Incentivizing Innovation

Far too often, organizations don’t align their goals with people’s incentives. And as a result, the organization doesn’t maximize its human capital.

People are paid an hourly or annual salary. They are expected to work a minimum number of hours. They are told to do what’s always been done. They aren’t encouraged to improve inefficiencies, go the extra mile, or effect change. And more importantly, they aren’t rewarded for doing so.

There’s a shortage of innovation? There’s stagnation?

Don’t blame the team. It’s not the people’s fault. Why should they do more than the bare minimum? Why shouldn’t they go through the motions? In fact, their security and livelihood may even depend on maintaining the status quo.

Organizations must incentivize their people. They must welcome new ideas and positive change, and reward those who are responsible.

Originally published at spencerkier.com on February 25, 2019.