The Commitment Problem

Do you eat the chocolate, or do you stay on your diet?

Do you take a drink, or do you stay sober?

Do you have an affair, or do you stay faithful to your spouse?

Do you choose immediate, pleasure-seeking self-interest, or do you stay commited to your ideals and relationships?

That's the Commitment Problem. It's a big part of life. It's a big part of business as well.

• When you hire a new employee, will they be committed to the success of your company? Or will they dip into the till, steal office supplies, and embezzle millions at the first opportunity?
• When you promote someone into management, will they work for the betterment of the group or get seduced by their position, abuse their underlings, and embezzle millions at the first opportunity?
• When you try to collaborate with someone, will they share with you in good faith, or abuse your trust, steal your ideas, and make millions in the marketplace that should have been yours?!

Thomas Schelling identified the Commitment Problem in the The Strategy of Conflict back in 1963. Dacher Keltner revisited it in his recent book, Born to be Good. Now, these books are not easy reads, and they don't result in simple three-step formulas for business success, but they do get one thinking.

How do we figure out who is committed to us, who is inclined to value long-term bonds with us, who is likely to be faithful and caring towards us, towards our cause? How do we figure out who is likely to lie, cheat, or sacrifice us for their own benefit? How do we avoid being exploited, to avoid being fooled?

No easy answers, to be sure, but important enough to try to figure it out.