Bookwield

Prompts · Managing people

Design a bonus or commission plan that doesn't get gamed

you're designing or replacing a bonus plan, the last one got gamed, and you need something that rewards the right work.

Built on

Freakonomics
Steven D. Levitt & Stephen J. Dubner · 2006

Supplies the warning: people optimize whatever you measure, including by cheating. The Chicago teachers changed answer sheets once bonuses rode on test scores.

Drive
Daniel H. Pink · 2009

Supplies the counterweight: if-then rewards narrow focus on creative work. Fair base pay, autonomy, and after-the-fact

The prompt

My situation: [describe the team and the kind of work they do, what the last incentive plan rewarded, and what went wrong] Use Freakonomics by Steven D. Levitt & Stephen J. Dubner (2006) and Drive by Daniel H. Pink (2009) to help. Recall any details from the whole book that help, including names, numbers, scenes, or cases that are not the most famous chapter titles.

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