Scientific Definition
Lower headline cost masks coordination failures, IP leakage, and quality erosion.
Plain-English Definition
Lower headline cost masks coordination failures, IP leakage, and quality erosion.
Feynman Explanation
Save 30% on the contract. Pay 100% on the rework.
Core Principle
Lower headline cost masks coordination failures, IP leakage, and quality erosion.
Mechanisms
Pending editorial review.
Lower headline cost masks coordination failures, IP leakage, and quality erosion.
Pending editorial review.
Pending editorial review.
TCO ignored at procurement, paid in operations.
Pending editorial review.
Pending editorial review.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
Save 30% on the contract. Pay 100% on the rework.
Examples
- Boeing 737 MAX outsourcing-tied quality failures.
- TCO ignored at procurement, paid in operations.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Total-cost-of-ownership procurement. Outcome SLAs.
Measurement Approaches
Pending editorial review.
Evidence
Pending editorial review.
Pending editorial review.
The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
- Total-cost-of-ownership procurement. Outcome SLAs.
Pending editorial review.
Pending editorial review.
Interactive Mini Network
Click any neighbor to re-center the graph and follow the threads of connection.
Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
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Funnels rewarded for new logos under-invest in retention and lifetime value.
Cuts that lift margin this quarter erode product quality and brand equity over years.
Narrowly tied bonuses get gamed; people optimize the metric, not the underlying goal.
Re-hires often get raises larger than internal promotions.
Pay tied to stock price encourages short-term price management.
CEO pay tied to size rewards deal-making even when acquisitions destroy value.
Sales forecasts under-set to ensure attainment bonus.
Capital tied to growth rates funds unsustainable scaling and unit-economics denial.
Managers measured by team size grow teams beyond need.
Awards reward visible novelty; quiet excellence goes unrecognized.
Innovation programs designed to signal innovation, not to produce it.