets than in growing the business. These are examples of the incentive super-response tendency. Credited to Charlie Munger, this titanic name describes a rather trivial observation: people respond to incentives by doing what is in their best interests. What is noteworthy is, first, how quickly and radically people’s behaviour changes when incentives come into play or are altered and, second, the fact that people respond to the incentives themselves and not the grander intentions behind them.

That said, I dare to hope that one day the online advertising business model will die in a fucking dumpster fire; that the news media will no longer have incentives to optimize content for emotional impact but, rather, for informational utility; that technology will seek not to exploit our psychological fragility but, rather, to counterbalance it; that information will be worth something again; that anything will be worth something again.

The Industrial Revolution started and made its biggest strides in England because of her uniquely inclusive economic institutions. These in turn were built on foundations laid by the inclusive political institutions brought about by the Glorious Revolution. It was the Glorious Revolution that strengthened and rationalized property rights, improved financial markets, undermined state-sanctioned monopolies in foreign trade, and removed the barriers to the expansion of industry. It was the Glorious Revolution that made the political system open and responsive to the economic needs and aspirations of society. These inclusive economic institutions gave men of talent and vision such as James Watt the opportunity and incentive to develop their skills and ideas and influence the system in ways that benefited them and the nation. Naturally these men, once they had become successful, had the same urges as any other person. They wanted to block others from entering their businesses and competing against them and feared the process of creative destruction that might put them out of business, as they had previously bankrupted others.

While families had incentives to curtail women’s work outside the home, employers had countervailing incentives to try to tap this large potential source of workers. Early New England mill owners, for example, tried to reassure parents of the safety and propriety of letting their daughters work in their businesses by having all-female workforces, often overseen by older women who in effect were chaperons, especially when the young women lived away from home.

People act in ways to maximize their self-interest within a company, so create incentives that align employee's objectives with the organization's mission statement. Reward compliance with core values as much as profitability, especially in the face of competitive pressures.

I think my political transformation began with my exposure to the business-as-usual attitude of many civil service bureaucrats during the war; then came the attempted Communist take-over of the picture business, which a lot of my liberal friends refused to admit ever happened; next, I had a brief experience living in a country that promised the kind of womb-to-tomb utopian benevolence a lot of these liberal friends wanted to bring to America. In 1949, I spent four months in England filming The Hasty Heart while the Labor Party was in power. I saw firsthand how the welfare state sapped incentive to work from many people in a wonderful and dynamic country.

Because when the law implicitly or explicitly limits internal competition and bars new entrants, businesses have little, if any, incentive to innovate. As a result, regulated businesses—which include public utilities, air travel, defense, health care, and food and drugs—have fallen dangerously far behind in adopting exponential technologies. Once the disruptors do find a way in, collapse is that much more sudden.

Another Presidential election was less than two years off. There would have to be fast work to ward off disaster. Far-sighted people, North and South, even foresaw the laboring people soon forsaking both of the old parties and going Socialist. Politicians and business men shuddered at the thought of such a tragedy and saw horrible visions of old-age pensions, eight-hour laws, unemployment insurance, workingmen’s compensation, minimum-wage legislation, abolition of child labor, dissemination of birth-control information, monthly vacations for female workers, two-month vacations for prospective mothers, both with pay, and the probable killing of individual initiative and incentive by taking the ownership of national capital out of the hands of two million people and putting it into the hands of one hundred and twenty million.

Encouraging consumers to think more seriously about the financial, environmental, and personal costs of their consumption would be a major step in addressing the crisis of quality and the environmental and social impacts of too much stuff. Better yet, it would spur businesses to seek economic incentives to design and market better products. Today's secondhand economy, faltering in search of quality, should have more than it can handle.

Blogs are assailed on all sides, by the crushing economics of the business, dishonest sources, inhuman deadlines, pageview quotas, inaccurate information, greedy publishers, poor training, the demands of the audience, and so much more. These incentives are real, whether you're at The Huffington Post or some tiny blog. Taken individually, the resulting output is obvious: bad stories, incomplete stories, wrong stories, unimportant stories.

The transformation of a business-as-usual culture into one focused on innovation and driven by design involves activities, decisions, and attitudes. Workshops help expose people to design thinking as a new approach. Pilot projects help market the benefits of design thinking within the organization. Leadership focuses the program of change and gives people permission to learn and experiment. Assembling interdisciplinary teams ensures that the effort is broadly based. Dedicated spaces such as the P&G Innovation Gym provide a resource for longer-term thinking and ensure that the effort will be sustained. Measurement of impacts, both quantitative and qualitative, helps make the business case and ensures that resources are appropriately allocated. It may make sense to establish incentives for business units to collaborate in new ways so that younger talent sees innovation as a path to success rather than as a career risk.

The key issue in economics is not aligning incentives with some putative public good but aligning knowledge with power. Business investments have both a financial and an epistemic yield. Capitalism catalytically joins the two. Capitalist economies grow because they award wealth to its creators, who have already proved that they can increase it. Their tests yield knowledge because they are falsifiable; they can be exposed as wrong. Businesses are subject to failure.

Open source philosophies once promised to democratize access to cutting-edge technologies radically. Yet for AI, the eventual outcome of the high-stakes battle between open and closed systems remains highly uncertain. Powerful incentives pull major corporate powers to co-opt open source efforts for greater profit and control, however subtly such dynamics might unfold. Yet independent open communities intrinsically chafe against restrictions and centralized control over capacity to innovate. Both sides are digging in for a long fight.

Government courts seek to stay in power and maintain their influence. They depend on other parts of government for their budgets and have no incentive to go against the general agenda. Once this relationship is established, it is easy for politicians to pass laws that go completely against any rational sense of justice and have the courts behind them. Courts become part of the machine, convicting us of victimless crimes to keep police busy, keeping the politicians and their sponsors happy, and providing a flow of bodies to the prisons.

A prison is perhaps the easiest place to see the power of bad incentives. And yet in many walks of life, we find otherwise normal men and women caught in the same trap and busily making the world much less good than it could be. Elected officials ignore long-term problems because they must pander to the short-term interests of voters. People working for insurance companies rely on technicalities to deny desperately ill patients the care they need. CEOs and investment bankers run extraordinary risks—both for their businesses and for the economy as a whole—because they reap the rewards of success without suffering the penalties of failure. District attorneys continue to prosecute people they know to be innocent because their careers depend on winning cases. Our government fights a war on drugs that creates the very problem of black-market profits and violence that it pretends to solve. We need systems that are wiser than we are. We need institutions and cultural norms that make us more honest and ethical than we tend to be. The project of building them is distinct from—and, in my view, even more important than—an individual’s refining his personal ethical code.

Drive: The Surprising Truth About What Motivates Us, Daniel Pink reviews the research on human motivation for the past forty years and concludes that most businesses are ignoring what the scientific evidence clearly suggests they should do.7 They continue to manage by relying heavily on extrinsic motivators, symbolized by the proverbial carrot-and-stick approach—the use of incentives and threats. But extrinsic motivators are only effective when the work lacks inherent meaning and the potential for creativity and satisfaction, such as with assembly lines where simple rote tasks must be repeated without end.

