Leadership says collaboration. The goal structure rewards individual performance. Leadership says efficiency. The bonus goes to whoever bills the most hours. When words and incentives conflict, incentives win. Every time.

In this episode, I examine the incentive problem: the disconnect between what organizations say they value and what their goal structures actually reward. I walk through three common patterns (the sales goal problem, the utilization trap, and the collaboration paradox) and explain why each one drives the exact opposite behavior leadership claims to want.

I also introduce a three-question goal audit to identify misalignment and a monthly check-in framework to make sure goals stay relevant throughout the year.

If your organization keeps announcing changes but nothing actually changes, this episode will show you why.

Key Concepts:

* The Incentive Problem: When leadership says one thing but the goal structure rewards something different, people follow the incentives.

* The Sales Goal Problem: Revenue targets that do not distinguish between existing and new clients discourage business development.

* The Utilization Trap: Measuring hours billed punishes efficiency and rewards professionals who slow down.

* The Collaboration Paradox: Individual goals make teamwork irrational, no matter how many decks leadership shows.

The Three-Question Goal Audit:

* What behavior does this goal actually incentivize?

* Is that the behavior we need to achieve our stated purpose and values?

* What would we need to change about the goal structure to align incentives with desired outcomes?

Monthly Check-In Framework:

* Are we tracking progress toward goals or just reacting to fires?

* Are you clear on what success looks like this month?

* Are we rewarding the right behaviors as they happen?

Bottom Line: If you want different behaviors, you need different goals. Run the three-question audit. Be honest about what you’re actually rewarding. Then commit to fixing it.

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