Imagine paying folks to chop trees by the hour.
If you were paid by the hour or “session,” you would demonize the chainsaw (so dangerous!) while pointing out that the “traditional ax” still works.
And yet, if you show up in lumber camp with an ax, and don’t know how to start, use, and sharpen a chainsaw, you’re going to get laughed off the lot.
The point here is a simple one: how you compensate, and what you compensate for, creates tool selection bias.
Pay for time, and you can guarantee the tools used will be the least efficient.
Pay for the job to be completed to objective standards, and you’re going to see efficient tools and managed costs.
Now, consider this within the context of dog training.
Any wonder why “dollar an hour” dog trainers gravitate to the least efficient tools?
They are financially incentivized to prolong dependency and maximize hourly billing.
Incentives are a core part of dog training, and not just for the dog!
When dog training is a business, as Warren Buffet’s business partner, Charlie Munger might note, incentives play a role in developing the business model.
The same is true down at the gym, as I have noted before.
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