Fixing Dysfunctional Behaviors in Organizations

 

In this episode, our guest Steve Kerr shares insights from his book on reward systems. He explains how flawed reward systems can lead to irrational behaviors in employees similar to B.F. Skinner's 'blaming the rat' theory. Kerr discusses the importance of effective measurement and reward systems in organizations and provides practical steps to realign them for better outcomes. He uses analogies from the healthcare system and historical military examples to highlight the pervasive issues and solutions for leadership in various contexts. This discussion is crucial for anyone involved in organizational transformation and leadership.

 

00:00 Introduction to Reward Systems

00:52 Meet Steve Kerr: Leadership and Legacy

01:28 The Folly of Rewarding A While Hoping for B

01:49 Three-Step Process to Realign Reward Systems

02:38 Measurement and Performance: Key Insights

04:31 Healthcare System Example: Misaligned Rewards

08:08 Stretch Goals and Innovation Challenges

12:33 Military Analogy: World War II vs. Vietnam

14:28 Organizational Dynamics and Leadership Challenges

16:04 Effective Performance Reviews

20:22 Creating a Candid Culture

22:07 Conclusion and Next Episode

 

On the Folly of Rewarding A,While Hoping for B

https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Motivation/Kerr_Folly_of_rewarding_A_while_hoping_for_B.pdf

 

Aidan McCullen, Steve Kerr, reward systems, employee behavior, BF Skinner, dysfunctional behaviors, fixing reward systems, CEO memo, leadership development, GE, Goldman Sachs, ultimate rewards, boundaryless organization, performance measurement, innovative culture, healthcare system, preventive care, stretch goals, Jack Welch, candid culture