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November 19 - November 24, 2022
“When money is used as an external reward for some activity, the subjects lose intrinsic interest for the activity,” he wrote.5 Rewards can deliver a short-term boost—just as a jolt of caffeine can keep you cranking for a few more hours. But the effect wears off—and, worse, can reduce a person’s longer-term motivation to continue the project.
The Motivation 2.0 operating system has endured for a very long time. Indeed, it is so deeply embedded in our lives that most of us scarcely recognize that it exists. For as long as any of us can remember, we’ve configured our organizations and constructed our lives around its bedrock assumption: The way to improve performance, increase productivity, and encourage excellence is to reward the good and punish the bad.
“hygiene” factors—extrinsic rewards such as pay, working conditions, and job security. Their absence created dissatisfaction, but their presence didn’t lead to job satisfaction.
The second were “motivators”—things like enjoyment of the work itself, genuine achievement, and personal growth. These internal desires were what really boosted both satisfaction and performance and were where managers ought to focus their attention.
Lakhani and Wolf uncovered a range of motives, but they found “that enjoyment-based intrinsic motivation, namely how creative a person feels when working on the project, is the strongest and most pervasive driver.”
In the United States, for instance, partnerships, S corporations, C corporations, limited liability companies, and other business configurations all aim toward a common end. The objective of those who run them—practically, legally, in some ways morally—is to maximize profit.
found that external rewards and punishments—both carrots and sticks—can work nicely for algorithmic tasks. But they can be devastating for heuristic ones.
Partly because work has become more creative and less routine, it has also become more enjoyable. That, too, scrambles Motivation 2.0’s assumptions. This operating system rests on the belief that work is not inherently enjoyable—which is precisely why we must coax people with external rewards and threaten them with outside punishment.
instead of restraining negative behavior, rewards and punishments can often set it loose—and give rise to cheating, addiction, and dangerously myopic thinking.
Twain extracts a key motivational principle, namely “that Work consists of whatever a body is OBLIGED to do, and that Play consists of whatever a body is not obliged to do.”
To be clear, it wasn’t necessarily the rewards themselves that dampened the children’s interest. Remember: When children didn’t expect a reward, receiving one had little impact on their intrinsic motivation. Only contingent rewards—if you do this, then you’ll get that—had the negative effect. Why? “If-then” rewards require people to forfeit some of their autonomy.
“In eight of the nine tasks we examined across the three experiments, higher incentives led to worse performance.”
Rewards, by their very nature, narrow our focus. That’s helpful when there’s a clear path to a solution. They help us stare ahead and race faster. But “if-then” motivators are terrible for challenges like the candle problem. As this experiment shows, the rewards narrowed people’s focus and blinkered the wide view that might have allowed them to see new uses for old objects.
Adding a monetary incentive didn’t lead to more of the desired behavior. It led to less. The reason: It tainted an altruistic act and “crowded out” the intrinsic desire to do something good.
The problem with making an extrinsic reward the only destination that matters is that some people will choose the quickest route there, even if it means taking the low road.
Contrast that approach with behavior sparked by intrinsic motivation. When the reward is the activity itself—deepening learning, delighting customers, doing one’s best—there are no shortcuts.
“Goals may cause systematic problems for organizations due to narrowed focus, unethical behavior, increased risk taking, decreased cooperation, and decreased intrinsic motivation. Use care when applying goals in your organization.”
Offer too small a reward and the agent won’t comply. But offer a reward that’s enticing enough to get the agent to act the first time, and the principal “is doomed to give it again in the second.” There’s no going back. Pay your son to take out the trash—and you’ve pretty much guaranteed the kid will never do it again for free. What’s more, once the initial money buzz tapers off, you’ll likely have to increase the payment to continue compliance.
But companies pay a steep price for not extending their gaze beyond the next quarter. Several researchers have found that companies that spend the most time offering guidance on quarterly earnings deliver significantly lower long-term growth rates than companies that offer guidance less frequently. (One reason: The earnings-obsessed companies typically invest less in research and development.)23 They successfully achieve their short-term goals, but threaten the health of the company two or three years hence.
“The very presence of goals may lead employees to focus myopically on short-term gains and to lose sight of the potential devastating long-term effects on the organization.”24
if students get a prize for reading three books, many won’t pick up a fourth, let alone embark on a lifetime of reading—just as executives who hit their quarterly numbers often won’t boost earnings a penny more, let alone contemplate the long-term health of their company.
CARROTS AND STICKS: The Seven Deadly Flaws 1. They can extinguish intrinsic motivation. 2. They can diminish performance. 3. They can crush creativity. 4. They can crowd out good behavior. 5. They can encourage cheating, shortcuts, and unethical behavior. 6. They can become addictive. 7. They can foster short-term thinking.
supplementing the poster-packing rewards with three important practices:
Offer a rationale for why the task is necessary. A job that’s not inherently interesting can become more meaningful, and therefore more engaging, if it’s part of a larger purpose.
