Align incentives to encourage longterm thinking and behavior from "summary" of Winning Now, Winning Later by David M. Cote
Aligning incentives to encourage long-term thinking and behavior is critical for the success of any organization. When employees are rewarded based on short-term results, they are more likely to focus on immediate gains rather than on sustainable growth. This can lead to decisions that prioritize short-term profits over long-term value creation. In order to foster a culture of long-term thinking, companies must design their incentive structures to reward behaviors that support sustainable growth. This means aligning incentives with the company's long-term goals and values, rather than just focusing on short-term financial metrics. One way to achieve this is by incorporating long-term performance metrics into the incen...
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