Latest / Engineering Alpha in Private Equity
Rethinking Incentives: (AI)ms vs. Goals and the Economics of Experimentation
When PE backed companies attempt to drive AI R&D performance, they often set local targets—like story point velocity or code commit volume that inadvertently trigger perverse incentives and operational chaos. In Episode 18 we examine organizational incentives in the age of AI through an economic lens. Quoting W. Edwards Deming’s famous warning: "I achieved my goal, but not my aim", we break down the crucial difference between rigid tactical goals and overarching strategic aims.
Paul and Dave explore how elite software companies use AI not just to write bulk code, but to dramatically…
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