Fixing Dysfunctional Behaviors in Organizations

In this episode, our guest Steve Kerr shares insights from his book on reward systems. He explains how flawed reward systems can lead to irrational behaviors in employees similar to B.F. Skinner’s ‘blaming the rat’ theory. Kerr discusses the importance of effective measurement and reward systems in organizations and provides practical steps to realign them for better outcomes. He uses analogies from the healthcare system and historical military examples to highlight the pervasive issues and solutions for leadership in various contexts. This discussion is crucial for anyone involved in organizational transformation and leadership.

00:00 Introduction to Reward Systems

00:52 Meet Steve Kerr: Leadership and Legacy

01:28 The Folly of Rewarding A While Hoping for B

01:49 Three-Step Process to Realign Reward Systems

02:38 Measurement and Performance: Key Insights

04:31 Healthcare System Example: Misaligned Rewards

08:08 Stretch Goals and Innovation Challenges

12:33 Military Analogy: World War II vs. Vietnam

14:28 Organizational Dynamics and Leadership Challenges

16:04 Effective Performance Reviews

20:22 Creating a Candid Culture

22:07 Conclusion and Next Episode

On the Folly of Rewarding A,While Hoping for B

https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Motivation/Kerr_Folly_of_rewarding_A_while_hoping_for_B.pdf

Aidan McCullen, Steve Kerr, reward systems, employee behavior, BF Skinner, dysfunctional behaviors, fixing reward systems, CEO memo, leadership development, GE, Goldman Sachs, ultimate rewards, boundaryless organization, performance measurement, innovative culture, healthcare system, preventive care, stretch goals, Jack Welch, candid culture

This week’s Thursday Thought explores the ongoing battle for AI dominance among tech giants like OpenAI, Anthropic, X, Google, and Microsoft, drawing parallels to historic format wars that have shaped various industries. From the iconic VHS vs. Betamax struggle to the intense competition between gaming consoles like PlayStation, Xbox, and Nintendo, and the enduring rivalry between iPhone and Android, these conflicts reveal a recurring pattern. As AI companies follow similar paths, it’s clear that, while technology evolves, the strategic dynamics remain strikingly similar.

In a world of instant gratification and AI shortcuts, are we losing sight of the value of struggle? 🤔 Join us as we explore the importance of embracing challenges and the deeper connection forged through effort and perseverance. From personal anecdotes in sports to the insights of Naomi S. Baron, Albert Camus, Andrew Huberman, and Yuval Noah Harari, we uncover the transformative power of struggle in learning, creativity, and personal growth. 

Discover why “passing through the desert of boredom” is crucial for laying down neural pathways and achieving meaningful results. We’ll also delve into the impact of AI on education and organizations, and how bypassing the struggle can lead to a sense of detachment and diminished ownership. Don’t miss this thought-provoking exploration of why struggle is not just essential for success, but also for finding deeper meaning in our achievements. 💡 

🔗 Check out the full article here: https://thethursdaythought.substack.com/publish/posts/detail/151286406?referrer=%2Fp%2Fthe-ai-dilemma-struggle-or-shortcuts

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https://www.thereinventionsummit.com