The real drivers of human motivation (courtesy of Daniel Pink)

September 3rd, 2010

I stumbled across a podcast of Daniel Pink in my hard drive the other day who is a rewnoned specialist and speaker on human behavioural physics and motivation (fancy that?) who has studied over 50 years of human behavioural research. I found it all fascinating so I wanted to share it here too.

I think it will make businesses think about how they go about motivating staff beyond the rudimentary ‘carrot and stick’ management routine. You need to go deeper…here’s the topline things I got from his lecture:

There are 3 motivational human drivers:

Motivation 1.0: Biological drivers – drink, hunger, sex, shelter, warmth (the basics)

Motivation 2.o: Reward and Punishment drivers - as humans we respond exquisitely to rewards (more of the behaviour you want) and punishments (less of the behaviour) in our environment (aka “carrots and sticks”)

Motivation 3.0: Interesting, Greater Purpose drivers i.e. making a difference, contributing to society, continually striving to be better (this third driver often involves complex creative, heuristic work)

This 3rd motivational driver is however the most powerful. Yet the irony is that too many businesses often stop at the 2nd driver using elaborate systems of reward or punishment (aka management). “We’ll reward or incentivise you for the good behaviour and punish or disincentive the bad.”

Pink argues once you get past “rudimentary cognitive skills” or the basic algorithmic, mechanical, repetitive day to day stuff rewards, or carrots for better performance, don’t work.

“People’s nature is to be active and engaged. That’s our default setting when we come out of the box. Find me a 4 year old who isn’t active or engaged. This is real human nature. It’s our operating system.” says Pink.

He goes on: “We often make assumptions that aren’t true ie. people are fundamentally inert and passive unless we have carrots or sticks. The unequivocal fact is money is a serious motivator at work. If you don’t pay people enough  (fairness in pay) the 3rd driver, where the good stuff happens, will never work.”

He believes the very best use of money is to pay people enough so that the issue of money is off the table so they can stop thinking about the money and start thinking about the work.

He argues once you get past the stage of money, there are 3 things that come into play: Autonomy, Mastery and Purpose:

1. Autonomy 

Humans have a deep desire to be self-directed and manage their own destiny. However majority of management today is about controls and compliance. Ironically management is a technology invented in the 1850s during the Industrial Revolution and very few technologies invented in1850s we actually use today… 

Atlassian– an Australian software based company gives their workers 24hrs to work on anything they want. They  just have to show the results after those 24 hours. 1 day of pure autonomy  they call “Fedex days” because they have to deliver something overnight. 20% time after this has provided breakthrough products. Google has done the same with their team and now devotes the 20% rule out of which came Gmail and Google Talk came out (s0 you might ask what are they doing with the other 80%?).

Zappos – an online shoe company that sells shoes through their call centres (which usually have an annual turnover of nearly 100% i.e. treating people like lightbulbs – when they burn out, screw it). They provide 2 weeks of training and then their staff are invited ti leave now for $2000 using a negative carrot, filter. Otherwise they go to their desk within the call centre witthout scripts or time clocks and simply instructed to  “solve the customer’s problem”. They now have an annual turnover four times that of Four Season Hotels.

These types of businesses are using something called ROWE – Results Only Work Environments – who usually dedicate 20% of autonomous time to create something of value. Time to give it a try maybe within your business?

2. Mastery– humans love to get better at doing stuff e.g. playing an instrument at the weekend or nights doesn’t get you paid or get laid. Open source software – Linux, Apache, Wikipedia, WordPress behaviour – are all examples of mastery where people are doing non-paid work on their time and making a contribution. They’re giving their products to people for free because they enjoy the mastery of their craft. They enjoy it so it’s not seen as work, it’s more seen as play.

3. Purpose– humans also drive to be something bigger than themselves. Tom Shoes is a shoe company where if you buy a pair of shoes, they will give a pair to someone in the developing world. Why do they do this? They want to turn customers into benefactors. Disruptive categories. “Purpose motive” aligned with profit motive ok, otherwise good things don’t happen.

The Harvard Business Review states the biggest motivator at work is all about “making progress”. They alos define it as little not necessarily dramatic progress.

Skype states their progress as being disruptive but within the cause of making the world a better place.

“Put a ding in the universe” – Steve Jobs view on progress.

There is a famous “Candle, drawing pins and matches” social experiment by social scientist Sam Gluckburg where participants are asked to attach a candle to wall without wax dripping onto table. What should happen? People take the pins out of box, melt the candles in box then tack the box to the wall. 90% of people don’t get this right. When incentives come into play i.e. being paid, or incentivised, to complete the task faster it becomes the enemy of creative thinking process as participants weren’t picking up on lateral concept of seeing the box that holds the pins is a containment device that can also hold a melted candle. They narrowed their focus as they were more concerned with the reward rather than the process of creative problem solving which give them the outcome they needed.

