INCENTIVES DRIVE BEHAVIOUR

A lesson in incentives, told through one of the strangest football matches ever played. Have you heard about the game where a team scored an own goal on purpose…and still won?

Sounds absurd. But it happened.

In 1994, Barbados needed to beat Grenada by two clear goals to advance in the Caribbean Cup. But this tournament had a strange twist… If a match went to extra time, the first goal (called a Golden Goal) would count as 2 goals. So a 2-2 draw in regular time, followed by a Golden Goal in extra time, would count as a 4-2 victory.

And this is where it all went sideways.

With minutes left, Barbados were up 2-0 and on track to qualify. Then Grenada scored, making it 2-1 and suddenly, Barbados would be eliminated.

So Barbados did something wild.

They deliberately scored an own goal to tie the game at 2-2, pushing the game into extra time.

Their plan?

Win in extra time via the Golden Goal rule, which would count as 2 goals, and therefore making the final result 4-2, and a two-goal margin.

What followed was chaos…

• Grenada, realising the plan, tried to score in either goal (Barbados’s or their own) to avoid extra time. If they won or lost by 1 they would then advance.
• Barbados had to defend both goals to keep the game tied.
• But, in extra time, Barbados scored the Golden Goal, making it a 4-2 win and advancing.

The Golden Goal rule created what is called a perverse incentive:

• Barbados deliberately scored an own goal. On purpose.
• Both teams then tried to score in either goal.
• The rules got played. Not just the game.

Business schools now teach this case:

• People don’t do what you expect. They do what you incentivise.
• Poorly designed rules create loopholes. People will exploit them.
• Misaligned incentives lead to chaos. Even if technically “legal.”
  
  

Leadership takeaway?

Incentives drive behaviour. Even irrational behaviour can be rational if the incentives are poorly designed.

If your team is defending two goals at once, the problem might not be them. It might be you…or the way the game is set up.