In his new book,  Mixed Signals: How Incentives Really Work,  Uri Gneezy explains why leaders often create incentives that are misaligned with their organization’s goals.

Gneezy, the Epstein/Atkinson Chair in Management Leadership at UC San Diego’s Rady School of Management, is one of the world’s leading experts in behavioral economics, and his insights have become a staple in courses around the world. He teaches managers how to be incentive-smart—how to avoid mixed signals and design incentives that are simple, effective, and ethical.

Together with Martin Reeves, Chairman of BCG Henderson Institute, Gneezy discusses how incentives work, and how we can apply them in the workplace to change habits and spark innovation—he explains why, counterintuitively, successful organizations and initiatives may actually have a greater need to examine their incentives than unsuccessful ones.

Key topics discussed:

01:11 | How incentives send signals

02:08 | Incentives in the workplace

09:14 | Incentivizing innovation

12:29 | Understanding the use and limitation of incentives

18:22 | Changing habits