Alex Hormozi: They lied to you: Why Punishment DOESN'T WORK..

The video discusses the use of incentives and punishments in influencing behavior, and argues that while punishments may lead to avoidance of certain behaviors, incentives are more effective in getting people to do what you want them to do.

This video by Alex Hormozi was published on Apr 25, 2022.
Video length: 08:25.

In this video, Alex Hormozi discusses the use of incentives and punishments to influence behavior.

He explains that while punishments may get people to avoid certain behaviors, they do not necessarily lead to the desired behavior. Incentives, on the other hand, can direct behavior towards a desired outcome.

Hormozi provides examples of how to use positive and negative incentives to get people to do what you want, and emphasizes the importance of leadership and understanding human behavior in building successful businesses.

• Power is the ability to influence events or people.
• Leadership is about getting someone to believe that doing what you want them to do is in their best interest.
• There are four ways to influence behavior: adding a positive, subtracting a negative, adding a negative, and subtracting a positive.
• Punishments may lead to avoidance of certain behaviors, but incentives are more effective in getting people to do what you want them to do.
• Incentives are a big part of being a good leader and driving behavior.

They lied to you: Why Punishment DOESN'T WORK.. - YouTube

Introduction

• Definition of power is the ability to influence events or people.
• Power is neither good nor bad, it's just raw potential.
• Leadership is fundamentally about getting someone to believe that doing what you want them to do is in their best interest.
• Incentives are a big part of getting people to do what you want them to do.
• Punishments may lead to avoidance of certain behaviors, but incentives are more effective in getting people to do what you want them to do.

The Four Ways to Influence Behavior

• There are four ways to influence behavior: adding a positive, subtracting a negative, adding a negative, and subtracting a positive.
• Adding a positive means giving someone something they want in exchange for doing what you want them to do.
• Subtracting a negative means taking away something they don't want in exchange for doing what you want them to do.
• Adding a negative means giving someone something they don't want if they don't do what you want them to do.
• Subtracting a positive means taking away something they do want if they don't do what you want them to do.

The Problem with Punishments

• Punishments may lead to avoidance of certain behaviors, but they don't necessarily lead to doing what you want them to do.
• Punishments can encourage criminal behavior by incentivizing people to find new and ingenuitive ways to do what they want to do without getting caught.
• Punishments force people to avoid anything that will give them the punishment, rather than directing behavior towards what you want them to do.
• Incentives are much more effective in getting people to do what you want them to do.
• Leadership is about figuring out how to get people to do stuff, and incentives are a big part of that.

They lied to you: Why Punishment DOESN'T WORK.. - YouTube

The Importance of Incentives in Leadership

• Incentives drive behavior, and there is a lot of documentation on that.
• Good leadership is about figuring out how to incentivize people to do what you want them to do.
• Great people build great companies, and as entrepreneurs, we must be good leaders to attract good people and build great companies.
• Figuring out how to get people to do what you want them to do is a big part of being a good leader.
• Incentives are a powerful tool for getting people to do what you want them to do.

Why Punishment Doesn't Work

• Negative reinforcement leads to degraded performance over time.
• Positive feedback by a large majority of the time leads to improved performance.
• Punishment leads to avoidance of certain behaviors, but not necessarily doing what is wanted.
• Incentives are more effective in directing behavior towards what is wanted.
• Mini steps can be incentivized with positive outcomes, which don't necessarily need to be monetary.

Directing Behavior with Incentives

• Positive incentives are more effective in directing behavior than negative ones.
• Circumstances and outcomes can be measured to direct behavior in the right ways.
• Measuring conditions allows for directing behavior in the right ways.
• Reinforcing behaviors continuously leads to doing them without thinking about it.
• Conditioning people to do what is wanted is more effective than nagging them.
• Reinforcements can be positive or negative to accomplish what is wanted.

Watch the video on YouTube:
They lied to you: Why Punishment DOESN'T WORK.. - YouTube