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Incentives: The Evil Hat Liz Keogh liz@lunivore.com @lunivore - PowerPoint PPT Presentation

Learning and Perverse Incentives: The Evil Hat Liz Keogh liz@lunivore.com @lunivore Perverse incentives are a common problem. We think more about solutions than we do about the system the solutions create. We can see systems better from


  1. Learning and Perverse Incentives: The Evil Hat Liz Keogh liz@lunivore.com @lunivore

  2. Perverse incentives are a common problem.

  3. We think more about solutions than we do about the system the solutions create.

  4. We can see systems better from outside the system.

  5. Create a system, not a solution.

  6. Effect Reinforces Action New effect

  7. Effect Limits Action New effect

  8. Effect Delay Action New effect

  9. Wanted Look effect Causes forward to Action New effect

  10. Unwanted Avoid effect Should limit Action New effect

  11. Unwanted Avoid effect Actually causes Action Unexpected effect

  12. Growing cost Avoid of change

  13. Cost Time

  14. Growing cost of change Actually Avoid causes Change costs Get it right more up front

  15. Excellence Time

  16. Excellence Time

  17. Excellence What went wrong? Time

  18. Think we’re right Feel really good! Look for validation

  19. Think we’re right Find out we’re not Boo!

  20. N J $

  21. J J J L J J J J

  22. Excellence Time

  23. Excellence Time

  24. between over groups time

  25. Excellence Time

  26. Improvement Reinforces Action New effect

  27. Metric, reward, avoidance of punishment Reinforces Action New effect

  28. Appearance Reality

  29. Appearance Reality Improvement

  30. Appearance Reality Metric

  31. Improvement Metric $ Delayed feedback Quicker feedback Easier to achieve Hard to measure Hard to achieve Valued as if it is the improvement

  32. Self- actualisation Esteem Love and belonging Safety Physiological

  33. ?

  34. This is what I learnt today. This is what I hope to learn tomorrow. Can anyone help me find out… ?

  35. Excellence Time

  36. Liz Keogh liz@lunivore.com @lunivore

  37.  The Fifth Discipline, Peter M. Senge  Waltzing with Bears, Tom de Marco & Timothy Lister  Managing the Design Factory, Don Reinertsen  Six Thinking Hats, Edward de Bono  Snakes in Suits, Paul Babiak & Robert D. Hare  The Goal, Eliyahu M. Goldratt

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