Too many organizations—not just companies, but governments and nonprofits as well—still operate from assumptions about human potential and individual performance that are outdated, unexamined, and rooted more in folklore than in science. They continue to pursue practices such as short-term incentive plans and pay-for-performance schemes in the face of mounting evidence that such measures usually don’t work and often do harm. Worse, these practices have infiltrated our schools, where we ply our future workforce with iPods, cash, and pizza coupons to “incentivize” them to learn. Something has
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