What we are incentivising for?
If we are building a company how do we be sure that the purpose behind what we are building is never violated?
The moment we impose a structure from the existing world, we might jeopardise the purpose.
Shareholders usually have one interest. A return on their investment. Even though they might like the idea of an enterprise for a world with a future, if they do not see their return in a short time frame, they demand change.
The money, be that the bank, or venture capital, wants to know if you can you make the payments, plus interest. What is your growth and how fast? Debt finance will ask you for the repayments and the interest, irregardless of your circumstances. 10% (and usually higher) is written in from day one. There is an almost complete uncoupling of concern for your purpose, only performance matters.
The people who are working in the enterprise have an interest. If they receive a salary, they want to do their work, fulfil their responsibilities, and go home. If they get paid a bonus, they will manipulate most anything to get that bonus, including the opportunity for a future for the entire company.
If we want to design enterprises for a world with a future we must deeply consider what we are incentivising for.
Photo taken March 25th 2021
