Download - How Companies Get Motivation Wrong
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How Companies
Get Motivation
WRONG!
Kurt Nelson
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Many companies get
motivation right…
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Many companies get
motivation right…
Yeah for them!
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But many companies get
motivation wrong
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And some get it spectacularly wrong!
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And some get it spectacularly wrong!
Ouch!
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And that’s not good
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And that’s not good
Decreased Motivation Leads to:
Lower productivity
Higher turnover
Decreased sales
Lack of creativity
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In our work with companies across the country, we have had the opportunity to examine why this
happens…
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In our work with companies across the country, we have had the opportunity to examine why this
happens…
And understanding is the first step in getting it RIGHT
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Focus only on money
No manager discretion
No manager tools
Too complex
Wrong m
easure
Comm
unication
Fixated on costs
Here is a short list that describes just a few of the more common
mistakes that we’ve seen
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1. Focus too much on the drive to Acquire (i.e., the pay plan)
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1. Focus too much on the drive to Acquire (i.e., the pay plan)
Companies that do motivation right have a comprehensive plan that emphasizes
more than just pay. They focus on:
• Teamwork
• Work Environment
• Work/Life Balance
• Growth Opportunities
• New Challenges
• Commitment to Ideals
• Corporate Identity
• Broader Purpose for Employee
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2. Don’t give front line managers enough discretion
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2. Don’t give front line managers enough discretion
Front line managers typically have the greatest impact on individual employees
perception about the company.
Limiting how they can motivate or not trusting them to do it right decreases their
motivational effectiveness.
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3. Don’t give front line managers enough tools
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3. Don’t give front line managers enough tools
Companies that do motivation right provide their managers with:
• Motivational Training (e.g., “How to Motivate 101”)
• Discretionary Reward Programs
• Easy to Use Reports
• Motivational Support from home office
• “On the Spot” Awards
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4. Making incentives too complex
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4. Making incentives too complex
While companies might want to make their IC plans more complex to try to
ensure fairness or meet certain budget expectations…
The more complex and harder they are to understand, the less
effective incentive plans are at driving behavior change.
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5. Rewarding the wrong things
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5. Rewarding the wrong things
Too often, companies good intentions can lead to rewarding the wrong behavior. The most common
mistakes:
1. Rewarding things that are not in alignment with strategy
2. Reward things because they are easy to measure
3. Rewards have become entitlements and perceived as “unchangeable”
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6. Not communicating enough
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6. Not communicating enough
Highly motivating companies over communicate to their employees –
regarding their:
• Pay Plans
• Total Rewards Strategy
• Reward Culture
• Company Mission
All of these are vital to a highly motivated workforce.
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7. Focusing on the “cost” of motivational programs – not the
results
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7. Focusing on the “cost” of motivational programs – not the
results
Focusing on the “cost” of a program is short sighted.
The real focus should be on the motivation that the program instills
and the results or “lift” the program has on performance.
Cheapest isn’t always the best!
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Does any of this sound familiar?
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The real question is…
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The real question is…
what to do about
this?
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First recognizing where we tend to go wrong is key
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First recognizing where we tend to go wrong is key
We just covered that…
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Then we merge theory and expertise to develop solutions
using…
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The 4-Drive Model Employee Motivation of
Lawrence & Nohria
2002
Then we merge theory and expertise to develop solutions
using…
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Acquire
Bond
Challenge & Comprehend
Defend
The 4-Drives
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Acquire
Bond
Challenge & Comprehend
Defend
We need to focus on ALL 4 Drives
together (not just Acquire)
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Then give front line managers the tools, the training and the discretion
to use them effectively
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Then give front line managers the tools, the training and the discretion
to use them effectively
Tools:
• Easy to use sales or performance reports
• Manager discretionary incentives (cash and non-cash)
• Simple “On the Spot” Awards
• Recognition programs – peer-to-peer, manager nominated, VP review
• Training on how to use rewards effectively / motivate employees
Discretion:
• Provide Managers with clear objectives
• Create rules that are flexible enough to accommodate Managers special situations
• Monitor only for bias and cheating
• Utilize online platforms to manage programs and provide flexibility
• Direct access to IC/HR team
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Simplify, simplify, simplify
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Simplify, simplify, simplify
Rework your incentive plans to simplify them:
1. Reduce the number of items you’re paying on (3 or less is best)
2. Focus only on key results that people have control over
3. Simplify the math for calculating earnings/winning
4. Limit the number of qualifiers, multipliers, kickers or other factors
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Conduct an analysis on what behaviors your reward programs are driving
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Conduct an analysis on what behaviors your reward programs are driving
Conduct research to ensure that your programs are:
1. Driving behavior that is in-line with company strategy (e.g., profit not just revenue)
2. Measuring the appropriate results / behaviors and not just those that are easy to quantify
3. Have not become so entrenched that they are perceived as entitlements and not incentives
4. Leveraging (not duplicating) other incentives or pay plans in the behaviors they are rewarding
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And make sure that this is ALL
communicated with a PASSION!
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And make sure that this is ALL
communicated with a PASSION!
Utilize live meetings, well done Power Point presentations, professional print and online communications, voice mails, flash e-mails, memo’s,
manager talking points, posters, etc…
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Finally – don’t let Purchasing focus you just on the direct cost of a program – make sure you look at how the program drives
motivation and results.
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A program that increases sales performance 1%
at a $1Billion dollar company = $10 Million in
additional sales
Finally – don’t let Purchasing focus you just on the direct cost of a program – make sure you look at how the program drives
motivation and results.
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A program that increases sales performance 1%
at a $1Billion dollar company = $10 Million in
additional sales
Finally – don’t let Purchasing focus you just on the direct cost of a program – make sure you look at how the program drives
motivation and results.
That might just be worth a few extra thousand!
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Make sure that you don’t make
a motivational…
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Take Action Today!
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To find out more on how to motivate your employees
www.lanterngroup.com
or our blog
http://thelanterngroup.wordpress.com/
©2009 The Lantern Group – use permitted with acknowledgement