Day 6 (15m)
Leverage Points 5-4
#5: Rules: Incentives, punishments, constraints
Why does the government offer rebates for buying electric cars? Does it make you more likely to buy one? Why is there a shot clock in basketball? Would teams play differently without one (and would you want to watch it)? Why do libraries have late fees? Are you more likely to return your book on time? All these are examples of rules to adjust the behavior of systems.
The below clip talks about 3 types of entrepreneurs: Productive, Non-productive, and Destructive. As you listen, consider:
What does an entrepreneur want? Are the desires and motives of the 3 types of entrepreneurs significantly different?
What types of rules do you think would lead someone to become a productive entrepreneur? What about destructive?
Some rules reward 'good' behavior, others punish 'bad' behavior, but the best ones inspire 'creative' behavior toward the benefit of the system.
What are a few specific rule changes you could make to help with your problem? How do you imagine your rule change would alter the behavior of the participants in the system?
#4: Self-Organization: The power to add, change, or evolve system structure
Systems that are empowered to adapt are quicker to improve and much more resilient to catastrophic failures. Think about how the U.S. Constitution has a built-in method of making amendments.