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Archive for November, 2009

WARNING – Higher Incentives May Lead to Worse Performance!

By Martin Fox.

“‘If… then’ rewards, the things around which we have built so many of our businesses, DON’T WORK!”  In fact, in those types of activities, tests showed that “higher incentives led to worse performance.”

While on vacation in Washington, D.C., I enjoyed two wonderful tours at the Library of Congress and the Kennedy Center for the Performing Arts.  What made these tours so great was not the magnificence of the buildings, nor the history associated with them; it was the passion displayed by the tour guides who led our groups 

Remarkably, these tour guides were unpaid docents who did their jobs out of a desire to share their love of their subject with others.  As I reflected on what made these tours so memorable, I realized that both of the docents were motivated by a passion to:

  • Educate and inform – they provided a lot of information to make our experience worthwhile.
  • Inspire us – they wanted to motivate us to have a perspective beyond ourselves.
  • Encourage our personal involvement – they wanted to kindle a desire inside of us to take action.

A few days later, I was introduced to a presentation by Daniel Pink, the author of the soon-to-be-published book, Drive: The Surprising Truth About What Motivates Us.

In the presentation, he makes the statement that was made at the beginning of this piece, i.e., that when it comes to complex or creative tasks, performance incentives don’t work.  He supports his assertion with several tests showing that, in fact, performance actually declines in certain types of tasks.  Yet, in business, we go on building performance initiative systems based on the belief (no… the KNOWLEDGE) that these rewards are effective at improving performance.  As Mr. Pink says:

“There’s a mismatch between what science knows and what business does.”

Instead, science shows that workers in these complex or creative jobs are motivated by three things:

  1. Autonomy – the urge to direct their own lives,
  2. Mastery – the desire to get better and better at something that matters, and
  3. Purpose – the yearning to do what they do in the service of something larger than themselves

This is not to say that money is unimportant; in fact, he begins with the premise that people receive a fair base pay.  However, these intrinsic motivations (satisfaction in the work itself) are far more critical than extrinsic motivations (rewards) when it comes to improving performance.

In survey after survey, employees in these types of jobs show that they want:

  • Challenging work
  • Meaningful work
  • Involvement in the outcome
  • Direction over their own work
  • Feedback on their performance

In many ways, these are much more challenging to manage than assigning monetary rewards to outcomes.  It is the challenge of management, though, to create the type of environment that motivates people to work beyond even their own expectations.

Watch the video yourself to gain a better understanding of the science behind motivation.


A Customer Service Lesson from Washington

By Martin Fox.

It’s a cold and rainy day in our nation’s capital.  My wife and I have walked several blocks to the Newseum, an amazing 250,000 square foot museum devoted to the history of news.  We walk up to the door labeled “Group Entrance” and step inside.  I ask where the main entrance is, anticipating the response I know I’ll hear.

“It’s on the other side of the building,” the attendant says (I sigh), “but we can help you here.”

What refreshing words to hear!  We don’t have to go back outside and walk the two blocks to get to the front door.  Not only that, he calls for someone to come over and help us.  A friendly woman comes to greet us with her full personal attention.  She asks if we would like to check our coats (“Are you kidding!?”) and offers to escort us to the ticket counter.  I tell her that I already bought my tickets online, so she escorts us to the beginning of the exhibit area.

Nearly every Newseum employee we encountered had a similar attitude.  “How can I help you?” was a common question, accompanied by genuine interest in making sure we had a pleasant experience.

The team members at the Newseum all exhibited “customer-centric” attitudes.  To a person, the attitude was one of serving the customers’ needs rather than focusing on their prescribed systems and procedures.

How often have you heard these comments?

  • “I’m sorry, that’s not my job.”
  • “That’s our policy.”
  • “You’ll have to talk to my manager.”
  • “No, we can’t do that.”
  • “If you’ll go over there, someone can help you.”

These phrases are all examples of an inward focus on systems and procedures (in the name of efficiency); instead, we should have an outward focus on meeting the needs and wants of our customers.  This may require an adjustment of attitudes and culture, and it must start with the leader’s actions and tone.  Standardized procedures are important, not because they help to keep costs down, but because they increase the likelihood that the customer receives an acceptable level of service.  Meetings and communications should include reports of service provided, customer feedback, examples of great service, and opportunities to improve.

Ask yourself the following questions:

  • Does our strategic plan focus on our customers or on our products and services?
  • What action steps have we implemented in the past year to improve service to our customers?
  • What metrics do we use to measure customer service?
  • Do our systems and procedures allow employees flexibility in serving our customers?
  • Is there time set aside in our meetings to discuss customer service?

The next time you update your strategic plan, begin by focusing on how you can improve your customers’ experience with you.  Your discussions and, as a result, your plan, will take on a much more positive tone.  In the end, you will have better processes, happier customers, and a much more motivated team.


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