HBR Blog: When Your Incentive System Backfires

userpic-841-100x100The author goes to an Asian city and tries to get on the bus.  The bus keeps passing by.  Why?  Because the bus driver’s bonus is connected to being on time, not servicing customers, resulting in a behavior that is opposite to that which would be optimal.  This model is the focus of the article.  Conclusion: be careful about identifying what’s important and how you drive participation. Continue reading