Ep. 15: Compensation - The ONLY Way to World-Class (1 of 4)

Creating the Perfect Company

In this episode, Andrew speaks plainly and directly to you from the Awakened Forest without any of the spectacle of a large public audience. He goes DEEP into the philosophical explanations of why Compensation IS your main System/Structure in creating a World-Class company. We live in a world of “Incentives and Disincentives”... and BOTH the Positive and Negative need to be used in a balanced system that will LAST! Emerson sets the frame, Munger lands the punch (“Show me the Incentive and I’ll show you the Result”), and Reed goes about as far as any business person or philosopher has gone on the topic. And he gets practical… REAL -REALITY- What IS! Humans seek Purpose & Meaning over Money, so this is paramount…and bad or poor cultures will drive away Top Talent no matter how much you pay them…

Chapter Markers

(00:12) Beyond the Brag: MVI data, intent, and the Awakened Forest context

(01:10) Philosophy First: Emerson on compensation; correcting “paycheck-only” thinking

(02:34) Incentives Drive Outcomes: Munger’s maxim and why comp solves real problems

(03:20) Compensation as Structure: System solution > people solution; design the behavior you need

(03:44) What's Better than the Carrot?: Use incentives and disincentives; accountability cultures feel the sting when standards aren’t met

(07:15) Everyone Seeks a Payoff: Volunteers, meaning, and why significance keeps people engaged

(09:09) Two Poles of a Magnet: Life’s duality; why practices evaporate without deep understanding

(10:51) Meaning Over Money: The ditch-digging parable; culture beats “big checks” for retention

(15:10) Two Kinds of Pay: Financial comp and atmosphere comp; the transactional world and human will

(22:25) Pain Teaches: Standards pay, the role of “sting,” risk–reward, and betting on yourself/company

(28:00) Value, Wealth, Happiness: Value as projection; wealth as luxuriating; happiness ≠ fun; include the negative side

(38:35) Origin Story & Results: From musician to CPA to comp-systems; 100% productivity/quality lift; national-stage backlash; focus for CFO/CEOs going forward

Song: If All the World Were Right - andrew reed & the liberation

Album: If All the World Were Right (Trilogy II Album 1)

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“The lowest form of teaching is telling people to do things rather than explaining the why behind the action.”