Testpattern I've taken a lot of chiding lately about my obsession with Dan Pink and his new book “Drive” (review here.)  I have an innate dislike for any theory, point of view or idea that is so singularly adopted by the masses.  It always seems to me that when something gets that much airplay, there is something missing in the conversation. 

Black and white opinions are the arena of young minds.  

If time and experience teaches us anything it is that nothing is black and white.  Grey is the color of the world of thought and to truly understand and apply any principle one must take a look at both sides of an argument and develop your position based on both points of view.

When confronted with such “fan-boy” dedication to an idea I have to ask “why?”  Why is that opinion resonating so strongly with the group?  In other words, before I seek to tell them they are wrong, I ask myself why I might be wrong.  It’s not always easy to challenge yourself.  I have been wrong in the past (usually I find that I’m mistaken in that as well.)  

So I sat this weekend and asked myself what I was missing.  Why didn’t I jump on the bandwagon along with others as it relates to the discussion between motivation and incentives in the book "Drive?"

I came up with two things: 

  1. We are not talking about the same thing and 
  2. We like any theory that gives us control

Definitions Make Difference

Dan Pink in "Drive" is talking about what motivates us.  I’m talking about how companies can influence behavior.  

BIG, BIG, BIG difference.  

If a company wants to have “motivated” employees providing autonomy, mastery and purpose (AMP) are the tools to do that.  Motivation is how I feel toward something.  Motivation is my opinion – my desire.  Motivation is the internal yardstick I use to decide if I want to keep doing something.  If I don’t feel it – I stop doing it.  If it makes me feel good – I keep doing it.  The key word in all of that is “I.”

Motivation is not the same as offering an incentive.  Incentives are external awards “offered” contingent upon an outcome.  On this Dan Pink and I agree.  I also believe incentive programs do NOT provide motivation (collective gasp from the incentive industry here.)

Incentive programs provide direction.  

Incentive programs provide employees (and channel partners/consumers) with clues to what you as the sponsor think they should be working on/toward.  To say that an incentive program increases or decreases motivation is wrong.  Incentives are simply a way to communicate to your audience that you would like them to channel their behavior in a specific direction.  The audience still has the choice to accept the guidance – or not.  The participants in a program can determine if the award is valuable enough to them to make them want to change behavior.  The incentive doesn’t change motivation – it changes behavior.

Nothing in that previous paragraph has anything to do with motivation.  The audience is still internally driven to do what they want to do.  The incentive didn’t change their motivation.  The incentive gave them an ADDITIONAL target, reason, goal, over and above their internal drive.

Incentives and Motivation are not mutually exclusive.

As an organization you can have a work environment that allows employees to focus on autonomy, mastery and purpose – AND – provide them with incentives to communicate what you think is important within that environment.  Properly designed incentives guide an employee toward personal and organizational goals without disrupting their pursuit of mastery or purpose.  

Understanding that motivation and incentives are two distinct things will help you determine how best to apply them.  I agree that the “AMP” approach will create a much more engaged workforce.  Those three elements are hard to argue with.  When given the ability to do what we do best, and get better at it and do if for a purpose greater than ourselves we are motivated, engaged, heck you might even say fanatical about the work.

But from an organizational standpoint it is impossible to run a company without guidelines, goals and objectives.  We need to provide directional clues to our employees to ensure they know what is valuable and important in the organization.  Without external influence –ie: incentives – we lose an important tool for influencing behavior (notice I didn’t say motivation.)

The problem for most companies is they choose one over the other.  Companies decide to ONLY use incentives or – eschew incentives altogether.  Neither approach is correct.  Try to guide an organization of engaged employees without incentives and you have chaos.  Try to run a program with only incentives and you have unmotivated, mercenary, disengaged, automatons.  Neither is acceptable.

We Don’t Like To Be Controlled

My second thought was this… No one wants to believe they are being controlled.  Given the option between free will and control we choose free will every time.  Any theory that tells us that we are 100% in control of our destiny is attractive.  We don’t want believe we can be controlled.  And we rebel against it.  The concepts in “Drive” speak to our innate desire to be free.  Who wouldn’t want that?

Incentives speak to control.  I think that those that have sold incentive programs from the “Antecedents, Behavior, Consequences” (ABC) point of view are the biggest problem for the word incentive.   Which is BS in my opinion – we're not rats or dogs.