Crude incentives, like here, limits people’s breadth of thinking – an almost myopic carrot focus – which ultimately affects their performance.

So how can apply this knowledge to the benefit of my business?

The challenge for you is to ask yourself what can you learn from this and apply to motivate your staff or sales teams more deeply and to a higher level of performance and creativity using these Motivaton 3.0 proven areas of autonomy, mastery and purpose?

I like the ROWE (results only working environment) case studies. Might just go and try it out right now…

Here’s a link to the podcast (about 28mins long but well worth it). I hope you like it as much as I did: Lecture on motivation_Daniel Pink (MPEG link) 

You can also check out his speech on video via TED

Advertising is the cost of being boring

August 20th, 2010

I love Hugh McLeod’s site where he constantly creates entertaining and insightful brand and marketing illustrations and artwork. They are great.

You can view his latest work here: http://gaspedal.com/hugh 

Here’s what Hugh has to say about advertising is the cost of being boring:

 

 

“If people won’t talk about you for free, you have to pay them to do it. There is a direct relationship between being buzzworthy — earning word of mouth — and how much you’ll have to pay to promote yourself through paid marketing.

Give people a reason to talk about you for free, or you’ll have to buy advertising to get the message out.

It’s easier, more fun, more rewarding, and more profitable to focus on being remarkable and earning the type of fans and followers who will promote you, for free, forever.”

Couldn’t have said it better myself Hugh. That’s why I didn’t! (St John).

There is a very simple reason reason why advertising doens’t work. The old rules of the game no longer apply. You can’t spend more to get people to listen to you more. We call that “barketing” as opposed to marketing (we also call it stupid).

People, due to sheer noise and volume of advertising and self-claim inflations are doing their very best to ignore you and your messages (even if they happen to be different).

Advertising no longer works. You have to think differently about how you promote and market your business to a cynical, apathetic consumers.

Facts: 78% of people trust peer recommendations yet only 14% of people believe advertising 90% of people skip ads using Tivo/My Sky or DVR (Nielsen Media Monitor US May 2010)

Got it yet? They don’t want interruption. The balance of power has switched. They want to be in control (which includes their remote).

The “Attention Blockade”

This is a new coined term but a real reality. Consumers are consciously choosing to block out the 1500+ messages they get bombarded with each day – mostly because they are irrelevant (the obvious exception being Google). Unless your messages are relevant, meaningful and timely forgot it. You just annoy and pollute the channel or medium  you’re using making it less effective next time (aka Law of Diminishing Returns).

Think differently otherwise all you’re doing is “barketing” (as opposed to marketing) and wasting precious dollars.

Fighting noise with more noise is like trying to put a fire out with petrol.

“Holy Shit numbers” (the numbers that matter)

August 12th, 2010

 This is an excellent Havard Business Review article I stumbled across whilst surfing the web called Numbers that Matter

Advertising agency Draft FCB recommends 3 strategies to help with using numbers to transform or break through the normal hum drum of business communications (you know the ones we actively try to avoid each and every day because it is the utterly boooooring, so-what, same old, same old BS we’ve seen a hundred times):


1. Juxtapose
(e.g. we’re in front of whiteboards for 4hrs a day but only use them for four minutes)

2. Re-frame
using an equivalent length, time, known entity (e.g. the NZ Government suggested proposed mining on Dept of Conservation land would be the size of a postage stamp on Eden Park)

3. Turn them upside down
(a 2%  response rate might be acceptable but what about the 98% who didn’t respond at all)

The guys at DraftFCB argue you need to ask “Is it fit for human consumption?”. That is, is it expressed in a way that others will not just be able to take in, but that will actually make them hungry to do something with it?”.

They call it the “Holy Shit” number:

  • 70% of teens who abuse prescription drugs get them from home.
  • 80% of women plan to exclusively breastfeed; only 20% actually do.
  • We’re in front of whiteboards 4 hours a day, but only use them for 4 minutes.
  • 80% of people age 45+ consider changing careers; only 6% actually do.
  • I like their thinking here. What do you think?

    Brand it like bands

    August 5th, 2010

    If bands have such a powerful affect on their fans, why can’t brands achieve the same with their customers?

    Bands produce more than music. They create deep emotional connections with their fans. They give them want they want and leave them wanting more. Fans are the customers and the music is the product.

