Incentives, Friction, and Soul in the Game

One of the things I keep thinking about is the extent to which most companies go out of their way to discourage their own employees from tackling the problems they spot.

It’s kind of crazy, right? Because that’s exactly why companies hire people in the first place. At least in theory.

Yet, the incentives and internal dynamics often push folks away from wanting to make big improvements.

You have to remember, people naturally avoid pain. And while some thrive on a bit of risk, most will steer clear of pursuits where the potential rewards are dwarfed by the downsides.

Imagine I’m a plumber, called in to fix a simple leak in your house. While I’m at it, I uncover a major plumbing disaster waiting to happen. I’d see it as my duty to flag this, and I’d speak up.

As the homeowner, you’d probably groan, more money to shell out, more hassle, maybe even no water for a couple of days?

So you’d grill me: Are you absolutely sure? What if we ignore it? You might even seek a second opinion.

Now, plumbers deal with homeowners on a one-off, transactional basis, so I have a real material interest in pointing this out. And your skepticism makes sense, because I could be inflating the issue to score a bigger job.

But software developers, even contractors, are typically paid for their time, regardless of what they accomplish day to day.

As a company employee, if I spot a problem and keep quiet, it costs me nothing. And solving a massive company issue? There’s not much personal upside, since successes get credited to the execs or the team as a whole, to sidestep any jealousy or politics.

What I’m left with is mostly just the risks and the hassle.

I’d need to flag it to the decision-makers. They’d eye me like some overeager kid itching to tinker for fun. They’d demand data and proof for stuff that’s inherently uncertain. I’d have to estimate, persuade, set milestones, track progress, and report in constantly.

I’d also have to pitch this to my colleagues, and some would feel attacked. I’d win over a few, but I’d make enemies along the way.

If it flops, even if they didn’t let me handle it my way, guess who’d take the heat? Me. I might not get canned, but people would whisper about the newbie who thought he knew it all. I’d get lectures on the sacred “domain knowledge” and how things that work elsewhere just don’t work here.

All told, I’d shoulder serious personal risk, pour in extra effort, do the heavy lifting myself, and endure the stress, for something that won’t reward me much, even if it succeeds. Doesn’t sound appealing, does it?

And that’s why most folks don’t bother.

Hold on, I can already hear you pushing back: What about skin in the game? Your bonus, equity, or profit-sharing?

Fair point, but outcomes are rarely pinned to one person. Even if I pull off something huge, my impact gets watered down or offset by other efforts. Plus, the revenues or share value of a large company isn’t the sum of its employees’ contributions, so bonuses are more driven by politics than they depend on personal success. No, skin in the game doesn’t fix this.

Still, some rare individuals make it their calling to push boundaries, craft visions, overhaul broken processes, and tackle their company’s most challenging issues.

Why? Mostly because they can’t help it. That’s what true strength looks like, they pursue it even when it’s risky or inconvenient, finding self-actualization in it, seeing it as a duty to the company and themselves. In short, they have soul in the game.

Let me wrap this up by reminding you: software product development is all about power laws, exponential leaps, discovery, experimentation, and collaborative knowledge work. It’s not some predictable, assembly-line grind.

Those breakthrough moments can define a product, or an entire company.

As a leader, you want to hire mostly those unstoppable forces who chase perfection relentlessly, to guarantee real excellence.

Hiring isn’t just about whether someone can do the job, it’s about whether they will, even when the company’s setup works against them. Skills? Those can be picked up. But attitude? That seldom shifts.

Every stalled company is packed with smart folks sporting degrees and resumes who never move the needle.

Beyond hiring, acknowledge that shaking things up always involves some friction and risk. But as a company, do what you can to dial it down.

Even those with soul in the game have limits, energy drains, families to support.

Make the path too painful or perilous, and even the boldest change-makers might pull back.

So if you’re an exec, director, manager, or anyone calling shots, pay attention. Don’t foster an environment ripe for groupthink, inertia, missed opportunities, and silent disengagement.