The Incentives Lab
The III Framework™

Six dimensions. One operating system for seeing systems.

The Incentive Intelligence Index™ is the diagnostic spine of the Institute. Every Executive Course module, lab, and executive assessment maps back to these six dimensions.
01
Visible Incentives
Diagnostic question
What is the official scoreboard?

Comp plans, OKRs, bonuses, promotions, public metrics. The formal architecture of reward that everyone can name.

In practice

A sales team paid on bookings will optimize for bookings — even when retention is what matters.

02
Hidden Incentives
Diagnostic question
What actually drives behavior?

Status, belonging, fear, identity, ego, political safety, the unspoken rules of the room. Far more powerful than the visible layer.

In practice

Engineers shipping mediocre code because being seen as 'shipping fast' outranks being seen as 'careful'.

03
Perverse Incentives
Diagnostic question
What is rewarded that shouldn't be?

Structures that reliably produce the opposite of stated intent. Goodhart's Law, the Cobra Effect, moral hazard at scale.

In practice

Hospitals rewarded for procedures done — not outcomes achieved. The system performs exactly as designed.

04
Missing Incentives
Diagnostic question
What critical behavior is invisible?

Things every leader says matter but no system rewards. Collaboration, mentorship, knowledge transfer, dissent, long-term thinking.

In practice

'We value innovation' but every metric punishes the failure required to innovate.

05
AI Incentives
Diagnostic question
What are humans and machines optimizing for?

Alignment dynamics between human reward systems and machine objective functions. Where AI accelerates good incentives — and bad ones.

In practice

An AI agent optimizing for engagement does its job perfectly. The damage is in the objective, not the model.

06
Future Incentives
Diagnostic question
What signals predict tomorrow?

Early-warning incentives quietly forming inside customer behavior, talent markets, regulation, and emerging technology.

In practice

Talent leaving for autonomy years before salary becomes the visible reason on the exit survey.

See where your organization sits across all six.

The Incentive Intelligence Assessment™ scores your organization across every dimension and returns an executive summary, blind spots, and recommended interventions.

Take the Assessment →