Acknowledge that the task is boring. This is an act of empathy, of course. And the acknowledgment will help people understand why this is the rare instance when “if-then” rewards are part of how your organization operates.
Allow people to complete the task their own way. Think autonomy, not control. State the outcome you need. But instead of specifying precisely the way to reach it—how each poster must be rolled and how each mailing label must be affixed—give them freedom over how they do the job.
“self-determination theory (SDT).” Many theories of behavior pivot around a particular human tendency: We’re keen responders to positive and negative reinforcements, or zippy calculators of our self-interest, or lumpy duffel bags of psychosexual conflicts. SDT, by contrast, begins with a notion of universal human needs. It argues that we have three innate psychological needs—competence, autonomy, and relatedness. When those needs are satisfied, we’re motivated, productive, and happy.
Human beings have an innate inner drive to be autonomous, self-determined, and connected to one another. And when that drive is liberated, people achieve more and live richer lives.
people oriented toward autonomy and intrinsic motivation have higher self-esteem, better interpersonal relationships, and greater general well-being than those who are extrinsically motivated. By contrast, people whose core aspirations are Type X validations such as money, fame, or beauty tend to have poorer psychological health.
In a ROWE workplace, people don’t have schedules. They show up when they want. They don’t have to be in the office at a certain time—or any time, for that matter. They just have to get their work done. How they do it, when they do it, and where they do it is up to them.
They were focused on the work itself rather than on whether someone would call them a slacker for leaving at three P.M. to watch a daughter’s soccer game. And since the bulk of his staff consists of software developers, designers, and others doing high-level creative work, that was essential. “For them, it’s all about craftsmanship. And they need a lot of autonomy.”
“If you don’t pay enough, you can lose people. But beyond that, money is not a motivator. What matters are these other features.”
Type I behavior emerges when people have autonomy over the four T’s: their task, their time, their technique, and their team.
“Hire good people, and leave them alone.”
“Those men and women to whom we delegate authority and responsibility, if they are good people, are going to want to do their jobs in their own way,”
However, encouraging autonomy doesn’t mean discouraging accountability. Whatever operating system is in place, people must be accountable for their work. But there are different ways to achieve this end, each built on different assumptions about who we are deep down.
It presumes that people want to be accountable—and that making sure they have control over their task, their time, their technique, and their team is the most effective pathway to that destination.
what people feel like they want control over really varies, so I don’t think there’s one aspect of autonomy that’s universally the most important. Different individuals have different desires, so the best strategy for an employer would be to figure out what’s important to each individual employee.”
We’re born to be players, not pawns. We’re meant to be autonomous individuals, not individual automatons.
In flow, people lived so deeply in the moment, and felt so utterly in control, that their sense of time, place, and even self melted away. They were autonomous, of course. But more than that, they were engaged. They were, as the poet W. H. Auden wrote, “forgetting themselves in a function.”
a study of 11,000 industrial scientists and engineers working at companies in the United States found that the desire for intellectual challenge—that is, the urge to master something new and engaging—was the best predictor of productivity. Scientists motivated by this intrinsic desire filed significantly more patents than those whose main motivation was money,
One source of frustration in the workplace is the frequent mismatch between what people must do and what people can do. When what they must do exceeds their capabilities, the result is anxiety. When what they must do falls short of their capabilities, the result is boredom.
Dweck’s signature insight is that what people believe shapes what people achieve. Our beliefs about ourselves and the nature of our abilities—what she calls our “self-theories”—determine how we interpret our experiences and can set the boundaries on what we accomplish.
As wonderful as flow is, the path to mastery—becoming ever better at something you care about—is not lined with daisies and spanned by a rainbow. If it were, more of us would make the trip. Mastery hurts.
“Many characteristics once believed to reflect innate talent are actually the results of intense practice for a minimum of 10 years.”11 Mastery—of sports, music, business—requires effort (difficult, painful, excruciating, all-consuming effort) over a long time (not a week or a month, but a decade).
mastery often involves working and working and showing little improvement, perhaps with a few moments of flow pulling you along, then making a little progress, and then working and working on that new, slightly higher plateau again. It’s grueling, to be sure. But that’s not the problem; that’s the solution.
“Being a professional,” Julius Erving once said, “is doing the things you love to do, on the days you don’t feel like doing them.”
Two days. Forty-eight hours without flow plunged people into a state eerily similar to a serious psychiatric disorder. The experiment suggests that flow, the deep sense of engagement that Motivation 3.0 calls for, isn’t a nicety. It’s a necessity. We need it to survive. It is the oxygen of the soul.
And one of Csikszentmihalyi’s more surprising findings is that people are much more likely to reach that flow state at work than in leisure. Work can often have the structure of other autotelic experiences: clear goals, immediate feedback, challenges well matched to our abilities. And when it does, we don’t just enjoy it more, we do it better.
he listens for the pronouns they use. Do the workers refer to the company as “they”? Or do they describe it in terms of “we”? “They” companies and “we” companies, he says, are very different places.