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In this episode of Under the Hood, we unpack a dangerous paradox: • The more “strategic priorities” you give your team, the less strategic focus you actually get. • The more you tie compensation to narrow KPIs, the higher the probability of manipulation. Research featured in Harvard Business Review shows a hard truth: When bonuses are tightly linked to specific targets, especially threshold-based rewards, managers are significantly more likely to cross ethical lines. Not because they’re bad people. Because incentives shape behavior. We break down: • Why 7 “top priorities” means zero real priority • Why 1 single KPI is an invitation to gaming the system • How compensation structures can unintentionally drive unethical decisions • The behavioral economics behind bonus-induced distortion • Real cases like Wells Fargo and Volkswagen • Why focus + balanced KPI tension + clean incentive architecture = sustainable high performance You’ll also get a practical framework to audit: 1. Strategic project overload 2. KPI imbalance 3. Ethical risk embedded in bonus design High performance is not about motivation speeches. It’s about system architecture. If you’re a CEO, founder, or executive designing targets and incentives, this episode may change how you think about performance forever. Subscribe for more deep dives into the structural mechanics of leadership, strategy, and decision-making. --- Under the hood – a blend of business and sociopsychology Understanding is useful. Execution is mandatory.