Compensation by Design: Rewarding High-Leverage Work in Complex Systems
Introduction: The Currency of Leverage
In a world increasingly defined by complexity, not all work is created equal. Some efforts move the needle; others merely keep the wheels turning. Yet traditional compensation systems often fail to distinguish between the two. They reward presence over progress, activity over impact.
Systems thinking urges us to reconsider this. As Donella Meadows writes,
“The leverage point is not where you push harder—it’s where you push smarter.” In business, the highest leverage lies in those who build structure, absorb complexity, and make decisions that shape the system’s future. These individuals do not just work in the machine—they reconfigure it.
This is a framework for compensating such people.
🧱 Pillar 1: System Builders & Scalability Enablers
Definition: High-leverage individuals create tools, structures, or processes that decouple growth from headcount. Their work scales.
Why it matters: In systems thinking, this is equivalent to changing the structure rather than tweaking inputs. They reduce entropy—creating order from complexity.
Actions include:
Building reusable systems (e.g., automation, templates, SOPs). Designing scalable workflows used by multiple teams. Reducing long-term operational costs through one-time builds. Systemic Impact:
They create buffers that absorb future shocks. Their systems become nodes of distributed intelligence across the organization. 🔍 Pillar 2: Complex Problem Solvers
Definition: These individuals think holistically, diagnose root causes, and see the system’s interdependencies.
Why it matters: In a dynamic system, solving the wrong problem faster is still failure. High-leverage thinkers reframe the problem.
Actions include:
Conducting causal loop analysis to uncover feedback traps. Mapping problems across functions or departments. Solving in ways that reduce recurrence, not just firefight symptoms. Systemic Impact:
They improve system resilience. They reduce error propagation through upstream interventions. 🧭 Pillar 3: Decision-Makers with Judgment Accountability
Definition: These are individuals whose decisions influence the behavior of the whole system—and who are willing to be accountable for it.
Why it matters: In complex systems, decisions are interventions. Each one nudges the system into a new state.
Actions include:
Owning outcomes beyond their function. Explaining their decision paths transparently. Accepting feedback and consequences—upstream and downstream. Systemic Impact:
They reinforce trust in decentralized decision-making. They serve as leverage multipliers in decision velocity. 📊 Pillar 4: Transparent Judgment & Learning Archives
Definition: These individuals document their thinking and make it traceable—turning decision-making into an organizational learning loop.
Why it matters: Systems evolve. Documented judgment becomes a shared cognitive asset that future employees can inherit.
Actions include:
Creating decision journals. Logging reasoning and alternatives in platforms like Notion or Coda. Turning key decisions into shareable case studies. Systemic Impact:
They reduce cognitive loss from attrition. They accelerate collective intelligence through knowledge externalization. 📣 Pillar 5: Proactive Communication & Feedback Loops
Definition: These individuals treat communication as a circulatory system, not a command line.
Why it matters: Systems don’t just run on code—they run on clarity. Proactive communicators keep feedback loops open, alive, and evolving.
Actions include:
Giving updates before they’re asked. Asking for feedback preemptively. Designing spaces (Slack channels, retros, stakeholder calls) for iterative dialogue. Systemic Impact:
They close feedback loops faster. They de-risk misalignment and accelerate adaptation. 🎯 Using the Framework
This framework is not a performance checklist. It’s a system diagnostic.
Use it to:
Design compensation and bonus systems: Reward based on systemic leverage, not tenure. Drive performance reviews: Assess contributions not by volume, but by structural impact. Anchor role leveling: Elevate those who shift system behavior. Guide equity and grants: In startups, equity is a bet on system shapers, not task-doers. Conclusion: Leverage as Currency
In a well-structured system, not every role needs to carry high leverage—but those that do should be unmistakably recognized. In the ecology of work, builders of self-healing, self-scaling systems are the keystone species. Without them, the ecosystem frays.
So the question is not just: “How hard are you working?”
The better question—through the lens of systems thinking—is:
“What part of the system does your work rewire?”