What Happens When Decision-Makers Are Rewarded for the Wrong Things?
What Happens When Decision-Makers Are Rewarded for the Wrong Things? Incentives When the scoreboard is off, even smart people can make damaging choices. Framing: What happens when the people making decisions are rewarded for the wrong things? Usually, the system starts producing behavior that looks successful on paper but weakens real outcomes over time. This question matters because incentives do not just influence effort—they shape judgment, priorities, and culture. When rewards are misaligned, people often stop optimizing for what is right or durable and start optimizing for what is visible, measurable, and personally beneficial. Why Incentives Matter More Than Intentions Incentives are like the rails under a train. People may believe they are choosing freely, but the track still determines where they are most likely to go. That is why rewards matter so much in any organization. People pay close attention to what gets praised, promoted, measured, and paid. A company may talk about l...