how companies get motivation wrong

48
How Companies Get Motivation WRONG! Kurt Nelson

Post on 18-Oct-2014

26.871 views

Category:

Business


0 download

DESCRIPTION

7 common mistakes companies make when trying to motivate their employees - and how to fix them

TRANSCRIPT

Page 1: How Companies Get Motivation Wrong

How Companies

Get Motivation

WRONG!

Kurt Nelson

Page 2: How Companies Get Motivation Wrong

Many companies get

motivation right…

Page 3: How Companies Get Motivation Wrong

Many companies get

motivation right…

Yeah for them!

Page 4: How Companies Get Motivation Wrong

But many companies get

motivation wrong

Page 5: How Companies Get Motivation Wrong

And some get it spectacularly wrong!

Page 6: How Companies Get Motivation Wrong

And some get it spectacularly wrong!

Ouch!

Page 7: How Companies Get Motivation Wrong

And that’s not good

Page 8: How Companies Get Motivation Wrong

And that’s not good

Decreased Motivation Leads to:

Lower productivity

Higher turnover

Decreased sales

Lack of creativity

Page 9: How Companies Get Motivation Wrong

In our work with companies across the country, we have had the opportunity to examine why this

happens…

Page 10: How Companies Get Motivation Wrong

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

Page 11: How Companies Get Motivation Wrong

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

Page 12: How Companies Get Motivation Wrong

1. Focus too much on the drive to Acquire (i.e., the pay plan)

Page 13: How Companies Get Motivation Wrong

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

Page 14: How Companies Get Motivation Wrong

2. Don’t give front line managers enough discretion

Page 15: How Companies Get Motivation Wrong

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.

Page 16: How Companies Get Motivation Wrong

3. Don’t give front line managers enough tools

Page 17: How Companies Get Motivation Wrong

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

Page 18: How Companies Get Motivation Wrong

4. Making incentives too complex

Page 19: How Companies Get Motivation Wrong

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.

Page 20: How Companies Get Motivation Wrong

5. Rewarding the wrong things

Page 21: How Companies Get Motivation Wrong

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”

Page 22: How Companies Get Motivation Wrong

6. Not communicating enough

Page 23: How Companies Get Motivation Wrong

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.

Page 24: How Companies Get Motivation Wrong

7. Focusing on the “cost” of motivational programs – not the

results

Page 25: How Companies Get Motivation Wrong

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!

Page 26: How Companies Get Motivation Wrong

Does any of this sound familiar?

Page 27: How Companies Get Motivation Wrong

The real question is…

Page 28: How Companies Get Motivation Wrong

The real question is…

what to do about

this?

Page 29: How Companies Get Motivation Wrong

First recognizing where we tend to go wrong is key

Page 30: How Companies Get Motivation Wrong

First recognizing where we tend to go wrong is key

We just covered that…

Page 31: How Companies Get Motivation Wrong

Then we merge theory and expertise to develop solutions

using…

Page 32: How Companies Get Motivation Wrong

The 4-Drive Model Employee Motivation of

Lawrence & Nohria

2002

Then we merge theory and expertise to develop solutions

using…

Page 33: How Companies Get Motivation Wrong

Acquire

Bond

Challenge & Comprehend

Defend

The 4-Drives

Page 34: How Companies Get Motivation Wrong

Acquire

Bond

Challenge & Comprehend

Defend

We need to focus on ALL 4 Drives

together (not just Acquire)

Page 35: How Companies Get Motivation Wrong

Then give front line managers the tools, the training and the discretion

to use them effectively

Page 36: How Companies Get Motivation Wrong

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

Page 37: How Companies Get Motivation Wrong

Simplify, simplify, simplify

Page 38: How Companies Get Motivation Wrong

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

Page 39: How Companies Get Motivation Wrong

Conduct an analysis on what behaviors your reward programs are driving

Page 40: How Companies Get Motivation Wrong

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

Page 41: How Companies Get Motivation Wrong

And make sure that this is ALL

communicated with a PASSION!

Page 42: How Companies Get Motivation Wrong

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…

Page 43: How Companies Get Motivation Wrong

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.

Page 44: How Companies Get Motivation Wrong

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.

Page 45: How Companies Get Motivation Wrong

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!

Page 46: How Companies Get Motivation Wrong

Make sure that you don’t make

a motivational…

Page 47: How Companies Get Motivation Wrong

Take Action Today!

Page 48: How Companies Get Motivation Wrong

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