Scientific Definition
Public companies optimize for 90-day numbers, starving long-horizon investment.
Plain-English Definition
Public companies optimize for 90-day numbers, starving long-horizon investment.
Feynman Explanation
The CFO can see the quarter. The grandkids can see the rest.
Core Principle
Public companies optimize for 90-day numbers, starving long-horizon investment.
Mechanisms
Pending editorial review.
Public companies optimize for 90-day numbers, starving long-horizon investment.
Pending editorial review.
Pending editorial review.
Reporting cadence shapes strategic horizon.
Pending editorial review.
Pending editorial review.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
The CFO can see the quarter. The grandkids can see the rest.
Examples
- R&D cuts timed to consensus beats.
- Reporting cadence shapes strategic horizon.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Long-term incentive plans. Voluntary guidance reform.
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.
- Long-term incentive plans. Voluntary guidance reform.
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.
90-day reporting windows shape multi-year strategies.
Earn-outs designed to retain founders often demotivate the team they bought.
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.