
Incentives drive the behavior of people and the performance of organizations. Tires Les Schwab is a study in win-win business relationships.
See https://www.buildbigideas.com/post/incentives-in-organizations-as-exemplified-by-tires-les-schwab for full show notes.
Quotes by Charlie Munger:
- “Show me the incentives and I will show you the outcome.”
- “Never, ever, think about something else when you should be thinking about the power of incentives.”
Charlie Munger points to the book "Les Schwab Pride in Performance: Keep in Going" as indicative of the philosophy that he and Warren Buffett use to incentivize the managers of Berkshire Hathaway subsidiary companies.