behavioral economics

Management per objective: the art of stupid

Here is a video I’d like to share with you. It is a splendid introduction to new ways of managing companies by Daniel Pink at a Ted conference. It sheds a positive light to how to change – may be not the world – but at least the place where we all spend 70% of our awaken time, the office. It applies wonderfully to the little sector we speak from, social enterprises.

What’s the pitch? Basically that management per objectives and incentives are making people dumber, less productive, because it inhibits their creativity. What sort of statement is that? Some pinky wishful thinking? Not at all. It is actually based on science, and a new specific branch to economics, the first real scientific one to my opinion, behavioral economics, a discipline in which economic assumptions are actually being tested, quite a blow in the economic world where ideologies are hidden behind non-experimented complex equations on how economic agents should behave and react, and where prizes are given to authors that would explain of human nature should be changed to comply with their obnoxious theories. And by the way, it is the MIT that is the leader in that new exciting domain.