Anyone who owns a small business has likely had to deal with contracts. And although contracts aren’t usually considered to be especially interesting, they are certainly important. In fact, two men just won a Nobel Prize for their work with contracts.
That’s right, the Nobel Prize in economics just went to Oliver Hart and Bengt Holmstrm for their work with contract theory. More specifically, Holmstrm’s research focused on the effectiveness of performance-based pay. And Hart is known for noting that not every situation can be foreseen in a contract.
Chances are, you’re more concerned about the actual content of your business’s contracts than the theory behind them. But the the importance of behind the scenes work, even in preparing contracts, is why these two professors are now being recognized for their contributions.
An Example of the Importance of Behind the Scenes Work
Hart and Holmstrm worked for years in an area where there’s not a whole lot of recognition from the public. It’s the same with your small business. Just because a job doesn’t seem particularly interesting from an outside perspective doesn’t mean that it isn’t worth doing. So if you only ever take on projects or tasks for your business that seem exciting, you might miss out on some really worthwhile improvement opportunities behind the scenes.
Nobel Prize Center Photo Via Shuttrstock