This link has been bookmarked by 5 people . It was first bookmarked on 08 Feb 2009, by Bertrand Duperrin.
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10 Jun 09
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25 Mar 09
avivajazz jazzavivaIncentive systems rewarded people by quantity, not quality, of loans and leases. People did what they were paid to do—make (bad) loans, take excessive risks, package and resell worthless paper, leverage up the balance sheet, and so forth.
financial crisis economic collapse incentives compensation values ethics corporate culture rewards reward systems
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20 Feb 09
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08 Feb 09
ken .Jeffrey Pfeffer - on history is boring and instruments of wealth destruction - "Lack of focus on understanding failure - Over-reliance on compensation as a management tool - Omnipresent managerial hubris" - follow the money -> "People did what they were p
belief business cognitive confidence failure finance greek history learning management memory money motivation psychology systems
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Bertrand DuperrinThere are many, many instances of financial incentives driving behavior that then causes organizations major problems. This fact raises the question of why no one ever seems to learn anything—which explains why the current situation with home mortgages looks remarkably like the case of making bad loans to countries that couldn’t repay them about 25 years ago and a little like the savings and loan mess of the late 1980s.
I can point to three key reasons why collectively we seem to learn nothing from past mistakes:-
Lack of focus on understanding failure.
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Over-reliance on compensation as a management tool.
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Omnipresent managerial hubris.
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