Charlie Munger said incentives dictate outcomes, but bonuses only work if you hire competent people. If your team is full of mediocre performers, no bonus program will fix that. Pair incentives with clear targets and hire people who actually want to win.
Charlie Munger always used to like to say that, show me the incentive and I'll show you the outcome. At least it's attributed to him. So I'm of the mindset, same as you, you want people to win together, right? Here's the thing I learned maybe 10 years ago, maybe Noah's part of this too. You can set the best incentives in the world, but if your hiring is geared towards 80%, you're going to take shots on people versus like people that have been there, done that. All the incentives in the world, the best programs aren't going to do it. They're not going to do anything, right? You need to have people who are competent with the best incentives program. So as I talk to new people joining the team right now, it's like, yeah, absolutely incentives. But also, absolutely, we need to hit numbers. It's not just like, oh, you know, we're just gonna randomly give bonuses everywhere and they become an expectation, right? We want— we gotta win together. Yeah.