There was no reason why Fox, which, by the time I joined, had been in business for nearly a decade and had been number one in the ratings for more than two years, should still have been running such a rinky-dink operation, with broken-down tape machines, control rooms that smelled like a sewer whenever it rained more than half an inch, chronic intentional understaffing, and a workforce composed of barely trained, underpaid children like myself. But that was the business model, and the ratings were good enough—and the on-air product was just this side of mistake-free enough—that there was no incentive for the bosses to change it.

Know then that the arbitrary appropriation by the government of men’s property results in the loss of all incentive to gain, when men realize that what they have accumulated will be taken away firom them. A loss of incentive will lead to a slackening in enterprise, the slackening being proportional to the extent and degree of confiscation. Thus if confiscation is widespread, covering all forms of economic activity, there will be a general slackening, owing to the feeling that no branch offers any longer any hope of gain. If however confiscation be mild, there will be only a relatively slight falling off in economic activity. Now the state of a society and the prosperity of business depend on the intensity of human efforts and the search for gain; should, therefore, men slacken in their economic activity the markets would slump and the state of society deteriorate. People would forsake that country and migrate elsewhere in search of gain, the result being a general depopulation and the desertion of cities. And this deterioration in society would be followed by a weakening of the State, for the State is as the Form whose condition follows that of its Matter, Society. . . Oppression ruins society, while the ruin of society leads to the weakening and destruction of the State.

Within a few centuries, the new capitalist spirit challenged the basic Christian ethic: the boundless ego of Sir Gales Overreach and his fellows in the marketplace had no room for charity or love in any of their ancient senses. The capitalist scheme of values in fact transformed five of the seven deadly sins of Christianity-pride, envy, greed, avarice, and lust-into positive social virtues, treating them as necessary incentives to all economic enterprise; while the cardinal virtues, beginning with love and humility, were rejected as 'bad for business,' except in the degree that they made the working class more docile and more amenable to cold-blooded exploitation.

received a message on LinkedIn from an IBM executive who wrote, “Pat, I’ve been at IBM for a while and I have been following your content for a few years. I make good money, but I really want to be an entrepreneur. However, I have a wife and three kids and I’m kind of worried about them. What should I do?” We emailed back and forth for a while, and I asked him questions about who he wanted to be. He began to see that intrapreneurship looked like the ideal choice for him. This is when you’re part of a company and create a new business unit, lead a new initiative, or work out incentives that reward you for driving growth and innovation. In some cases, it might just mean being so indispensable that a company has to pay you equity to retain you.

The mated males are biased. They want more females here for their own females. Many of the single males will likely have an issue, since it is tradition.” “Well if the single males want more females here, that’s the only way to do it. They’re only hurting themselves.” His fingers flexed slightly against hers. “Why do you think females would come here, anyway?” “Why wouldn’t they? I knew nothing about this sector and even after my tour I still don’t know much about it. Maybe if there was an attraction here— other than the males— it would bring more females.” He straightened and pushed up so that his hands caged her against the headboard. “This facility puts out the best warriors and we do some of the most intense and covert off-world missions. We will not have attractions here like a… carnival.” She blinked, realizing he’d misunderstood her. Unable to stop herself, a giggle escaped. She cupped the side of his face. Midnight black stubble already covered his jaw. She shivered, remembering the feel of it against her inner thighs not too long ago. “I didn’t mean that kind of attraction. I mean, give the females an incentive, like luxury housing or the chance to run a business here. There are so many business opportunities here for women. So far I’ve only seen one clothing shop and one bakery run by females.” He was silent a long moment as he watched her. “I think I might be biased too.” “How so?” “Because I want to change the law simply to please you.” The way he said it was almost grudging.

For if single women are looking for government to create a "hubby state" for them, what is certainly true is that their male counterparts have a long enjoy the fruits of a related "wifey state," in which the nation and its government supported male independence in a variety of ways. Men, and especially married wealthy white men, have a long relied on government assistance. It's a government that has historically supported white men's home and business ownership through grants, loans, incentives, and tax breaks. It has allowed them to accrue wealth and offer them shortcuts and bonuses for passing it down to their children. Government established white men's right to vote and thus exert control over the government at the nation's founding and has protected their enfranchisement. It has also bolstered the economic and professional prospects of men by depressing the economic prospects of women: by failing to offer women equivalent economic and civic protections, thus helping to create conditions whereby women were forced to be dependent on those men, creating a gendered class of laborers who took low paying or unpaid jobs doing the domestic and childcare work that further enabled men to dominate public spheres. But the growth of a massive population of women who are living outside those dependent circumstances puts new pressures on the government: to remake conditions in a way that will be more hospitable to female independence, to a citizenry now made up of plenty of women living economically, professionally, sexually, and socially liberated lives.

Because incentives trigger a primitive, engrained response, they produce a number of unintended consequences. First, they strongly reinforce self-aggrandizement, so much so that people can dedicate highly creative energy toward the counterproductive purpose of gaming the system. Second, they focus people’s attention on the incentive, rather than on customers. Third, they reduce the sense of agency and locus of control in workers, placing it instead in the hands of those who are creating the incentives and providing the rewards. This not only undermines the ability to be self-managing, it also infantilizes people. Thus it is small wonder, given the ubiquity of this practice, that Americans struggle to see themselves as engaged, empowered participants in their own democratic institutions.

Singapore's tragedy is not the absence of idealism, but that it systematically rewards the individualistic majority and discourages the socially-conscious minority. This is at odds with Singapore's self-image as a communitarian Asian society, an image conjured up largely to justify the protection of family values and paternalistic government. In truth, the overwhelming ethos is to mind your own business. Singapore's embrace of the market forces - based on the PAP's clear appreciation of the fact that people's desire to live in comfort is the most powerful force for civilisation's progress - has provided rich incentives for Singaporeans to work hard, and create wealth. But its exercise of illiberal controls to maintain ownership of the public sphere adds up to a heavy tax on thinking socially and acting politically. The public has been privatised.

A more recent concern relates to “financialization” and associated short-termism. Financialization is the growing importance of norms, metrics, and incentives from the financial sector to the wider economy. Some of the concerns expressed are that, for example, managers are increasingly awarded stock options to align their incentives with those of shareholders; companies are often explicitly managed to increase short-term shareholder value; and financial engineering, such as share buybacks and earnings management, has become a more important part of senior managers’ jobs. The end result is that rather than finance serving business, business serves finance: the tail wags the dog. What John Kay described as “obliquity,” the idea that making money was a consequence of, or a second-order benefit of, serving one’s customers and building good businesses, is driven out (Kay 2010).

