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Workplace and Creativity The Shocking Truth

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Page 1: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

Workplace and Creativity The Shocking Truth

Page 2: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Choose the Best Answer…

Rewards and punishments correctly applied will guarantee good performance. Actually, supportive management and teamwork are essential to good performance, but you still need a reward system to back it up. Rewards and punishments actually do the opposite – they degrade performance.

10/10/2013 2

Page 3: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Yeah, You Guessed It.

Extrinsic rewards don’t work. They haven’t worked for decades. Business hasn’t caught up.

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It’s Stone Age technology.

Page 4: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

But if you treat them like sheep, that’s what you will get.

Rewards are good for routine tasks Not so good for heuristic tasks (freeform problem solving)

Lots of studies to back this up – we’ll review a few

People Aren’t Sheep

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Be creative and you’ll get extra pellets!

Page 5: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Transform interesting tasks into drudgery Encourage gaming of the system Impede creative thinking

Extrinsic Rewards Destroy Motivation

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Page 6: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Rhesus monkeys given simple puzzle didn’t wait to be rewarded in order to start fooling with it They clearly enjoyed the challenge! Adding a reward disrupted performance – slower, less interested Scientists were flabbergasted

Harlow-Deci Experiment

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Page 7: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Results replicated with people, too

Soma Cube puzzle Real question: What were people doing with their unstructured time? Rewarded group read magazines or walked off Unrewarded group kept fooling with it, purely for fun

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Page 8: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

The Candle Problem

A brain teaser Higher incentives led to worse performance Took them longer to figure it out They failed to see creative shortcuts

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Stick the candle to the wall so wax doesn’t drip on the table

Page 9: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Autonomy (How and When) Mastery (Challenge) Purpose (Why)

What People Really Want

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Unity - Self-Determination - Collective Work & Responsibility - Cooperative Economics - Purpose - Creativity - Faith

Interestingly, this is even reflected in the 7 Pan-African Principles of Kwanzaa

Page 10: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Type X vs Type I

X is Extrinsic motivation and behavior I is Intrinsic Most people have a mix of both

15% need rules and regulations 85% are self-motivated given the chance

Set policy for the 85%, not the 15% Straight-A students don’t always achieve in life… if good grades are all they thought about

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Page 11: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Workplace Applications

“Fedex Days” - Work on any problem you want Deliver something, anything, by the next day

People wanted more Couldn’t make enough progress in a one-off effort 5-20% unstructured time, ongoing

Islands of autonomy led to great inventions

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Page 12: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Inventions that Came from 20% Time

3M: Post-Its came from “bootlegging policy” Half of Google’s new offerings come from non-commissioned time – including Gmail Graphene came from “Friday evening experiments” Intuit software: 7 new apps Even nursing staffs can use it to improve service, morale, policies

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Page 13: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Bottom Up

Almost none of these inventions came from top-down directives They were acts of subversion One smart person couldn’t take it anymore and bent the rules

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Page 14: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

Things to Try…

Make time for noncommissioned work Conduct an autonomy audit Feedback: DIY performance reviews Peer-to-Peer rewards and praise Use noncontrolling language Start small and emphasize results

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Page 15: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

© 2013 Zep Solar, Inc. CONFIDENTIAL

The Zen of Compensation

Fairness Internal and external

Slightly more than average Takes money off the table

Metrics diverse, relevant, hard to game Even salespeople do better without a commission structure – who knew??

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Page 16: Workplace and Creativity · The Zen of Compensation Fairness Internal and external Slightly more than average Takes money off the table Metrics diverse, relevant, hard to game Even

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