Blanchard LeaderChat

The way you reward and recognize your people may be promoting some unwanted behaviors.  That’s because the use of extrinsic motivators (like money, perks, bonuses, and promotions) may change an employee’s focus at work and can also lead to a never-ending cycle of unfulfilled needs, unrealistic expectations, or an overdeveloped sense of entitlement. 

The bad news is that you may have brought the problem on yourself by the way you structured compensation, rewards and bonuses.  

Once you set people on a path of extrinsic rewards, you will need to prepare to keep increasing the pay, bonus, or promotions every year, or be prepared to disappoint people when you are not able to do so.  (A situation many companies find themselves in today.) 

Here are a couple of ways to minimize the downside when using these traditional forms of extrinsic motivation.

Keep things in perspective. You want to reward and encourage people who attain the goal—but you don’t want it to become the goal. You don’t want to hear people saying, “I’m just here for the money.”

Make sure the goal is self attainable.  If you are going to use extrinsic motivators, make sure that attainment is completely self controlled by the employee.  You don’t want a manager or supervisor dangling the reward in front of an employee like a carrot on a stick.  This is a coercive strategy that just encourages boss-watching and brown-nosing with people spending half their time making sure the boss notices what they are doing.

Deepen the experience. The tough economic times of the last two years have shown how shallow the employer—employee relationship has become in many organizations.  As Warren Buffet reminds us, “It’s only when the tide goes out that you learn who’s been swimming naked.”

Look beyond money (but still provide it) and then shift the discussion to linking individual work goals into larger organizational goals.  The task is to move people away from short-term transactional thinking and into something larger and more sustainable.  

Learn more

For specific strategies on how to make this happen in your organization, be sure to check out the following articles by Scott and Ken Blanchard at Fast Company

The Role Money Plays in Engaging Employees

Maintain A Startup Attitude for a Passionate Office

Managers: Set People Free to Promote Growth and Get Results

PS: On January 25, The Ken Blanchard Companies will be hosting a Leadership Livecast on the problem of Quitting and Staying.  Have you successfully addressed quitting and staying in your organization? Can you share it in five minutes or less?  Videotape yourself and send it to us.  You could be a featured speaker!  Click here for details.

Gallup’s latest report on The State of the Global Workplace 2011 identifies the levels of engagement and subsequent wellbeing of workers from over 120 countries.  It’s another great report from a pioneer in the field of employee engagement.  Overall the report shows that only 11% of workers are engaged, with 62% identified as disengaged, and 27% identified as actively disengaged. 

One item buried deep in the report was something that I hadn’t seen Gallup talk much about in the past.  In a section looking at implications for leaders, the report identified the two factors among the twelve that Gallup measures that are consistently among the lowest rated worldwide. Can you guess what they are?

I’ll give you a hint.  It’s something you can do personally and it won’t cost you a thing.

The two lowest rated items are, “In the past seven days, I have received recognition or praise for doing good work” and “In the past six months, someone at work has talked to me about my progress.”

In looking at why this might be occurring, Gallup researchers identified three possible causes

• Larger spans of control might be making it more difficult to give the kind of individualized attention required to ensure these needs are met.
• When it comes to jobs with a high degree of routine, feedback and recognition may be overlooked because managers do not differentiate individual contributions.
• It might just be that we are “…better wired to receive praise than to give it. We feel our own hunger more than we empathize with others around us.”

How are you doing with the praise and recognition of your people?  If you are a little rusty, here are three tips for getting started.

1. Make it timely.  Praisings are most effective when they are delivered as close to real time as powerful.  Don’t “save up” your praisings for a specified time.  Praise in the moment!
2. Give specific examples.  A general comment like, “You’re really doing good work,” is nice, but a praising that identifies a specific action is better.
3. Repeat often.  You really can’t overdo it—as long as you are specific and sincere in your praising.

For over 30 years, Ken Blanchard has asked audiences worldwide, “How many of you get too much praise at work?”  No one ever raises their hand.  We all have a deep-seated need to be recognized and appreciated.  Everyone enjoys a pat on the back.  Don’t be stingy with your praise.  Catch someone doing things right this week.  Guess what?  You’ll feel better too!

Everyone loves a bump in pay, extra time off, or other form of reward or recognition.  The problem is when managers start to rely on these types of extrinsic motivators too much and stop looking for the deeper intrinsic motivators that lead to long-term satisfaction and well-being at work.

