Incentive intelligence how to design a good incentive program

Incentive 101
Contrary to popular belief.... ...incentives are tough to design

So why do we have bad incentives?

Everyone Is An Expert
We think we’re like everyone else
We look at “popular” design schemes and assume they are “right”

Too much reward – not enough reality

Too much results... not enough behavior

Too much time...
Temporal Discounting....

Incentives are Choices

How Do You Design an Effective Incentive?
A good incentive program understands people ....

And people are...
Rational and Irrational
Economic and Social
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Understands Behaviors
“Until you can ladder your way down from a change idea to a specific behavior, you’re not ready to lead a switch.
To create movement, you’ve got to be specific and be concrete.”
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Examples of Behavior VS Results
Results
Behaviors
Sell 100 Units
Lose 10 lbs
Make 10 Cold calls each day
Call 5 companies that do business with your competition
Eat meals with only 600 total calories
Spend 1 hour walking

Understands Time

Understands “Events” vs. “Value”
"Despite this strong preference for cash, the gift in-kind has a substantially stronger effect on workers' productivity than the cash gift.
This suggests that the monetary value of the gift is of lesser importance than its signaling character."
The Currency of Reciprocity ... Gift-Exchange in the Workplace

Understands Progress = Motivation
Redemption rate was 19%
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Understands Progress = Motivation
Came back more often
Time between washes got shorter and shorter as they got closer to free
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A good incentive program...
... Involves many behaviors rewarded quickly in small amounts over time accompanied by genuine recognition and demonstrable progress toward the goal.
www.i2i-align.com

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Incentive intelligence how to design a good incentive program

by i2i on Apr 25, 2011

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Incentive intelligence how to design a good incentive program — Presentation Transcript