The power that incentives and disincentives have on the actions of others cannot be overstated. Munger says this should be obvious but so many people don’t understand the how important incentives are for shaping people’s motivation to complete a task.
Incentives and disincentives are extremely important in changing behavior.
Just follow Benjamin Franklin’s Maxim:
“If you would persuade, appeal to interest and not to reason”
“Never think about something else when you should be thinking about the power of incentives.”
“Incentives will almost always trump any moral duty”
‘The most important rule in management “Get the incentives right”‘
“Bad behavior is intensely habit forming when it is rewarded.”
These were some quotes from Charlie Munger on Reward and Punishment Super Response…