Alfie Kohn first wrote about this in his book, Punished by Rewards: The Trouble with Gold Stars, Incentive Plans, A’s, Praise, and Other Bribes.  Daniel Pink picked up the banner most recently in his 2009 book, Drive: The Surprising Truth About What Motivates Us. 

In both cases, the author’s point to social science research conducted over the past 50 years which shows that money and other extrinsic rewards can actually reduce motivation and ultimately performance if not used properly. 

(For a great introduction into some of this social science research, check out Why We Do What We Do: Understanding Self-Motivation which summarizes the work of Edward Deci and Richard Ryan, two long-time researchers in this field.)

Three warning signs

Are you falling into the “if-then” trap as a manager?  Here are three warning signs:

1. Instead of trying to understand what really motivates your direct reports, you increasingly rely on a carrot approach where you dangle incentives in front of employees to get them to engage in desired behaviors.

2. Instead of taking the time to fine tune job roles and responsibilities, you take an approach of, “We pay you a fair day’s wage and we expect a fair day’s work in return.”

3. Instead of helping people connect their work to a higher purpose, you instead insist that they stay focused on their own task and leave the big picture thinking to senior management.

With this type of thinking, it’s easy to fall into a transactional mindset as a manager.  Now work becomes mostly about getting the next raise, bonus, or other prize.  Don’t let incentives and compensation become the de facto manager in your organization.  Go beyond “if-then” thinking to discover what truly motivates your people. It’s time well-spent that will pay long-term benefits!

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PS: Interested in learning more about creating a motivating work environment?  Check out these upcoming executive briefing presentations!

Creating an Engaging Work Environment: The Leader’s Role

The New Paradigm of Motivation: How to Make It Work

Over the past 30 years, renowned marriage counselor John Gottman has been able to predict with 90% accuracy which newlyweds he works with will stay married versus getting divorced after watching just 15 minutes of their interactions on videotape. 

The key factor that Gottman looks for is the ratio of positive to negative reinforcement that couples give to each other.  When the ratio is 5 to 1 positive, the couples report the overall relationship as positive.  Anything less than 4 to 1 and the relationship is perceived as negative. 

Why does it have to be slanted so heavily in the positive direction?  The answer is emotion.  The emotional response surrounding each praising or criticism amplifies its impact.  For most people, criticism is stinging and leaves a far larger emotional footprint than positive praising. 

Leaders can promote healthy relationships with the people who report to them by praising and reprimanding effectively.  Here are three tips.

1. Be timely. Nobody likes to deliver negative feedback.  But some managers have trouble delivering positive praising also.  Uncomfortable with the whole situation, these managers believe that by not communicating, at least they are doing no harm.  But the reality is that “not communicating” is sending a message.  If your boss never communicated with you about your work, how would it make you feel?  What message would it send to you?  People want to matter and they want to be noticed.  As a manager, it is your job to make sure that you are paying attention to your people.
2. Be specific. Feedback is best when it is specific.  A general praising of, “You’re doing a great job!” is nice, but a more specific praising of, “The way you ran that meeting today was fantastic.  You really did a good job of having all of the background information ready and also redirecting the discussion when it was getting off track,” is better.  When it comes to negative feedback, it is even more important to be specific.  Consider how damaging a comment like, “You really don’t seem to understand how we do things around here,” is.  Instead be more specific.  Say, “We have a very specific process for approving email that needs to be followed.  Anytime something new is created, please make sure I see it first and have a chance to review it before sending it out.”  This turns criticism into redirection—which is what you’re looking for.  Even though it will still hurt, you want to keep the focus on the behavior that needs to change.  If you don’t, the recipient will only remember how you made them feel and the necessary change will be an afterthought. 
3. Be aware of your emotional impact. Remember that negative feedback is serious business and carries five times the emotional weight as positive feedback.  Anytime that you find yourself having to deliver a reprimand, make sure that you follow it up with a reaffirmation of the person and their abilities.  This doesn’t mean that you backtrack or soften the reality of what needs to change, it just means a reconfirmation of your faith in the direct report to do better and your belief that they can change. 

By mastering the art of positive and negative feedback, managers can strengthen their relationships with direct reports.  Keep in mind both the quantity and the quality of the messages you deliver.  It’s an important skill that will keep people engaged and performing at their best.

The most prestigious leadership position this country has to offer is that of the President of the United States. And while it may be the most prestigious, few would disagree that it is also the most heavily scrutinized. Fair or unfair, public opinion of the President’s job performance shifts regularly due to any number of factors. Yet at any given time, we can quickly see what the general public thinks about the President’s job performance by looking at their approval rating.

