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LDR 402 · Unit 5 of 6

Incentives, Metrics and Behavioral Effects

Organizational Design and Incentive Systems

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Learning objectives

After completing this unit, you will be able to:

  • Apply frameworks to case studies and projects
  • Apply the frameworks in "Incentives, Metrics and Behavioral Effects" to a real management decision
  • Make progress on your Applied project applied project

Why this matters

Incentives, Metrics and Behavioral Effects is essential to Organizational Design and Incentive Systems. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 4 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Applied project. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Incentives, Metrics and Behavioral Effects"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Applied project?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • Apply frameworks to case studies and projects
  • Business concepts only matter when they change a decision.
  • Your LDR 402 assessment (Organizational Design and Incentive Systems. Six units covering applied topics in this concentration.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

50% applied project30% case work20% knowledge checks

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Incentives, Metrics and Behavioral Effects45 min
Complete a focused practice exercise on **Incentives, Metrics and Behavioral Effects**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under LDR 402.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Incentives, Metrics and Behavioral Effects30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your LDR 402 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Reflection

Reflect on how the unit concepts apply to your work.

ReflectionReflection: Incentives, Metrics and Behavioral Effects40 min
Write a structured reflection (400–600 words) on **Incentives, Metrics and Behavioral Effects**. Address: 1. What surprised you in this unit? 2. Where have you seen this dynamic in a team or organization? 3. What will you do differently in the next 30 days? Use specific examples. Avoid generic statements.

Deliverable

Reflection document in your portfolio.

Rubric

  • • Specific personal or observed example
  • • Connects unit concepts to behavior
  • • Identifies a concrete behavior change
  • • Honest and analytical tone

Knowledge quiz

Check your understanding before marking the unit complete.

1. BrightPath faces: redesigning partner compensation to reward cross-practice revenue, not practice hoarding Which framing best matches decision-grade leadership analysis?

2. Which framework is most directly tied to Goodhart's law in this unit?

3. In the BrightPath scenario (Practice hoarding), what is the core risk if leaders skip incentives, metrics and behavioral effects?

4. BrightPath has 900 employees and $240M revenue. Why do small failures in incentives, metrics and behavioral effects compound?

5. Which mistake mirrors HarborPoint Advisors' failure in the worked example?

6. Which evidence label is appropriate after a 12-person focus group on incentives, metrics and behavioral effects?

7. Diane Foster proposes a pilot on 0.85 managers/units/teams before scaling Balanced scorecard. What is the best reason?

Next unit: Organizational Redesign and Implementation →