All of these problems are further exaggerated by larger the incentives. When there are huge amounts of money at stake, then badly set goals can distort human behaviour even more.
So, use these warnings as ways to set better goals, and be careful of unintended consequences.
Ordonez et al. (2009) conclude by saying:
“Rather than dispensing goal setting as a benign, over-the-counter treatment for students of management, experts need to conceptualize goal setting as a prescription-strength medication that requires careful dosing, consideration of harmful side effects, and close supervision.”
With that warning in mind, here are some new rules of goal-setting
Goals should be somewhat abstract.
Goals should be set with an eye on the long-term.
Goals should be relatively limited in number.
Goals should not be too hard to achieve.
(Oh, and unless they’ve ordered them, never ship bricks.)
