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
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