Perspectives on Organizational Architecture

“Fundamental Equation of Organizations”

Outcomes = Incentives + Info + People

BSZ Version: = Decision Rights + Incentives + Evaluation

Incentives 101Incentives 101

Incentives Not So Simple Incentives Not So Simple

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.

Broadening Concept of Broadening Concept of IncentivesIncentives

Difficult OA IssuesDifficult OA Issues

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.