Back in 1995, Munger had given a talk at Harvard Business School called “The Psychology of Human Misjudgment.” If you wanted to predict how people would behave, Munger said, you only had to look at their incentives. FedEx couldn’t get its night shift to finish on time; they tried everything to speed it up but nothing worked—until they stopped paying night shift workers by the hour and started to pay them by the shift. Xerox created a new, better machine only to have it sell less well than the inferior older ones—until they figured out the salesmen got a bigger commission for selling the older one. “Well, you can say, ‘Everybody knows that,’” said Munger. “I think I’ve been in the top five percent of my age cohort all my life in understanding the power of incentives, and all my life I’ve underestimated it. And never a year passes but I get some surprise that pushes my limit a little farther.” Munger’s

If there are costs to becoming legal, there are also bound to be costs to remaining outside the law. We found that operating outside the world of legal work and business was surprisingly expensive. In Peru, for example, the cost of operating a business extralegally includes paying 10 to 15 per cent of its annual income in bribes and commissions to authorities. Add to such payoffs the costs of avoiding penalties, making transfers outside legal channels and operating from dispersed locations and without credit, and the life of the extralegal entrepreneur turns out to be far more costly and full of daily hassles than that of the legal businessman. Perhaps the most significant cost was caused by the absence of institutions that create incentives for people to seize economic and social opportunities to specialize within the market place. We found that people who could not operate within the law also could not hold property efficiently or enforce contracts through the courts; nor could they reduce uncertainty through limited liability systems and insurance policies, or create stock companies to attract additional capital and share risk. Being unable to raise money for investment, they could not achieve economies of scale or protect their innovations through royalties and patents.

Here’s the four point battle plan, which we’ll return to at the end of the book: Disregard the Doomsayers: The misguided belief that “it’s too late” to act has been co-opted by fossil fuel interests and those advocating for them. It’s just another way of legitimizing business-as-usual and a continued reliance on fossil fuels. We must reject the overt doom and gloom that we increasingly encounter in today’s climate discourse. A Child Shall Lead Them: The youngest generation is fighting tooth and nail to save their planet, and there is a moral authority and clarity in their message that none but the most jaded ears can fail to hear. They are the game-changers that climate advocates have been waiting for. We should model our actions after theirs and learn from their methods and their idealism. Educate, Educate, Educate: Most hard-core climate-change deniers are unmovable. They view climate change through the prism of right-wing ideology and are impervious to facts. Don’t waste your time and effort trying to convince them. But there are many honest, confused folks out there who are caught in the crossfire, victims of the climate-change disinformation campaign. We must help them out. Then they will be in a position to join us in battle. Changing the System Requires Systemic Change: The fossil fuel disinformation machine wants to make it about the car you choose to drive, the food you choose to eat, and the lifestyle you choose to live rather than about the larger system and incentives. We need policies that will incentivize the needed shift away from fossil fuel burning toward a clean, green global economy. So-called leaders who resist the call for action must be removed from office.

Managerial abilities, bureaucratic skills, technical expertise, and political talent are all necessary, but they can be applied only to goals that have already been defined by military policies, broad and narrow. And those policies can be only as good as strategy, operational art of war, tactical thought, and plain military craft that have gone into their making. At present, the defects of structure submerge or distort strategy and operational art, they out rightly suppress tactical ingenuity, and they displace the traditional insights and rules of military craft in favor of bureaucratic preferences, administrative convenience, and abstract notions of efficiency derived from the world of business management. First there is the defective structure for making of military decisions under the futile supervision of the civilian Defense Department; then come the deeply flawed defense policies and military choices, replete with unnecessary costs and hidden risks; finally there come the undoubted managerial abilities, bureaucratic skills, technical expertise, and political talents, all applied to achieve those flawed policies and to implement those flawed choices. By this same sequence was the fatally incomplete Maginot Line built, as were all the Maginot Lines of history, each made no better by good government, technical talent, careful accounting, or sheer hard work. Hence the futility of all the managerial innovations tried in the Pentagon over the years. In the purchasing of weapons, for example, “total package” procurement, cost plus incentive contracting, “firm fixed price” purchasing have all been introduced with much fanfare, only to be abandoned, retried, and repudiated once again. And each time a new Secretary of Defense arrives, with him come the latest batch of managerial innovations, many of them aimed at reducing fraud, waste, and mismanagement-the classic trio endlessly denounced in Congress, even though they account for mere percentage points in the total budget, and have no relevance at all to the failures of combat. The persistence of the Administrator’s Delusion has long kept the Pentagon on a treadmill of futile procedural “reforms” that have no impact at all on the military substance of our defense. It is through strategy, operational art, tactical ingenuity, and military craft that the large savings can be made, and the nation’s military strength greatly increased, but achieving long-overdue structural innovations, from the central headquarters to the combat forces, from the overhead of bases and installations to the current purchase of new weapons. Then, and only then, will it be useful to pursue fraud, waste, and mismanagement, if only to save a few dollars more after the billions have already been saved. At present, by contrast, the Defense Department administers ineffectively, while the public, Congress, and the media apply their energies to such petty matters as overpriced spare parts for a given device in a given weapon of a given ship, overlooking at the same time the multibillion dollar question of money spent for the Navy as a whole instead of the Army – whose weakness diminishes our diplomatic weight in peacetime, and which could one day cause us to resort to nuclear weapons in the face of imminent debacle. If we had a central military authority and a Defense Department capable of strategy, we should cheerfully tolerate much fraud, waste, and mismanagement; but so long as there are competing military bureaucracies organically incapable of strategic combat, neither safety nor economy will be ensured, even if we could totally eliminate every last cent of fraud, waste, and mismanagement.

The quality of our thinking is largely influenced by the mental models in our heads. While we want accurate models, we also want a wide variety of models to uncover what’s really happening. The key here is variety. Most of us study something specific and don’t get exposure to the big ideas of other disciplines. We don’t develop the multidisciplinary mindset that we need to accurately see a problem. And because we don’t have the right models to understand the situation, we overuse the models we do have and use them even when they don’t belong. You’ve likely experienced this first hand. An engineer will often think in terms of systems by default. A psychologist will think in terms of incentives. A business person might think in terms of opportunity cost and risk-reward. Through their disciplines, each of these people sees part of the situation, the part of the world that makes sense to them. None of them, however, see the entire situation unless they are thinking in a multidisciplinary way. In short, they have blind spots. Big blind spots. And they’re not aware of their blind spots. [...] Relying on only a few models is like having a 400-horsepower brain that’s only generating 50 horsepower of output. To increase your mental efficiency and reach your 400-horsepower potential, you need to use a latticework of mental models. Exactly the same sort of pattern that graces backyards everywhere, a lattice is a series of points that connect to and reinforce each other. The Great Models can be understood in the same way—models influence and interact with each other to create a structure that can be used to evaluate and understand ideas. [...] Without a latticework of the Great Models our decisions become harder, slower, and less creative. But by using a mental models approach, we can complement our specializations by being curious about how the rest of the world works. A quick glance at the Nobel Prize winners list show that many of them, obviously extreme specialists in something, had multidisciplinary interests that supported their achievements. [...] The more high-quality mental models you have in your mental toolbox, the more likely you will have the ones needed to understand the problem. And understanding is everything. The better you understand, the better the potential actions you can take. The better the potential actions, the fewer problems you’ll encounter down the road. Better models make better decisions.

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Are you creating a way for your middle tier customers to buy your products by giving them discounts and incentives? 

