| The management system of rewards and incentives for successful performance and punishment for lack-luster or poor performance does not work!! In fact, this management model of the ‘carrot and stick’ approach prevails in companies despite forty years of scientific research that shows it only works in a few isolated cases.
One of my coaching clients, a financial professional, who has over 20 years of experience in the industry, is a top producer in her agency and on target for a record year in 2009. Her long-time managing director believes in the ‘carrot and stick’ management style and for each of her good months of production, he has been giving kudos to her by sending encouraging emails and voice mails, and lots of personal attention.
Because of some underwriting issues, her last month was not on par despite the fact she is ahead of her goals for the year. This month there are no encouraging messages, in fact her manager has been snubbing her in the office. She told me he will be back in the recognition mode when her numbers come in for August but until then he ignores her.
She has endured this on-again off-again treatment for years, but because she runs her own office, has become outstanding at what she does, serves her clients well, and has created strong and meaningful relationships in her community, she is able to thrive despite his behavior. Most of the new people recruited into this agency don’t stay more than a year or two, so this managing director is constantly struggling to recruit more people and try keep them.
If the carrot and stick management doesn’t work well to motivate people, what does? Dan Pink, business guru, says that the new operating system that inspires people to be fully engaged, inspired and successful is made up of three key factors:
| 1. |
Autonomy - the ability to direct our own lives. Having a say in where we work, what we do and how we do it. |
| 2. |
Mastery - the opportunity to get better and better at something that really matters. |
| 3. |
Purpose - the yearning to do what we do in service of something larger than ourselves. |
How does that feel when you think about your life’s work?
Check out Dan Pink’s terrific video on the surprising science of motivation at this TED web site link.
|