Think Better · 55 sec
Incentives Shape Behavior
People respond to how success is measured and rewarded.
The useful idea
- Understand
A target directs attention toward the behavior that earns recognition or reward.
- Connect
Poorly designed measures can improve a metric while damaging the real objective.
- Apply
Speed-only targets may reduce quality, while sales-only targets may encourage unsuitable recommendations.
Why this matters
Metrics are not neutral when people can change behavior to optimize them.
Try this
Ask what unintended behavior a metric could create.
Test your recall
Which action best applies “Incentives Shape Behavior”?
- Ask what unintended behavior a metric could create. — correct
- Write down what evidence would make you reconsider.
- Change the two most uncertain assumptions across plausible ranges and note where your preferred option switches.
Metrics are not neutral when people can change behavior to optimize them.