Incentives shape behaviour, but what happens when they backfire? Consider how a major city like New York attempted to boost taxi availability by raising wages. Surprisingly, this led to fewer taxis on the road as drivers, having met their income targets, opted to work fewer hours. Why did this approach fail? Understanding human behaviour and designing the right incentives are key to unlocking the answer.
The same can be said for how procurement interacts with suppliers. How do you design and use incentives to get better results?
Join this CIPS Download webinar to discover how the principles of game theory and behavioural economics can help you get your incentives right, to unlock true savings potential.
On the agenda:
- Why conventional cost down programmes with suppliers often fail to meet their targets
- What to avoid when setting up incentive systems to unlock cost down potentials
- The role of game theory and behavioural economics for unlocking cost potentials
- How to shape foster x-functional collaboration to drive down costs in tough situations
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Sarah Polborn is Principal at TWS Partners, a consultancy specializing in economic strategy. She combines scientific methods from economics with extensive hands-on experience in procurement and negotiations across various industries. A key focus of her work is driving cost down initiatives by optimising sourcing strategies and leveraging economic principles to achieve impactful results. Sarah holds a PhD in Economics from Pennsylvania State University and studied Economics at the University of Maastricht and Hong Kong University of Science and Technology. Prior to joining TWS, she was an Assistant Professor of Economics at the Aarhus School of Business, where she focused on applying game theory.
Lisa Lenz is a micro-economist by heart and by training with a strong background in applied game theory and behavioural economics. She holds a PhD from the University of Cologne and conducted research within the International Max Planck Research School on Adapting Behaviour in a Fundamentally Uncertain World. Across. Supporting clients from various industries at TWS Partners, Lisa has successfully applied her expertise to drive cost-down initiatives. By leveraging economic principles and incentive design, she has helped organisations optimise procurement strategies and uncover significant cost down potentials.