Bad Incentives

Effective performance management requires lining up incentives with desired outcomes. In practice, this is impossible — the best you can do is pick your problems.

Today’s example, from the New York Times, “Paying Doctors to Ignore Patients“:

“…the best way for a doctor to make money in his practice is not to spend time with patients but to use equipment as much as possible. That means moving the maximum number of patients through the practice, and spending the minimum amount of time with each one. “