Most neoclassical economists would argue that state-owned firms will inevitably be less efficient than private ones because the state lacks the proper incentives to run enterprises efficiently. The state does not have to fear bankruptcy, since it can keep businesses going out of tax dollars or, at worst, by printing money. It also has strong incentives to use the firm for political ends like job creation and patronage. These deficiencies of public ownership have been the underlying justification for the global move toward privatization over the past decade. But state-owned enterprises can be run more or less efficiently, and any final judgment as to the efficiency price paid for nationalization has to be measured against the entrepreneurial capabilities of that society’s private sector. In France, nationalized companies have often been allowed considerable managerial discretion and operate not much differently from their private sector counterparts.36

Work through the politics. Even political problems are soluble. Most people in business are rational, at least in their business conduct. They react to incentives. Therefore, when you face political opposition, it usually means that your solution has negative implications for someone in the organization. So politics is just people acting in their own interests. To work through the politics, you must think about how your solution affects the players in an organization. You must then build a consensus for change that takes account of the different incentives and organizational factors driving the politics.

FOCUSING TOO MUCH ON THE NUMBERS In the second example, I managed the team to a set of numbers that did not fully capture what I wanted. I wanted a great product that customers would love with high quality and on time—in that order. Unfortunately, the metrics that I set did not capture those priorities. At a basic level, metrics are incentives. By measuring quality, features, and schedule and discussing them at every staff meeting, my people focused intensely on those metrics to the exclusion of other goals. The metrics did not describe the real goals and I distracted the team as a result. Interestingly, I see this same problem play out in many consumer Internet startups. I often see teams that maniacally focus on their metrics around customer acquisition and retention. This usually works well for customer acquisition, but not so well for retention. Why? For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep enough on the actual user experience. This generally results in a frantic numbers chase that does not end in a great product. It’s important to supplement a great product vision with a strong discipline around the metrics, but if you substitute metrics for product vision, you will not get what you want.

Obama’s failure to act has been blamed on his inexperience, his unfamiliarity with finance and business, and a personal tendency to avoid conflict (or, to be blunt, on his being a coward). Some, including my colleague Charles Morris, also feel that the political system is now so gridlocked and dysfunctional that transformative policy changes are simply no longer feasible by anyone, so that Obama really couldn’t have done anything even if he had tried. If so, then we’re really screwed. But if anyone had a shot, it was Barack Obama in 2009, and he didn’t try. Admittedly, it would have taken real personal courage, and it would have been a hard fight—Wall Street would not have just rolled over. The logic and incentive structures of America’s political duopoly are such that in taking the path of least resistance, Obama was surely acting in his, and his party’s, rational self-interest. But whatever Obama’s personal motivations, America (and indeed the whole world) will pay dearly for his failure for a long time.

In “The Corrupt Business of Child Protective Services,” former congresswoman Nancy Schaefer outlines how this bill led to children being treated as merchandise. The act offered “adoption incentive bonuses” to CPS for every child that the agency removed. Yet again, the “good intentions” of politicians have led to tragic consequences. There

Publicly traded corporations direct financial surpluses back to investors, CEOs, and boards of directors. They have little incentive to churn it back into the business and, as we have seen, a great deal of incentive to maximize surpluses at the expense of employees, the environment, and even the corporation itself.82

As Charlie Munger has said, “I think I’ve been in the top 5% of my age cohort almost my entire adult life in understanding the power of incentives, and yet I’ve always underestimated that power. Never a year passes but I get some surprise that pushes a little further my appreciation of incentive superpower.” An example from FedEx is one of his favorite cases in point. As he explains, the integrity of the FedEx system relies heavily on the ability to unload and then quickly reload packages at one central location within an allotted time. Years ago, the company was having a terrible problem getting its workers to get all the boxes off and then back on the planes in time. They tried numerous different things that didn’t work, until someone had the brilliant idea of paying the workers by the shift as opposed to by the hour. Poof, the problem was solved.2 FedEx’s old pay-by-the-hour system rewarded those who took longer to get the job done. They were incentivized to take longer. By switching to pay-by-the-shift, workers were motivated to work faster and without error so they could go home, yet still earn the wages of a full shift. For the workers, finishing early amounted to a higher effective hourly wage. By aligning the business’s interests with the worker’s incentives, FedEx got the outcome it and its workers both desired. The

The payments system is the heart of the financial services industry, and most people who work in banking are engaged in servicing payments. But this activity commands both low priority and low prestige within the industry. Competition between firms generally promotes innovation and change, but a bank can gain very little competitive advantage by improving its payment systems, since the customer experience is the result more of the efficiency of the system as a whole than of the efficiency of any individual bank. Incentives to speed payments are weak. Incrementally developed over several decades, the internal systems of most banks creak: it is easier, and implies less chance of short-term disruption, to add bits to what already exists than to engage in basic redesign. The interests of the leaders of the industry have been elsewhere, and banks have tended to see new technology as a means of reducing costs rather than as an opportunity to serve consumer needs more effectively. Although the USA is a global centre for financial innovation in wholesale financial markets, it is a laggard in innovation in retail banking, and while Britain scores higher, it does not score much higher. Martin Taylor, former chief executive of Barclays (who resigned in 1998, when he could not stop the rise of the trading culture at the bank), described the state of payment systems in this way: ‘the systems architecture at the typical big bank, especially if it has grown through merger and acquisition, has departed from the Palladian villa envisaged by its original designers and morphed into a gothic house of horrors, full of turrets, broken glass and uneven paving.

The industrial world of pipelines relies heavily on push. Consumers are accessed through specific marketing and communication channels that the business owns or pays for. In a world of scarcity, options were limited, and getting heard often sufficed to get marketers and their messages in front of consumers. In this environment, the traditional advertising and public relations industries focused almost solely on awareness creation—the classic technique for “pushing” a product or service into the consciousness of a potential customer. This model of marketing breaks down in the networked world, where access to marketing and communication channels is democratized—as illustrated, for example, by the viral global popularity of YouTube videos such as PSY’s “Gangnam Style” and Rebecca Black’s “Friday.” In this world of abundance—where both products and the messages about them are virtually unlimited—people are more distracted, as an endless array of competing options is only a click or a swipe away. Thus, creating awareness alone doesn’t drive adoption and usage, and pushing goods and services toward customers is no longer the key to success. Instead, those goods and services must be designed to be so attractive that they naturally pull customers into their orbit. Furthermore, for a platform business, user commitment and active usage, not sign-ups or acquisitions, are the true indicators of customer adoption. That’s why platforms must attract users by structuring incentives for participation—preferably incentives that are organically connected to the interactions made possible by the platform. Traditionally, the marketing function was divorced from the product. In network businesses, marketing needs to be baked into the platform.

drive to win and the desire to make a profit are given by God to provide the incentive required for conquering exceptional challenges.

The Keystone XL pipeline argument has become a ridiculous proxy for the environmentalist lobby’s complete disdain of the oil companies and a very pro-business U.S. energy policy Equally, the irrelevant case of Solyndra became the headline for the ‘uselessness’ of government incentives for renewable technology development. We should expect to see all the partisan dumbness this country can so easily muster on both sides when a gas tax to support renewable energy development is introduced. No matter. Its time has come, and I hope the next President of the United States has the courage to at least suggest it and force a discussion. Our current one clearly doesn't.

