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Knowledge Work Incentives

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A presentation that I gave at the IRM BPM conference in London, June 2015

Published in: Business

Knowledge Work Incentives

  1. 1. Copyright Kemsley Design Ltd., 2015 1
  2. 2. Sandy Kemsley ● www.column2.com ● @skemsley Changing Incentives for Knowledge Workers Aligning incentives with the social enterprise
  3. 3. Agenda  Knowledge work: best when it’s social  Social business #fail  Intrinsic motivation  Knowledge work incentives Copyright Kemsley Design Ltd., 2015 3
  4. 4. How The Enterprise Became Social The shift in enterprise processes, attitudes and goals Copyright Kemsley Design Ltd., 2015 4
  5. 5. Social in the Enterprise  Enterprise social work patterns  Social interaction to strengthen weak ties  Goal-oriented social production  Social feature implementations  Standalone social platforms and networks  Built into core business platforms for “purposeful collaboration” Copyright Kemsley Design Ltd., 2015 5
  6. 6. Human Work Is Changing Copyright Kemsley Design Ltd., 2015 6 Routine Work Execute transactions Efficiency Compliance/standardization Process improvement Automation Knowledge Work Solve problems Collaboration User-created processes Assist human decisions Collect supporting artifacts
  7. 7. Knowledge Work Works Best When It’s Social Social Feature Enterprise Benefits Collaboration Exploit weak ties for knowledge sharing and social feedback = Improved decision-making User-created content Use and capture tacit knowledge = Improved processes Transparency Provide context for work = Improved problem-solving Copyright Kemsley Design Ltd., 2015 7
  8. 8. What Makes Social Business Social?  Social graph  User profile  List of connections  Network effects enrich community  Activity feed  Communication events between social graph  Collaboration events on artifacts  History of every process Copyright Kemsley Design Ltd., 2015 8 Source: Dion Hinchcliffe and Peter Kim, “Social Business By Design”
  9. 9. Why We Want Social Business 9 Source: Dion Hinchcliffe and Peter Kim, “Social Business By Design”
  10. 10. The Collaboration Dilemma What is limiting the adoption of social enterprise processes? Copyright Kemsley Design Ltd., 2015 10
  11. 11. Social Business Gone Wrong In spite of evidence that collaborative, dynamic, goal-directed processes can improve agility, profitability and customer satisfaction, many enterprises maintain a corporate culture and management style that does not incent workers for these activities. Copyright Kemsley Design Ltd., 2015 11
  12. 12. Social Business Adoption Failures  Management disables social features  Attempt to control workers’ activities  Results in “off the record” collaboration  Workers ignore social features  Insufficient training  Insufficient incentives to collaborate Copyright Kemsley Design Ltd., 2015 12
  13. 13.  Executives want collaboration across silos; management want work done on time  Performance metrics for efficiency, not service levels Copyright Kemsley Design Ltd., 2015 13 Misaligned Goals And Metrics
  14. 14. The Incentives Conflict Copyright Kemsley Design Ltd., 2015 14 “When an organization doles out bonuses, raises, awards and promotions based on individual contributions, what’s the carrot for social participation?” -- Gia Lyons, Jive Software Do the right thing What’s in it for me?
  15. 15. Aligning Incentives with Goals Changing why you work in order to change how you work Copyright Kemsley Design Ltd., 2015 15
  16. 16. Identifying Mismatch of Rewards and Goals  Intrinsic versus extrinsic motivations  Recognition versus monetary rewards  Team versus individual goals Copyright Kemsley Design Ltd., 2015 16
  17. 17. Source:Daniel Pink, “Drive” Rewards vs. Motivation Extrinsic Rewards for Algorithmic Work  Financial  Job security  Working conditions  Focus on profit maximization  Rewards short-term thinking Intrinsic Motivators for Heuristic Work  Enjoyment of work  Genuine achievement  Personal growth  Focus on purpose maximization  Rewards ethical behaviour Copyright Kemsley Design Ltd., 2015 17
  18. 18. Elements of Motivation  Autonomy  Task, time, team and technique  Mastery  Infinitely improvable  Purpose  Contribution to the greater good Copyright Kemsley Design Ltd., 2015 18 Source:Daniel Pink, “Drive”
  19. 19. Align Incentives with Business Objectives  Intrinsic motivation in addition to extrinsic rewards  Recognition for:  Problem-solving over efficiency  Valuable work outside job description  Recruiting problem solvers Copyright Kemsley Design Ltd., 2015 19
  20. 20. Boost Teamwork  Reward team goals as well as individual  Strengthen weak ties with dynamic, self- organizing teams  Encourage joint ownership of goals, activities to increase buy-in  Leverage social ties/pressure to adopt new ideas  Teamwork is not just “doing your job” Copyright Kemsley Design Ltd., 2015 20
  21. 21. Source: Alex Pentland, “Social Physics” Self-Organizing Teams vs Hierarchical Crowdsourcing Red Balloon Challenge  Time-critical search challenge  Reward team recruiters and problem-solvers  The people build the organization, then solve the problem Mechanical Turk  Pre-defined atomic tasks assigned to anonymous workers  No network interactions  No incentive to solve the overall problem Copyright Kemsley Design Ltd., 2015 21
  22. 22. Source: Ted Coine and Mark Babbitt, “A World Gone Social”; Frederic Laloux, “Reinventing Organizations” Flat Leadership For Greater Competitiveness  Workers are more engaged  Set goals and make decisions  More productive, less absenteeism  Freedom (and will) to innovate  Reduced “management tax”  Less hierarchy = reduced costs  Less bureaucracy = improved efficiency  Zappos, W.L. Gore, Basecamp Copyright Kemsley Design Ltd., 2015 22
  23. 23. The Metrics Of Knowledge Work Incentives Copyright Kemsley Design Ltd., 2015 23
  24. 24. Problem-Solving Metrics  Customer satisfaction  Time to achieve business goal (not just complete task)  Quality of decision/goal achievement  Correlate with degree of collaboration Copyright Kemsley Design Ltd., 2015 24
  25. 25. Enterprise Social Scoring  Social graph connectivity/strength  Indicator of collaboration  Detect/boost weak ties  Reputation-based recommendations  Social reputation  Indicator of contribution to community  Incorporate peer recognition Copyright Kemsley Design Ltd., 2015 25
  26. 26. Building In Social Incentives  Capture social metrics on systems of interaction  Social graph and interactions  Flexibility and innovation  Quality of decision/problem resolution  Peer assessment  Combine with traditional metrics  Immediate feedback with recognition and gamification Copyright Kemsley Design Ltd., 2015 26
  27. 27. Next-Generation Social Analytics  Evaluate (and reward) collaborative behaviors that:  Are aligned with organizational culture  Get work done  Assist others to achieve shared goals  Resistant to “gaming” by workers Copyright Kemsley Design Ltd., 2015 27
  28. 28. Summary Copyright Kemsley Design Ltd., 2015 28
  29. 29. Summary  Enterprise processes are inherently social  Misaligned goals and incentives will reduce success of outcomes  Organizational culture and management style may need to shift  Core social business technology is in place, but metrics are still catching up Copyright Kemsley Design Ltd., 2015 29
  30. 30. Questions Sandy Kemsley sandy@kemsleydesign.com www.column2.com @skemsley www.slideshare.net/skemsley Copyright Kemsley Design Ltd., 2015 30

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