I’ve always found this concept of a President’s approval rating to be fascinating. After all, it is extremely subjective and based on an incredibly small sample size but it is widely accepted as a relatively accurate reflection of how we all feel. This practice of using public opinion polls to determine an approval rating was introduced over 65 years ago by the Gallup organization and it’s hard to dispute their findings. In reviewing the historical approval ratings for the last dozen Presidents, it appears to be a pretty accurate representation.

My assumption is that a President doesn’t obsess over their approval rating. That said there must be value in having a quick snapshot of where you stand in the eyes of your people.  Imagine one day having a 90% approval rating, making an important decision, and then the next day seeing your approval rating drop to 40%. Obviously, there’s a take-away there that could impact your subsequent courses of action. Now that doesn’t necessarily mean you need to reverse your decision but perhaps it may cause you to re-examine your methods of communication regarding the decision you made.

This has me thinking about other practical applications for leadership approval ratings. Is there a place in corporate America for leadership approval ratings?  We regularly hear about the need for greater transparency in organizations. If your CEO were to begin tracking and publicizing their approval rating on your company intranet, what impact would that have on the organization and your CEO? Furthermore, if there’s value to be found in an approval rating for the President, or your CEO, wouldn’t there also be value to be found at other levels of leadership throughout the organization?

I’d be interested in hearing your thoughts around a corporate leadership approval rating in the comment section below. And, visit Why Lead Now tomorrow for part 2 where we’ll discuss ways for you to begin thinking about your own leadership approval rating.

Adam Morris is a featured blogger at Why Lead Now, one of LeaderChat’s sister blogs, focusing on the next generation of leaders.

How many of you get too much praising at work?  That’s a question that Ken Blanchard has been asking audiences for years.  When he does, almost no one ever raises their hands.  No one ever says, “I get so much praising at work, I wish they would just stop already.”  The reality is that most people will tell you that the only time they ever get any feedback on their work is when something goes wrong.  For the vast majority of people, work is a place where “no news is good news.”

That might make for an even-keel, consistent atmosphere, but that is never going to create the type of engagement and passion that so many workers are looking for today.

Why don’t more managers praise people for good work when they see it?  Here are a couple of common responses.

• “That’s what they should be doing.” 
• “They’ll expect more money if I do.”
• “I’ll say something next time I get a chance.”

That’s a lazy and short-sighted point of view.  What if your boss felt this way?  What if your boss noticed your good work and didn’t say anything because of these reasons?  How would that make you feel?  You’d probably feel unappreciated, focus only on the money, and put it on autopilot until performance review time.

Don’t let that happen in your work environment.  If you’re a little rusty with showing your appreciation, here are four tips for delivering the perfect praising.

1. Make it timely.  Praisings are most effective when they are delivered as close to real time as powerful.  Take advantage of the spontaneity and excitement of the moment.
2. Make it from the heart. Don’t over-think the praising.  Share what you are feeling. 
3. Give specific examples.  A general comment like, “You’re really doing good work,” is nice, but a comment like “That report you gave this morning was perfect, it clearly outlined our next steps, and did you see the way that the other executives responded? You really helped us to move this project forward with your work,” is better.
4. Don’t ask for more. A praising should never be used as leverage for additional good work out of an employee.  Keep it a simple expression of appreciation.

Everyone enjoys being recognized—especially from someone they look up to and respect.  Don’t be stingy with your praise.  Catch someone doing something right today.  You’ll be surprised at the difference in makes in their life—and yours.

There’s an old saying that, “People don’t really care what you know, until they know you care.”  This is good advice for leaders who often get caught up and lose focus while dealing with all of the performance pressures at work.  Sometimes it feels like you have to choose between focusing on people or focusing on performance.  This is a false dilemma.  As Ken Blanchard has advised over the years, the best leaders focus on both people and results at the same time. 

In case you’ve gotten off- track with this, here’s a short acronym to help you remember to stop and take the time to show that you CARE about the people you work with, and who report to you.

Connect. Take the time to lift your nose from the grindstone today and check in with your people.  How’s it going?  What’s happening in their life?  What are they excited about?  You might be surprised at how long it’s been since you checked in, or how much has changed in their lives.  Take a minute to reconnect.

Acknowledge. Listen to what people are telling you.  Truly hear what they are saying.  As a leader, it’s easy to get caught up in telling instead of listening.  How are your people doing on their tasks and key responsibility areas?  Chances are that they are just as busy as you are.  Take a minute to acknowledge the work they are doing and the effort they are putting into it.