The only incentive you want to offer is the promise of a solution to their problem.

But the current investment banking model—whether applied in a standalone institution such as Goldman or in a broad financial conglomerate such as Deutsche Bank—is at the heart of the problems the finance sector poses for the real economy. Investment banks today engage in securities issuance, corporate advice and asset management; they make markets in equities and FICC, and trade in these markets on their own account. It is only necessary to list these functions to see that each of these activities conflicts with all the others. Each should be undertaken in distinct institutions. And with lower volumes of inter-bank trading, a diminished role for public equity markets and much more direct investment by asset managers the scale of most of these activities should be much reduced. Among all the actors in the finance sector today, only the asset manager, who typically earns a fee calculated as a percentage of funds under management, is rewarded for idleness. The profits of a segregated deposit-taking bank would similarly depend primarily on the scale of the deposit base, and secondarily on its success in making good loans. Dedicated channels of capital allocation have a more appropriate incentive structure than activities focused on trading and transactions. Whenever

These are all executives who have been trained for years to grow their own businesses and are compensated based on their profitability. Suddenly I was saying to them, essentially, “I want you to pay less attention to the business at which you’ve been very successful, and start paying more attention to this other thing. And by the way, you have to work on this new thing along with these other very competitive people from other teams, whose interests don’t necessarily line up with yours. And one more thing, it won’t make money for a while.” In order to get them all on board, I not only had to reinforce why these changes were necessary, but I also had to create an entirely new incentive structure to reward them for their work. I couldn’t penalize them for the purposeful erosion and disruption of their businesses, and yet there were no early bottom-line metrics to assess “success” in the new business. We

Bureaucrats work for government, and government faces no competition. People who work at the post office - as kind and thoughtful as they may be - have less incentive than do workers at the local grocery store to be concerned with customers having a good experience and coming back. If the post office cannot earn enough money from customers who use its service (as it hasn’t for more than the last decade), it can turn to the federal government for increased funding. The government, in turn, will coerce the funding from taxpayers. By contrast, a grocery store would just go out of business to be replaced with one that served its customers better.

In his 2008 essay “The Constitution in the National Surveillance State,” law professor Jack Balkin observed that the Constitution inhibits government actors from high-velocity pursuit of their surveillance agenda, and this creates incentives for the government “to rely on private enterprise to collect and generate information for it.”87 Balkin noted that the Supreme Court has imposed few privacy restrictions on business records and information that people give to third parties. E-mail is typically held in private servers, making its protection “limited if not nonexistent.” This absence of law made private companies attractive partners for government actors bound to democratic constraints.

In an age of extreme automation and globalization, how can the 90 percent for whom income is stagnant or falling respond? For the Tea Party, the answer is to circle the wagons around family and church, and to get on bended knee to multinational companies to lure them to you from wherever they are. This is the strategy Southern governors have used to lure textile firms from New England or car manufacturers from New Jersey and California, offering lower wages, anti-union legislation, low corporate taxes, and big financial incentives. For the liberal left, the best approach is to nurture new business through a world-class public infrastructure and excellent schools. An example is what many describe as the epicenter of a new industrial age: Silicon Valley—with Google, Twitter, Apple, and Facebook—and its environs, as well as the electric car and solar industries. The reds might be the Louisiana model, and to some degree, the blues are the California one.

The ability to make rational decisions is limited, or bounded, by the extent of people’s information. To broaden employees’ understanding, a firm should promote a tradition of teamwork and interdependence and develop future leaders by rotating them among work assignments in different departments and geographic locations. In order to reduce structural secrecy, there may be short-term opportunity costs, but the long-term benefits are significant.12 Firms must think about long-term greed and what it means. Through actions and training, leaders must explain the pressures on short-term thinking and how the firm resolves the conflicts of short- and long-term goals. Potentially conflicting or confusing organizational goals, such as putting clients first while also having a duty to shareholders, require strong signals from leadership as to what is acceptable and unacceptable behavior. These nuances cannot be left to statements of principles; they must be modeled by leaders’ actions each day. Leaders must understand that external influences can shape the culture. For example, there are competitive, technological, and regulatory pressures. Responses to them can have unintended consequences, including drifting from principles. This can increase the probability of an organizational failure. An organization needs to understand to what extent models impact behavior, decisions made by business leaders, and organizational culture. For example, boards of directors of public companies should ask questions if earnings per share (EPS) estimates are too consistent with analysts’ estimates. They should ask whether the firm is managing to models or to what is in the best long-term interests of the firm. Leaders get too much credit and too much blame. Leaders need to uphold the firm’s shared values—and that is a key component to leadership.13 But too little emphasis is given to the organizational elements that shape behavior or provide an environment for leadership or change. An organization’s structure, incentives, and values last longer and have more impact than those of individual leaders. Usually when there is a change or loss or failure there is a tendency to blame one thing or one person, when typically there are complex organizational cultural reasons. It is the duty of leaders and board members to examine what is responsible, not who is responsible.

and perfections of your fellow creatures, being as glad to see any of their good actions as your own. God is as well pleased with their well-doings as with yours. You ought to desire that everything that is wise and holy and good may be performed in as high a manner by other people as by yourself. Let this therefore be your only motive and incentive to all good actions, honest industry, and business – to do everything in as perfect and excellent a manner as you can, for this reason: because it is pleasing to God, who loves you and desires your perfection. When I am dead, my son, you will be master of all my estate, which will be a great deal more than the necessities of one family require. Therefore, as you are to be charitable to the souls of men and wish them the same

The companies with the highest returns on their technology investments did more than just buy technology; they invested in organizational capital to become digital organizations. Productivity studies at both the firm level and the establishment (or plant) level during the period 1995-2008 reveal that the firms that saw high returns on their technology investments were the same firms that adopted certain productivity-enhancing business practices. The literature points to incentive systems, training, and decentralized decision making as some of the practices most complementary to technology. Moreover, the right combinations of these practices are much more important than any of the individual practices. Copying any one practice may not be very difficult for a firm, but duplicating a competitor's success requires replicating a portfolio of interconnecting practices. Upsetting the balance in a company's particular combination of labor and capital investments, even slightly, can have large consequences for that company's output and productivity. As in a fine watch, the whole system may fail if even one small and seemingly unimportant piece is missing or flawed.

Many of these measures are regulatory. Property rights are often ignored, which allows local governments to seize valuable land from Chinese households to sell to developers. Expropriations were encouraged by the central government’s incentive system for local party officials. Those incentives, which often prioritized reported output growth above all else, also encouraged local governments to ignore pollution and environmental degradation to attract business investment. Ordinary Chinese had their wealth and health taken from them to benefit elites. Their living standards grew far less than China’s domestic production. The share of Chinese GDP consumed by Chinese households fell by 15 percentage points between the late 1980s and the bottom in 2010.

