How Companies Get Motivation Wrong

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

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How Companies Get Motivation Wrong

  1. How Companies Get Motivation <br />WRONG!<br />Kurt Nelson <br />
  2. Many companies get motivation right…<br />
  3. Many companies get motivation right…<br />Yeah for them! <br />
  4. But many companies get motivation wrong <br />
  5. And some get it spectacularly wrong! <br />
  6. And some get it spectacularly wrong! <br />Ouch!<br />
  7. And that’s not good<br />
  8. And that’s not good<br />Decreased Motivation Leads to: <br />Lower productivity<br />Higher turnover<br />Decreased sales <br />Lack of creativity <br />
  9. In our work with companies across the country, we have had the opportunity to examine why this happens…<br />
  10. In our work with companies across the country, we have had the opportunity to examine why this happens…<br />And understanding is the first step in getting it RIGHT <br />
  11. Here is a short list that describes just a few of the more common mistakes that we’ve seen<br /> Focus only on money <br /> No manager discretion<br /> No manager tools<br /> Too complex <br /> Wrong measure<br /> Communication<br />Fixated on costs<br />
  12. 1. Focus too much on the drive to Acquire (i.e., the pay plan)<br />
  13. 1. Focus too much on the drive to Acquire (i.e., the pay plan)<br />Companies that do motivation right have a comprehensive plan that emphasizes more than just pay. They focus on:<br /><ul><li>Teamwork
  14. Work Environment
  15. Work/Life Balance
  16. Growth Opportunities
  17. New Challenges
  18. Commitment to Ideals
  19. Corporate Identity
  20. Broader Purpose for Employee</li></li></ul><li>2. Don’t give front line managers enough discretion <br />
  21. 2. Don’t give front line managers enough discretion <br />Front line managers typically have the greatest impact on individual employees perception about the company. <br />Limiting how they can motivate or not trusting them to do it right decreases their motivational effectiveness.<br />
  22. 3. Don’t give front line managers enough tools <br />
  23. 3. Don’t give front line managers enough tools <br />Companies that do motivation right provide their managers with:<br /><ul><li>Motivational Training (e.g., “How to Motivate 101”)
  24. Discretionary Reward Programs
  25. Easy to Use Reports
  26. Motivational Support from home office
  27. “On the Spot” Awards </li></li></ul><li>4. Making incentives too complex<br />
  28. 4. Making incentives too complex<br />While companies might want to make their IC plans more complex to try to ensure fairness or meet certain budget expectations…<br />The morecomplex and harder they are to understand, the less effective incentive plans are at driving behavior change. <br />
  29. 5. Rewarding the wrong things <br />
  30. 5. Rewarding the wrong things <br />Too often, companies good intentions can lead to rewarding the wrong behavior. The most common mistakes:<br />Rewarding things that are not in alignment with strategy<br />Reward things because they are easy to measure<br />Rewards have become entitlements and perceived as “unchangeable”<br />
  31. 6. Not communicating enough<br />
  32. 6. Not communicating enough<br />Highly motivating companies over communicate to their employees – regarding their: <br /><ul><li> Pay Plans
  33. Total Rewards Strategy
  34. Reward Culture
  35. Company Mission </li></ul>All of these are vital to a highly motivated workforce. <br />
  36. 7. Focusing on the “cost” of motivational programs – not the results <br />
  37. 7. Focusing on the “cost” of motivational programs – not the results <br />Focusing on the “cost” of a program is short sighted. <br />The real focus should be on the motivation that the program instills and the results or “lift” the program has on performance. <br />Cheapest isn’t always the best! <br />
  38. Does any of this sound familiar? <br />
  39. The real question is… <br />
  40. The real question is… what to do about this?<br />
  41. First recognizing where we tend to go wrong is key <br />
  42. First recognizing where we tend to go wrong is key <br />We just covered that…<br />
  43. Then we merge theory and expertise to develop solutions using… <br />
  44. Then we merge theory and expertise to develop solutions using… <br />The 4-Drive ModelEmployee Motivation<br />of<br />Lawrence & Nohria<br />2002<br />
  45. Acquire<br />Bond<br />Challenge & Comprehend<br />Defend<br />The 4-Drives<br />
  46. Acquire<br />Bond<br />Challenge & Comprehend<br />Defend<br />We need to focus on ALL 4 Drives<br />together (not just Acquire)<br />
  47. Then give front line managers the tools, the training and the discretion to use them effectively<br />
  48. Then give front line managers the tools, the training and the discretion to use them effectively<br />Tools:<br /><ul><li>Easy to use sales or performance reports
  49. Manager discretionary incentives (cash and non-cash)
  50. Simple “On the Spot” Awards
  51. Recognition programs – peer-to-peer, manager nominated, VP review
  52. Training on how to use rewards effectively / motivate employees </li></ul>Discretion: <br /><ul><li>Provide Managers with clear objectives
  53. Create rules that are flexible enough to accommodate Managers special situations
  54. Monitor only for bias and cheating
  55. Utilize online platforms to manage programs and provide flexibility
  56. Direct access to IC/HR team </li></li></ul><li>Simplify, simplify, simplify<br />
  57. Simplify, simplify, simplify<br />Rework your incentive plans to simplify them: <br />Reduce the number of items you’re paying on (3 or less is best) <br />Focus only on key results that people have control over<br />Simplify the math for calculating earnings/winning<br />Limit the number of qualifiers, multipliers, kickers or other factors <br />
  58. Conduct an analysis on what behaviors your reward programs are driving<br />
  59. Conduct an analysis on what behaviors your reward programs are driving<br />Conduct research to ensure that your programs are: <br />Driving behavior that is in-line with company strategy (e.g., profit not just revenue)<br />Measuring the appropriate results / behaviors and not just those that are easy to quantify<br />Have not become so entrenched that they are perceived as entitlements and not incentives<br />Leveraging (not duplicating) other incentives or pay plans in the behaviors they are rewarding <br />
  60. And make sure that this is ALL communicated with a PASSION!<br />
  61. And make sure that this is ALL communicated with a PASSION!<br />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…<br />
  62. 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. <br />
  63. 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. <br />A program that increases sales performance 1% at a $1Billion dollar company = $10 Million in additional sales<br />
  64. 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. <br />A program that increases sales performance 1% at a $1Billion dollar company = $10 Million in additional sales<br />That might just be worth a few extra thousand!<br />
  65. Make sure that you don’t make a motivational… <br />
  66. Take Action Today! <br />
  67. To find out more on how to motivate your employees <br />www.lanterngroup.com <br />or our blog<br />http://thelanterngroup.wordpress.com/ <br />©2009 The Lantern Group – use permitted with acknowledgement<br />

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