behavioral psychology – reward reinforcement
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clear goals (contracts)
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fast rewards (cashflow)
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clear goals
The first part of behavioral psychology’s reward reinforcement philosophy is to make sure that all parties can clearly identify a singular clear goal.
clear goals = automate contracts
Using the smart contracts (if/then agreements) on blockchain, project wallets nest goals in the form of contracts / subcontracts so that all parties have clearly defined goals.
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the contract (by phase)
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between the Owner + Contractor
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including sequential scope of work + value
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broken down into phases (Contractor’s goals)
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subcontracts (w/invoices)
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nested inside phases
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between the Contractor + Sub/Supplier
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broken down with preset invoices (Sub/Suppliers goals)
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nested goals = cooperative game play
by nesting the Contractor’s goal as the completion of a phase, their reward is now dependent on the Subs/Suppliers completing & closing all the subcontracts in that phase.
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fast rewards
The second part of reward reinforcement is the fast/immediate reward. The longer the time delay from action to reward, the less effective and less likely to spur additional willful action.
Fast rewards = automate cashflow
Since smart contracts are self-executing if/then agreements, all we needed was to ensure that the funds were available for instant release “approve to pay”.
Contractor reward = phase OH&P
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goal – complete phase
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work – subcontract & complete all contracted work
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submit – Contractor submits completed phase
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approval – Owner approves the phase
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reward = phase OH&P (overhead & profit)
Sub/Supplier reward = invoice value
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goal = preset invoice
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work – scope of work in the subcontract
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submit – Sub/Supplier submits completed invoice
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approval – Contractor approves invoice
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reward = invoice amount
think
from: isolation comes from a fixed mindset where everyone has to fight everyone to get their small piece of the limited resources available. Rewards are subjective, benefiting the loudest (the squeaky wheel gets the grease) with “stick” motivation tactics trying to
to: automation leverages a growth mindset + cooperative game theory, where all parties work together to achieve exponential returns faster, while using less input.
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feel
from: RI$K (real or perceived) hijacks the brain’s amygdala & shrinks neural pathways, so only rote memorization can be executed – so no new ideas will flow and problem-solving decisions will be reduced to only those that have been proven to work in the past.
to: TRU$T from team automation releases oxytocin (known as the “trust” hormone) enhancing feelings of safety & connection while activating reward circuits that reinforce positive social interactions and cooperative game play. Creativity flows freely and problem-solving opportunities grow with exponentially beneficial outcomes.
act
from: FLOAT is the default action in the presence of RI$K (possibility of financial loss) as fear highjacks the brain’s amygdala - forces delay in both thought & action while reducing the number of solutions the brain can come up with. “hurry up & wait”
to: FAST with the “trust hormone” oxytocin released, the team grows interpersonal confidence, and individual neural pathways expand - achieving peak performance in both action and creativity. Peak performance, both personally and as a Team.