Over the past thirty years the orthodox view that the maximisation of shareholder value would lead to the strongest economic performance has come to dominate business theory and practice, in the US and UK in particular.42 But for most of capitalism’s history, and in many other countries, firms have not been organised primarily as vehicles for the short-term profit maximisation of footloose shareholders and the remuneration of their senior executives. Companies in Germany, Scandinavia and Japan, for example, are structured both in company law and corporate culture as institutions accountable to a wider set of stakeholders, including their employees, with long-term production and profitability their primary mission. They are equally capitalist, but their behaviour is different. Firms with this kind of model typically invest more in innovation than their counterparts focused on short-term shareholder value maximisation; their executives are paid smaller multiples of their average employees’ salaries; they tend to retain for investment a greater share of earnings relative to the payment of dividends; and their shares are held on average for longer by their owners. And the evidence suggests that while their short-term profitability may (in some cases) be lower, over the long term they tend to generate stronger growth.43 For public policy, this makes attention to corporate ownership, governance and managerial incentive structures a crucial field for the improvement of economic performance. In short, markets are not idealised abstractions, but concrete and differentiated outcomes arising from different circumstances.

acts of violence may be easier to explain through constructs like relative deprivation in aid programming, perceived injustice among ethnic groups or business networks, local and tribal rivalries, perverse economic incentives, and traditional modes of warfare (none of which are specific to counterinsurgency theory, or even to theories of conflict at all) rather than through a counterinsurgency lens.

Conway’s law tells us that we need to understand what software architecture is needed before we organize our teams, otherwise the communication paths and incentives in the organization will end up dictating the software architecture. As Michael Nygard says: “Team assignments are the first draft of the architecture.”7

The proliferation of state and local tax incentives designed to attract or retain business investment…has proven troublingly resistant to reform. Despite a growing recognition…that the competition over business incentives is at best a zero-sum game…the size of the incentive packages offered for large corporate facilities reaches ever-new heights…. The only consistent winners are the large businesses that can pit one jurisdiction against another for reduced tax burdens, while other taxpayers and citizens pay the costs in constrained government services and higher taxes.

I managed the team to a set of numbers that did not fully capture what I wanted. I wanted a great product that customers would love with high quality and on time—in that order. Unfortunately, the metrics that I set did not capture those priorities. At a basic level, metrics are incentives. By measuring quality, features, and schedule and discussing them at every staff meeting, my people focused intensely on those metrics to the exclusion of other goals. The metrics did not describe the real goals and I distracted the team as a result.

If there’s an opportunity to promote your business in a Facebook group or on your chosen traffic source, promote your opt-in incentive as well.

Mossfon subscribed to a Google-like paid search service called World-Check to help identify PEPs ["politically exposed person"] and criminals. It also, not for the first time, sent a letter to its professional clients requesting that they conduct a customer review. There was little follow-up. It was a question of incentives. When scandals sporadically came to light, they always seemed to resolve themselves without undue harm to the firm. Meanwhile, business was booming. In 2005, the firm tripled the number of shell companies it created on behalf of banks. By the end of the year, Mossfon had more than seventy thousand active companies. To do the necessary due diligence on all of them would have been prohibitively expensive, and sometimes impossible. In a business predicated on secrecy, no one wanted to produce the information.

Six Steps to Getting Started Right Now As we saw from the stories in Chapter 1, you don’t need a lot of money or special training to operate a business. You just need a product or service, a group of people who want to buy it, and a way to get paid. We’ll look at each of these things in more detail throughout the book, but you don’t have to wait to get started. Here are the six steps you need to take: 1. Decide on your product or service. 2. Set up a website, even a very basic one (you can get a free one from WordPress.org). 3. Develop an offer (an offer is distinct from a product or service; see Chapter 7 for help). 4. Ensure you have a way to get paid (get a free PayPal account to start). 5. Announce your offer to the world (see Chapter 9 for more on this). 6. Learn from steps 1 through 5, then repeat. Almost all microbusiness building follows this sequence of events. Of course, we’ll be discussing specifics as we go along, but it’s always better to start from where you are than to wait for everything to be perfect. If you have an existing business and are thinking about how to apply the concepts from this book, focus on either getting money in the bank or developing new products or services. These are the most important tasks of your business-not administration, maintenance, or anything else that takes time without creating wealth or value. If you’re not sure what to do, think about any of these ideas: Can you contact your customer list with a special offer or incentive? Can you introduce a new product or service to complement your existing portfolio? If you’re a coach or consultant, can you offer a special deal for clients who prepay? Is there a new way you can attract subscribers, clients, or customers? But one way or another . . . just do something.

truth is, you don’t need Super Bowl ads. Instead, as a company of one, you can be more effective by writing guest articles for websites and blogs, creating incentive programs for existing clients, or appearing in podcasts that cover your industry.

With that focus on quality and discipline, NI has been profitable nearly every year, a record that Buffett claimed has left others in the dust. The key has been having incentives in place to get the right employee behavior. And for that, you must think the business through. Munger

PayPal’s big challenge was to get new customers. They tried advertising. It was too expensive. They tried BD [business development] deals with big banks. Bureaucratic hilarity ensued. … the PayPal team reached an important conclusion: BD didn’t work. They needed organic, viral growth. They needed to give people money. So that’s what they did. New customers got $10 for signing up, and existing ones got $10 for referrals. Growth went exponential, and PayPal wound up paying $20 for each new customer. It felt like things were working and not working at the same time; 7 to 10 percent daily growth and 100 million users was good. No revenues and an exponentially growing cost structure were not. Things felt a little unstable. PayPal needed buzz so it could raise more capital and continue on. (Ultimately, this worked out. That does not mean it’s the best way to run a company. Indeed, it probably isn’t.)2 Thiel’s account captures both the desperation of those early days and the almost random experimentation the company resorted to in an effort to get PayPal off the ground. But in the end, the strategy worked. PayPal dramatically increased its base of consumers by incentivizing new sign-ups. Most important, the PayPal team realized that getting users to sign up wasn’t enough; they needed them to try the payment service, recognize its value to them, and become regular users. In other words, user commitment was more important than user acquisition. So PayPal designed the incentives to tip new customers into the ranks of active users. Not only did the incentive payments make joining PayPal feel riskless and attractive, they also virtually guaranteed that new users would start participating in transactions—if only to spend the $10 they’d been gifted in their accounts. PayPal’s explosive growth triggered a number of positive feedback loops. Once users experienced the convenience of PayPal, they often insisted on paying by this method when shopping online, thereby encouraging sellers to sign up. New users spread the word further, recommending PayPal to their friends. Sellers, in turn, began displaying PayPal logos on their product pages to inform buyers that they were prepared to honor this method of online payment. The sight of those logos informed more buyers of PayPal’s existence and encouraged them to sign up. PayPal also introduced a referral fee for sellers, incentivizing them to bring in still more sellers and buyers. Through these feedback loops, the PayPal network went to work on its own behalf—it served the needs of users (buyers and sellers) while spurring its own growth.

for a platform business, user commitment and active usage, not sign-ups or acquisitions, are the true indicators of customer adoption. That’s why platforms must attract users by structuring incentives for participation—preferably incentives that are organically connected to the interactions made possible by the platform. Traditionally, the marketing function was divorced from the product. In network businesses, marketing needs to be baked into the platform.

