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12th Annual Service Management Forum Daniel H. Pink 4 March 2010

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12th Annual Service Management Forum

Daniel H. Pink4 March 2010

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THE CANDLE PROBLEM

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THE CANDLE PROBLEM

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THE CANDLE PROBLEM . . . AGAIN

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“As long as the task involved only mechanical skill, bonuses worked as they would be expected: the higher the pay, the better the performance.”

D. ARIELY, U. GNEEZY, G. LOWENSTEIN, & N. MAZAR, Federal Reserve Bank of Boston Working Paper No. 05-11, July 2005; NY TIMES, 20 Nov. 08

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But once the task called for “even rudimentary cognitive skill,” a larger reward “led to poorer performance.”

D. ARIELY, U. GNEEZY, G. LOWENSTEIN, & N. MAZAR, Federal Reserve Bank of Boston Working Paper No. 05-11, July 2005; NY TIMES, 20 Nov. 08

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“In eight of the nine tasks we examined across the three experiments, higher incentives led to worse performance.”

D. ARIELY, U. GNEEZY, G. LOWENSTEIN, & N. MAZAR, Federal Reserve Bank of Boston Working Paper No. 05-11, July 2005

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“Our [previous] sales salary system felt like . . . a gigantic, complex and medieval spirograph centered on an assumption that wasn’t true.”

NEIL DAVIDSON, CO-FOUNDER, RED GATE SOFTWARE

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FACT:Money is a motivator.

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MASTERY

AUTONOMY

PURPOSE

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MASTERY

AUTONOMY

PURPOSE

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TEAM

TIME

TASK

TECHNIQUE

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FEDEX DAYS

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20 PERCENT TIME

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“Just about all the good ideas here have bubbled up from 20 percent time.”

ALEC PROUDFOOT, Google

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Turn your next offsite into a FedEx Day.

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MASTERY

AUTONOMY

PURPOSE

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“. . . enjoyment-based intrinsic motivation, namely how creative a person feels when working on a project is the strongest and most pervasive driver.”

Karim R. Lakhani & Robert G. Wolf, “Why Hackers Do What They Do: Understanding Motivation and Effort in Free/Open Source Software Projects,” in Perspectives on Free and Open Software, edited by J. Feller, B. Fitzgerald, S. Hissam, and K. Lakhani (MIT Press, 2005)

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“The key to motivation . . . doesn’t depend on elaborate incentive systems. (In fact, the people in our study rarely mentioned incentives.)

Teresa M. Amabile & Steven J. Kramer, “What Really Motivates Workers,” Harvard Business Review (Jan. 2010)

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“. . . making progress in one’s work.”

Teresa M. Amabile & Steven J. Kramer, “What Really Motivates Workers,” Harvard Business Review (Jan. 2010)

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DIY PERFORMANCE REVIEWS

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MASTERY

AUTONOMY

PURPOSE

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THE PURPOSE MOTIVE

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“A purpose bigger than your product (or service -Ed).”

MATS LEDERHAUSEN

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“He preserved the union and freed the slaves.”

“He lifted us out of a great depression and helped us win a

world war.”

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What’s your sentence?

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Was I better today than yesterday?

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MORE INFO

[email protected]

twitter.com/danielpink

www.danpink.com