Respect—the skills, effort, challenges, and needs that your people have.  What are their strengths?  What challenges are they facing? Where do they need help?  What can you do to help them succeed?  Don’t fall into the trap of thinking that your primary job is to evaluate performance.  As a leader, your primary job is to help your people succeed.

Encourage.  Everyone can use a kind word, a pat on the back, and a word of encouragement.  Who in your group has been up against it, fighting fires, chasing deadlines, and making sure that things get done?  Who seems burnt, or worn out, from all the work they’ve had to accomplish? Take a minute to show your appreciation, offer some encouragement, and let them know that you appreciate what they’ve been doing.

In today’s hectic work environment, it’s easy to neglect the people side of work.  Don’t let that happen to you.  Relationships are an important ingredient to an engaging work environment.  If you’ve been out of touch lately, use these four practices to reconnect and show people you care.

Why are videogames so addictive? Dr. Marjorie Blanchard of The Ken Blanchard Companies believes that there are three reasons.

1. The player is in control of their environment.
2. The player receives rewards and recognition on a regular basis.
3. The player experiences a sense of growth and mastery as they continue playing.

Employers can learn a lot about creating motivating work environments by studying video game design. Let’s take a closer look at each of these factors and how they can be incorporated into today’s workplace setting.

Read more…

Yes, you should let people know you care about them and appreciate them as work colleagues, but a recent article in the Wall Street Journal shows how confused some people can be when thinking about how to display caring and appreciation in the workplace.

In an article entitled Does Your Work Wife Get a Valentine? columnist Sue Shellenbarger looks at how some co-workers are showing affection for their “work spouse” with a valentine.  The article explains how men and women—who are already in a committed romantic relationship with spouses outside of work, also want to use Valentine’s Day to show their affection for their “work spouse,” a colleague that they have a close bond with.

And while the employees in the article make a case for why it is okay to acknowledge the special nature of their work relationships with a valentine, the response from readers has been mostly negative with most questioning the wisdom of doing anything that encourages people to combine recognition, caring, and appreciation with anything romantic.

So how does a leader or co-worker show that they care for someone at their company in the best sense of the word?  Here are three tips:

1.  Do it on any other day except Valentine’s Day.  Don’t confuse a strong professional relationship with a romantic one.
2. Check your motives.  Are you trying to show appreciation, recognition, and caring—or is there something more that you are trying to say? 
3. If it feels like you may be blurring the line, don’t do it.

Feelings have a place at work, but it has to be in the collegial sense.  Focus on recognition and appreciation and steer clear of any romantic aspect.  To read Shellenbarger’s complete article, click here.  To share your thoughts on the article, or offer tips on proper ways to show appreciation for co-workers, use the COMMENTS button above.

Organizations want their employees to be more intrinsically engaged at work.  They want their employees to be more creative, more innovative, and to take more risks.  One of the ways organizations are supporting these initiatives is through the use of incentives.  While incentives can be a good way to drive short term behavior, you have to be careful that they don’t undermine long term motivation in your organization.

In his book, Punished By Rewards: The Trouble with Gold Stars, Incentive Plans, A’s, Praise, and Other Bribes author Alfie Kohn points out that when reward and recognition is conditionally based, it can actually undermine performance by: 

• Setting up a competitive atmosphere where some people win while other people lose 
• Discouraging risk taking when employees fall back on what has worked in the past instead of trying new things which may or may not work 
• Eroding natural interest by replacing intrinsic motivators with extrinsic ones

Perhaps most importantly, improper use of rewards and incentives can sometimes get in the way of good management.  This happens when managers rely to heavily on the use of rewards and incentives instead of drilling down on the reasons why employees may not be performing up to level. 

For organizations looking to improve the creativity, innovation, risk-taking and intrinsic motivation of their employees, Kohn recommends that leaders focus on three areas: 

1. Rethink financial incentives.  Instead of putting so much emphasis on pay-for-performance, pay people a little more than industry norms and then do everything in your power to help them put money out of their minds. 
2. Reevaluate evaluation. Make performance evaluation an ongoing process instead of a once-per-year event.  Make sure that it is a two-way conversation that is separate from conversations about compensation. 
3. Create the conditions for authentic motivation.  Kohn recommends focusing on collaboration—helping employees work together, content—design meaningful jobs and help people find the value in their work, and choice—wherever possible, give people the opportunity to determine how the task will be accomplished.

Kohn is a provocative thinker in this area. For leaders looking for the complete picture on the use of rewards and recognition in their organizations, he offers a great alternative viewpoint on the use of incentives.  I highly recommend him to you and invite your thoughts and comments here.