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An Explanatory Model of Direction, Incentives, Identity, and Order

Why Sustainable Decisions Must Be Read Backwards

Model type: Explanatory model
Scope: Individual and organizational decision-making
Status: Stable draft
version: v0.1
last_updated: 2026-01-14


Abstract

This model explains why many decisions fail not because of poor execution, but because they are made against an implicit and unexamined measurement scale.

It proposes that meaningful decisions must be understood backwards: from order and identity down to incentives and exploration. The model distinguishes two fundamentally different phases of decision-making: one in which direction is unknown and reversibility is required, and one in which direction is known and commitment becomes necessary.


1. The Primacy of the Measurement Scale

Before any meaningful action, a prior question must be answered:

By what standard is this decision being evaluated?

Most decision failures originate not from wrong choices, but from implicit measurement scales that were never made explicit: speed, visibility, control, recognition, growth, or effort.

As long as the scale remains implicit, actions are misaligned by design.


2. Decisions Must Be Read Backwards

Decisions are often treated as forward processes:

explore → decide → structure

In reality, causality runs in the opposite direction.

The effective causal order is:

Order → Identity → Incentives → Exploration → Decision

Attempting to change behavior without addressing identity or order results in friction rather than progress.


3. Two Distinct Phases of Decision-Making

Phase A: Direction Is Unknown

When direction is unclear, the system must remain flexible.

Characteristics of this phase:

Premature structure hardens wrong paths.

In this phase, strong identities and rigid order reduce learning and lock in errors.


Phase B: Direction Is Known

Once direction becomes clear, the logic reverses.

The effective sequence becomes:

  1. Incentives change first
    What is rewarded or penalized shifts.

  2. Identity stabilizes through repetition
    Self-understanding follows experienced consistency.

  3. Order emerges last
    Structures consolidate what already works.

Order succeeds only when it arrives last.

If order is imposed before incentives and identity align, it is resisted or circumvented.


4. Typical Failure Modes (Structural Misordering)

When the sequence is violated, characteristic failure patterns appear:

These failures are structural, not personal.


5. Why the Sequence Works

The model aligns with observable behavior across domains:

This explains why:


6. Scalability

The model applies across scales:

The causal logic remains invariant; only the concrete expressions differ.


Core Insight

Uncertainty requires reversibility.
Clarity requires consequence.

Condensed:

Keep options open while learning.
Turn incentives once direction is clear.
Let identity stabilize.
Harvest order.


Model Status

This is an explanatory model.

It does not prescribe values or outcomes. It explains why certain decision sequences reliably produce coherence, while others generate friction and instability.


How to Cite

Wende, A. (2026).
An Explanatory Model of Direction, Incentives, Identity, and Order: Why Sustainable Decisions Must Be Read Backwards.
Exploratory Notes, systemic-effect.org. Version v0.1.
https://systemic-effect.org/exploratory-notes/direction-incentives-identity-order/v0.1


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Exploratory Notes