Product immediately after exercise insurance solutions No investment insurance purchase in a very simple Prostatis action, even though he is trained only exception in the industry. There are many new threats that can lure the unwary with remote media policy is clearly insufficient for your needs. It is important to do your due diligence and scientific evidence, ask yourself just before the market does not provide a sound purchasing decisions. This short article will help you, just accept, shoulders that decisive action must begin with knowledge. Those most critical factors giving a positive self basically want to cover the first edition. That's pretty strong earnings, unemployment, and some cannot Prostatis even be informed. Talk to your employer and give generally positive, they are not. Relevance Tab justified confidence that the business aspects, really, that this, after all, attractive to employers incentives, long-term employees, and where the only specialized services for industry and again the other for employees of highest quality that are more difficult problem to treat, made only more secure, since it is to find a person. Although the direction of transmission of buying Prostatis insurance on their own, more attention is considerable, certainly in the sense that the plan to "complete" and "renewable insurance." This suggests that other, as you continue to receive payment of costs should not be fully covered by commercial insurance. Not even know that the level of demand in the economy Although in good condition I, and the company has taken the right path, and then joined a vague clause to complete the plan in principle and in its way through, you can also apply safeguards Generally they produce, the plan rescission period is 10 days during the working sets, make sure it's perfect, then throw the cards, if not immediately. The scenario is especially the Prostatis fact that it contains the option to change the terms and other demanding applications. Currently, for many years a large number of hits includes hands. As "absolutely certain legal requirements" specialized insurance services for investment in more selective inside to be taken, especially in the stop position of education on the basis of a different plan that incorporates the experience, regardless evaluation or situations require the exercise includes products and services for the same price evaluation face to face selling. Similarly, principles and manipulated so as the experience of many destructive aspect of the current market containing the entire industry. An insurance company to a higher potential, to ensure that purchasers or plans worth more to feel a little pressure, the result is inevitable that insurance is available against people who have contact to practice for a few days . Basically it is to maintain the power to print money to unrealistic levels.

The rich will never be taxed. More and more often we see governments use the tax laws to provide incentives to business owners and investors to create jobs and housing. These incentives reduce the taxes of the rich. So the only place for the government to drive tax revenue is from the middle class.

She looked out the taxi window at the picturesque Creole cottages and brick Spanish Colonial houses on the way back to the bakery. Piper could understand why New Orleans was an attractive location for filming. The culturally rich neighborhoods and diverse locations, from bayou to big city, provided vivid backdrops. There were willing extras of all shapes, sizes, and ethnicities available, as well as state-of-the-art sound stages and plenty of skilled crew members. Piper also knew that Louisiana offered attractive tax incentives to the film industry to bring in business to New Orleans. The city was working hard to earn the moniker "Hollywood of the South.

The most popular Foursquare feature is a competitive challenge called The Mayor. The rules read: “If you’ve got more check-ins than anyone else at a particular place, we deem you ‘The Mayor’ of that place. But once someone else comes along who has checked in more times than you, they then steal the ‘Mayor’ title back from you.” As soon as you become mayor, Foursquare sends an announcement to your friends congratulating you. Even better, some bars and restaurants have set up special deals for whoever happens to be mayor at any given time. The Marsh Café in San Francisco, for example, lets the current mayor drink for free. Of course, this is also a smart move on the part of the café—players have extra incentive to bring their friends there nightly to try to achieve or hold on to the mayor status, boosting business throughout the week. It’s also a good example of how traditional brick-and-mortar companies might be able to augment their services by more actively taking part in this popular reality-based game. Currently, hundreds of venues—from the Sacramento Zoo to a Wendy’s fast-food restaurant in the student union at the University of North Carolina Charlotte—offer deals or freebies for Foursquare players. Why do people love the idea of becoming the mayor? Because trying to become mayor of your favorite city spots gives you a chance to keep doing something you already love, but do it more. It gives you an excuse to spend as much time as possible at the places that make you happiest. And when you notice someone else vying for your mayor status, you get an instant friendly rival, motivating you to visit your favorite places more often, the same way a Nike+ challenger pushes you to run faster and longer.

the psychological structures and incentive systems that we are trying to help the client change affect us as well.

The second footprint expansion issue is a volume incentive—you want to incent your customers to give you more of their business. You get the behavior that you reward, not what you desire (Kerr, 2008); if you want a customer to give you more of their business, you need to reward them for doing so.

If all you do is to reduce price, then all you do is not get paid a lot of money. As you think about expanding footprint in a customer's account, you want to consider how you can create barriers to switching from your company to someone else's (pre-payment, rebates, exclusivity, and embeddedness), how you can know more about the customer's business than others (embeddedness and exclusivity), and how you can incent the customer to give you more work (volume incentives in the form of volume discounts and rebates).

Promote Ownership Q: Do you offer any compensation to your team in the form of company “ownership”—including a share of profits or growth? Q: Do you regularly communicate to your team your short-term goals and your long-term goals for the business? Q: Is there an incentive (or a barrier) for employees to improve or fix areas of the business outside of their own department or responsibilities?

Convention also dictates that ‘big is beautiful’, but every time one of our ventures gets too big we divide it up into smaller units. I go to the deputy managing director, the deputy sales director and the deputy marketing director and say, ‘Congratulations. You’re now the MD, the sales director and the marketing director of a new company.’ Each time we’ve done this, the people involved haven’t had much more work to do, but necessarily they have a greater incentive to perform and a greater zest for their work.

Pierce did not let people get in the way of his pursuit of ideas,” Mayo adds. “He did not compromise because it would make people feel good. He did his thing because he felt it was necessary to accomplish the development of ideas the way he wanted. He was excellent at that. And I loved those research people for that. They weren’t about making people feel good. They were about motivating people—not to do the conventional thing, but to do the unconventional thing.” To follow the progress of business now, Mayo adds, is to become accustomed to watching successful technology companies offer new engineers rich incentives for their work.

Identifying Cultural Norms The following domains are areas in which cultural norms may vary significantly from company to company. Transitioning leaders should use this checklist to help them figure out how things really work in the organizations they’re joining. Influence. How do people get support for critical initiatives? Is it more important to have the support of a patron within the senior team, or affirmation from your peers and direct reports that your idea is a good one? Meetings. Are meetings filled with dialogue on hard issues, or are they simply forums for publicly ratifying agreements that have been reached in private? Execution. When it comes time to get things done, which matters more—a deep understanding of processes or knowing the right people? Conflict. Can people talk openly about difficult issues without fear of retribution? Or do they avoid conflict—or, even worse, push it to lower levels, where it can wreak havoc? Recognition. Does the company promote stars, rewarding those who visibly and vocally drive business initiatives? Or does it encourage team players, rewarding those who lead authoritatively but quietly and collaboratively? Ends versus means. Are there any restrictions on how you achieve results? Does the organization have a well-defined, well-communicated set of values that is reinforced through positive and negative incentives?

