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Master the Art of Business - by Josh Kaufman, founder of PersonalMBA.com

Incentive-Caused Bias

This is a preview of a concept contained in The Personal MBA by Josh Kaufman, a book that will help you master the fundamentals of business, hone your business instincts, and save a fortune in tuition. The Personal MBA distills the most powerful principles of business and delivers them quickly and concisely. Order your copy now…

What is “Incentive-Caused Bias”?

“It is difficult to get a man to understand something when his salary depends upon his not understanding it.” — Upton Sinclair, Pulitzer Prize–winning author of The Jungle

Key Points:

  • Incentive-Caused Bias says that people with a vested interest in something will tend to guide you in the direction of their interest.
  • Incentives influence the way people act. Change the incentive, and you’ll change the behavior.
  • Incentives are tricky because they interact with our Perceptual Control systems.
  • Incentives can be useful if used properly, but caution is in order. Make sure that your interests match those of the people that receive the incentive.

Questions for Consideration:

  • Do you have any incentives that may bias your decisions or actions?
  • How may incentives alter the behavior or actions of the people you work with?

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True leaders aren’t made by business schools – they make themselves, seeking out the knowledge, skills, and experiences they need to succeed. Read this book and you will learn in one week the principles it takes most business professionals a lifetime to master. Buy The Personal MBA by Josh Kaufman now.