Skin in the Game

Jul 6, 2020 8 Comments

while there’s no “perfect” — or guaranteed one size fits most — solution, I’m curious how different teams arrive at big decisions.

there seem to be underlying — and sometimes unspoken — guiding leadership principles that drive the path of pursuing high- vs low-risk projects.

Incentives for leadership seems to point to staffing 1 large 10x ROI project over 5 small 2x ROI initiatives.

sometimes big bets pay off and sometimes companies only taking small bets die off.

the risk vs reward, however, seems to be assymetric for ICs vs Leaders:

—big bet—
reward — more $$$, leaders promoted
risk — less $$$, leaders & staff fired

—no bet—
reward — similar $$$, staff hired
risk — less $$$, no promo

what am i missing?

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