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Realizing how much incentives matter. Everything around you is driven by incentives: Coworkers, your boss, customers, personal relationships. More importantly,
by WnZ39p0Dgydaz1 7y ago
Realizing how much incentives matter. Everything around you is driven by incentives: Coworkers, your boss, customers, personal relationships. More importantly, everything is driven by "personal incentives" more so than "business incentives", and those two aren't usually aligned. For example, if you are talking to a potential customer (who may represent a company), it's invaluable to understand what incentives drive this person (not company!). What is he or she trying to get out of working with you? A promotion? Recognition from his boss? A story to tell his family at dinner? What are his current life and career goals and how does that align with choosing you? What is his decision making progress and why? And so on. The same can be applied to your coworkers, or anyone else you're working with. Even to you friends and family, whose incentives may to be simply have a good time, feel loved and accepted, or have someone to listen.
There are rarely true "irrational" decisions. If a decision looks irrational to you, it's most likely because you don't truly understand the incentives driving that person.