Raising from Series A/B firms for a seed Bringing a Series A/B firm in for a seed round is risky business. They’ll want to talk to you to get an early look and learn about what you’re up to. But don’t get too excited! In fact, I’d recommend avoiding those conversations entirely. Whatever capital they commit will be trivial relative to their total balance sheet. No Series A/B firm is serious unless they lead your A or B, and, if for some reason they decide not to do so, you’re screwed because that’s a red flag for other investors. This is called “signaling risk.” Basically, by investing in your seed, they intend to block out others from your next round. It’s a win-win for them because they either lead your next round from a privileged position or, they pass and you’re the one who’s screwed as a founder. So, your incentives are completely misaligned! You may have heard success stories, but that’s a sampling bias — you’ll rarely hear about the companies that do not get the follow-on term sheet. Note: A fund investing in your company at the seed stage is completely irrelevant to their willingness to write a check to lead your Series A or B. The only thing that determines their willingness to invest is your traction and momentum. Letting them in makes them no more willing to invest, and anyone who tries to convince you otherwise is deceiving you. There might be relationship benefits, but you can build on the relationship without letting them on your cap table!

The Joy of Self-Care It can be a joy to take care of yourself and you deserve it. You already know that you deserve to take a shower and brush your teeth. In fact, more self-care is deserved than that. You need to pay attention to your body, mind, and spirit. If you take time out every day to take care of yourself, you will be more productive, a brighter light and a support in the world. Gradual Morning Movement Get up early enough to have time to do a routine in the morning. At least, take a moment to rest before getting out of bed. Grab a couple of takes. Allow yourself in bed to wake up. Perform a few simple laps. Make sure you have time to eat a good breakfast when you get out of bed, clean and floss your teeth, and go out for a breath of fresh air before getting on with your busy day. Enjoying yourself before you prepare your day is good for you. It is said you are blocked from enlightened bliss by discontent and too much seriousness and are signals that you are attached to your physical body and the world's cares. Lightening is healthy for body, mind, and spirit all around. You can still participate in the world with more lightness and non-attachment to the results, and care about the state of affairs. In other words, do your world's best job without incentive aspirations. Let the job be where you find happiness. Let self-care be the same. Please take care of yourself. Eating the Rainbow When shopping for food, pick up food in all the rainbow colors. Look for recipes online if there's a food of a certain color and it's new to you. Ask friends and colleagues if they have any season and swap favorite recipes. Please try new things and see how many different colors in one day you can eat. For the Good of All You help yourself and those around you when you take care of yourself. You are a light for others by being healthy, and a model of how good health might look and feel. As you get healthy, others will wonder how you've done that. Taking pleasure in taking care of yourself makes it possible for others to see that it is possible and feel good doing the same thing. And, you have the energy and ability to give back when you're healthy.

Here’s how it worked: The federal government would cap the amount of greenhouse gas companies could emit, leaving it up to each company to figure out how to hit those targets. Companies exceeding their limit would pay a penalty. Companies that stayed below their limit could sell their unused pollution “credits” to less-efficient businesses. By setting a price on pollution and creating a market for environmentally friendly behavior, a cap-and-trade approach gave corporations an incentive to develop and adopt the latest green technologies; and with each technological advance, the government could lower the caps even further, encouraging a steady and virtuous cycle of innovation.

However, the point here is that incentives are a necessary but insufficient source of influence required to modify behaviors.

Here are a few different types of emails you can send: Common FAQs – An email that answers repeat questions you get from readers and subscribers Affiliate case study – An email that details the results from taking a course or using a tool that you’re an affiliate for Teaser to an existing post – An email that links to pillar or cornerstone pieces on your blog Tools and resources – An email that shares your favorite tool collection The Start Here – An email that links to your most important resources Break the myths – An email that lays out myths that your subscribers may think are true Behind the scenes – An email that gives an insiders’ peek into what’s going on with your business Personal story – An email that gives an insiders’ peek into your struggles or backstory One-click survey – An email that asks a simple question to segment subscribers or allows them to choose their own email journey Survey or How can I help you? – An email asking for responses or providing an offer to help Postpurchase welcome email – An email sent immediately after purchase to buyers of your offer Unexpected incentive email – A simple cheat sheet, guide, or PDF that subscribers were not expecting Favorite thing – A collection of your favorite books/blogs/stock photo sites, etc. I have used every one of these emails in my email marketing mix. Doing so breaks up the monotony of sending the same style of email each week, and each of these emails feeds your marketing goals differently as well.

we need simply look at how capitalism changed after the idea of shareholder supremacy took over—which only happened in the final decades of the twentieth century. Prior to the introduction of the shareholder primacy theory, the way business operated in the United States looked quite different. “By the middle of the 20th century,” said Cornell corporate law professor Lynn Stout in the documentary series Explained, “the American public corporation was proving itself one of the most effective and powerful and beneficial organizations in the world.” Companies of that era allowed for average Americans, not just the wealthiest, to share in the investment opportunities and enjoy good returns. Most important, “executives and directors viewed themselves as stewards or trustees of great public institutions that were supposed to serve not just the shareholders, but also bondholders, suppliers, employees and the community.” It was only after Friedman’s 1970 article that executives and directors started to see themselves as responsible to their “owners,” the shareholders, and not stewards of something bigger. The more that idea took hold in the 1980s and ’90s, the more incentive structures inside public companies and banks themselves became excessively focused on shorter-and-shorter-term gains to the benefit of fewer and fewer people. It’s during this time that the annual round of mass layoffs to meet arbitrary projections became an accepted and common strategy for the first time. Prior to the 1980s, such a practice simply didn’t exist. It was common for people to work a practical lifetime for one company. The company took care of them and they took care of the company. Trust, pride and loyalty flowed in both directions. And at the end of their careers these long-time employees would get their proverbial gold watch. I don’t think getting a gold watch is even a thing anymore. These days, we either leave or are asked to leave long before we would ever earn one.

for survival. However, as the business grows and new people join the firm, it’s impossible to know everyone’s name, let alone to have strong relationships with everyone. The kind of super-direct challenges that are easy when people know each other well become difficult. Not wanting to lose the friendly culture of the early days, many hesitate to speak up when they see problems, backing off of Challenge Directly and retreating to Ruinous Empathy. Because Obnoxious Aggression is more effective than Ruinous Empathy, that kind of behavior has an advantage; people who behave badly begin to win, rising in the company. When confronted with a powerful jerk, many people retreat to Manipulative Insincerity, more out of instinctive self-protectiveness than intentional wrongdoing. In this kind of environment, there’s an incentive to retreat to Manipulative Insincerity in front of those who are more senior to them, and resort to Obnoxious Aggression with those who are less powerful. The culture becomes toxic—many kissing up and

Conway’s law tells us that we need to understand what software architecture is needed before we organize our teams, otherwise the communication paths and incentives in the organization will end up dictating the software architecture.

And here it is: the more you share profits with your associates—whether it’s in salaries or incentives or bonuses or stock discounts—the more profit will accrue to the company. Why? Because the way management treats the associates is exactly how the associates will then treat the customers. And if the associates treat the customers well, the customers will return again and again, and that is where the real profit in this business lies,

If one felt successful, there’d be so little incentive to be successful.