Consequences vs. Identity

There are two very different kinds of logic for making decisions. One is the logic of consequences. We’re great in business at changing behavior by changing consequences. If we want customers to buy more, we lower prices. If we want salespeople to sell more, we increase their bonuses.

But the second kind of logic is the logic of identity. Many of the most profound decisions we make in life are made because of identity, not consequences. When our newborn child cries at night, we don’t undertake a net present value analysis of how much more valuable an hour of sleep would be. We get up because we are a committed mother or father.

From Making the emotional case for change: An interview with Chip Heath, in McKinsey Quarterly