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Perspectives on Organizational Architecture. “Fundamental Equation of Organizations” Outcomes = Incentives + Info + People BSZ Version: = Decision Rights + Incentives + Evaluation. Incentives 101. Incentives Not So Simple. Incentives Matter – Always & Everywhere For good & bad

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slide2

“Fundamental Equation of Organizations”

Outcomes = Incentives + Info + People

BSZ Version: = Decision Rights + Incentives + Evaluation

slide5

Incentives Matter –

Always & Everywhere

    • For good & bad
      • Effort, info, risk, ethics, conflicts, …
      • Even when we don’t recognize their influences
incentives beyond
Incentives Beyond $

Phil Bengston noted as a key feature of Lombardi‟s understanding of player motivation “the player produces for himself and the team as an extension of himself ... basic appeal to individual pride and performance.” He balanced the need for individuals to subjugate themselves to the needs of the team while continuing to recognize the importance of individual.

slide9

Drucker observed that executives “differ widely in their personalities, strengths, weaknesses, values, and beliefs,” and that “all they have in common is they get the right things done.” The “right things” include using time efficiently, focusing on contribution, making strengths productive, doing first things first, and making effective decisions. These characteristics and abilities correspond well to the execution-related skills that the study has found to matter the most.