     

    Take mega-bands like ColdPlay, U2, Led Zeppelin or Radiohead. They have legions of worldwide fans and record companies at their mercy (and if not they create their own). These mega brands provide their fans with the music they want to hear, share, recommend or cover. What they do extremely well is reinvent themselves to keep their fans engaged. Something some brands aren’t so good at.

    So how can your product or service become a sell-out?

    • does your product or service move your customer in the same way music does?
    • think about what you produce and how you can continually improve it (don’t be a one hit wonder)
    • what can you do with your brand to make it resonate at a deeper level so they become a huge fan of your product and promote it to others just like them)
    • think about your customer so they become a legion of unswervingly loyal, all night queuing fans
    • think about your name – Led Zeppelin, Thirsty Merc or just Chas n’ Dave?
    • don’t rush product development, a great band will take their time to produce that killer album (and it’s often worth the wait)
    • who can you partner with to make your next album rock ? (Karen Walker and Swandri or Missy Elliot with Adidas)
    • surprise and delight your fans with the unexpected. Whether it’s Bono calling The Pope live from Wembley or Flight of the Conchords playing to a packed crowd at their local video store, good bands go the extra mile
    • recognise and acknowledge your fans – give them something special to reward them for their loyalty like early bird tickets, new releases, bonus tracks or a back stage pass (spot upgrades Air NZ?)
    • are the critics your fans too? (blogs, media, Consumer, NGOs)
    • is your record label (shareholders) buying you?
    • make your CEO a rock star (excluding busted up hotel rooms). Give them new material or stories as anthems to sign to the masses
    • will your fans beg, steal or borrow to attend your concert?
    • will you leave them with an unforgettable experience that leaves them raving for years to come?
    • does your brand get critical acclaim and rave reviews?

    Take Apple. Through their products (iPod) and services (iTunes) they’ve successfully associated themselves with music. As a result they’re driving a hip, street and in-tune brand. They epitomise cool (or at least the perception anyway). They’ve learnt the power of association with music and bands.

    So take a leaf, or piece of vinyl, from your favourite band and think how your brand could be their band. And remember you’re only as good as your last gigs. Without fans, where would you be?

    Why objectivity should win over subjectivity every time

    July 30th, 2010

    I am still amazed how many times I see subjectivity (aka strength of business owner/management personality) win over objectivity (brand). The lesson is simple. Unless you are the brand (Branson, Roddick, Seth Godin, Jamie Oliver) you measure and assess your actions and behaviours against the brand, not yourself. Making the commitment and discipline to define your brand means you can make the right, objective decisions that will reinforce your brand rather than the wrong subjective decisions that will dilute it.

     
    So why is defining your brand so important?

    • Through the discipline of documenting and defining your brand on one piece of paper (any more is a work of fiction and un-useable) means it remains intact, strong and defended vs. diluted, confused and weak. As people come and go the brand stays strong.
    • A well defined brand means decision making is made that much easier and faster. Instead of the petty ”I’m right and you’re wrong” subjective routine, the conversations moves to a higher, more strategic level of “is this on-brand or off-brand”. The brand is your yardstick.
    • Having a strong brand pre-qualifies everyone like staff, customers, partners because they know who you are and what you stand for so they know if they fit or are aligned which saves you time and money. Think Emirates, Greenpeace, Raffles, Harley Davidson.
    • Knowing who you are and what makes you different means you stand out amongst the noise and clutter because you have clarity in your communications. If you’re not different you’re the same and no one has a reason to choose you or buy from you. Be clear what value your brand offers over others.
    • Define your brand by Purpose (why you exist and why you matter), Single Organising Idea (the one thing that you want to be known or famous for), Values (the things you believe in) and Supporting Behaviours (they way you act and conduct yourselves). We all need to remember that values are just another bunch of the same old, same old words in the absence of defined behaviours.

    The best defintion I have found for brands comes from Al Ries and Jack Trout’s 1981 book: Positioning: the battle for your mind where they argue ”a brand is a position in a person’s mind”. No mention of a logo or visual identities anywhere. They discuss the need for companies to own a clear position in the mind of consumers and the importance of being first as no one remembers who was second. Make sure you read it. Positioning is very much the 5th P.

    Defining your brand doesn’t have to mean big, long convoluted workshops, more just one important piece of paper you can work off and refer to whenever you need to. It might just be one of the most valuable things you create.

    So don’t accept subjectivity. Do the right thing and define your brand dilligently so decisions are made objectively and strategically. Your business will be better for it and you’ll make the right decisions quicker so you can get on with making your competitor’s lives even tougher.