How to design incentives that work?

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Incentives are an important tool for motivating people to take action. They can be financial, like a bonus, or non-financial, like public recognition.

When designing incentives, it is important to think about what you want people to do and what will motivate them.

There is no single answer to this question as it depends on the specific situation and context. However, answering the following questions can certainly help you clarify the whole incentives designing procecss —

• What is the goal of the incentive?
• Who is the target audience?
• What incentives are available?
• What is motivating for the target audience?
• How the incentives will be delivered?
• What are the costs and benefits of the incentive?
• How will the incentive be tracked and evaluated?

Warren buffet’s business partner, Charlie Munger, once said —

“Show me the incentive and I will show you the outcome”