But we have free will (or so we think – check with Scott Adams from Dilbert fame – he doesn’t think we do) and the idea that an incentive program takes away our desire to do what we like, are good at and enjoy – is anathema.  

Correctly applied incentive programs can work in harmony with the “AMP” approach.  It’s just not as easy as lobbing an objective at the team and a trip to Cancun upon achievement. 

It’s an Issue of Proportions

Think of your strategy in this way:

Ampincentives
  

 

I’m going with this rule of thumb:  

If the “surface area” of your incentive applications exceed 50% of the work you’re doing to promote the “AMP” approach you’ll have problems.

Stop trying to do motivation – start using well-designed incentive programs to guide behavior within the AMP construct.  That is how you will achieve your goals.

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  • Scott Crandall

    Paul — If we think of a nautical analogy, motivation (“All motivation is self-motivation”) is the keel, and incentives are the rudder. The keel provides strategic direction and stability, the rudder provides tactical changes and correction.
    You’re right: they’re two different things which can either be complementary (in well-thought out, well-designed programs) or contradictory. Make sense? Makes sense to me.

  • http://profile.typepad.com/2of6 Paul Hebert

    Makes a ton of sense. I may have to borrow that analogy in my next presentation!

  • http://philwylie.blogspot.com/ Phil Wylie

    Great series of blogs about motivation and incentives, I’ve really enjoyed all of them and your critical approach to the theory behind the hype. Here’s a question to ponder- can you have an effective long term business in the absence of (AMP) motivation for your workers but with a fantastic incentive program? And what does a business with lots of motivation and no incentive look like? Of course having both well designed seems the best option, but if you had to pick between the two- one seems like a cutthroat sales environment while the other seems like a grassroots not for profit environment (excuse the black/white stereotype, just comparing), seems to me the latter seems like the best choice for creating a sustainable business model. I’m also intrigued by your comments that: “Incentive programs provide employees (and channel partners/consumers) with clues to what you as the sponsor think they should be working on/toward”- I agree, but wonder- if vision, mission and goals are all well communicated and aligned, don’t employees already know what they should be working on?
    Great blog- keep up the great posts!

  • http://profile.typepad.com/2of6 Paul Hebert

    From a sustainable standpoint I would agree that AMP is the best approach. In general terms mission/vision/values will drive behavior – and provide the boundaries for performance.
    However, incentives allow you to fine tune behavior as specific market/business issues dictate. Incentives focus behavior quickly and in today’s business environment – that can be as big an asset as a well-connected and engaged workforce.
    I’ve used this analogy before – the AMP approach is the gutters in a bowling alley – they are the boundaries for the company. Incentives are how you target the ball after the first throw – when you have a variable number and placement of pins. Throwing the ball in the same place only works if you get a strike. If you don’t hit them all on the first try you need to adjust – that’s what incentives can do for you.

  • http://davidburkus.com davidburkus

    Great series of posts. I do think Dan Pink lighted a fire of debate about motivation. However, we need to stay focused on one important factor: Pink only argues that incentives don’t work well for people who are already intrinsically motivated. Incentives still work wonders for those with repetitive jobs who are externally motivated.

  • http://profile.typepad.com/2of6 Paul Hebert

    In total agreement. A critical review of the book would show that incentives still work well, they need to be designed correctly and targeting them toward work that is already fulfilling is bad. But most folks don’t read these things critically – they jump on the bandwagon and apply this “new theory” as poorly as they applied the old.
    Good article on the Economist also saying similar things:
    http://tinyurl.com/yeroxee
    Thanks for the comments!

  • http://www.awardcertificateframes.com @designtwit

    Paul! Fantastic series. I learn so much about how to articulate this industry from you. What spoke to me was “directional clues … to ensure they know what is valuable and important in the organization”. Yes, motivation and incentive are not mutually exclusive. Those clues, with purpose, will find meaning in a business or organization. Thanks for questioning everything and making us all think!

  • http://brandonwjones.wordpress.com/ Brandon Jones

    Paul, I agree with you that motivation and incentives are not the same thing and cannot be thought of as equals. I do, however, disagree that incentives do not provide motivation. Without incentives, nothing in the world would be accomplished; workers work with the incentive of pay. All motivations come from individual needs. When a need is realized, the individual will be motivated to find a method to fill the need. The incentive will be the object that fills the need. Since the motivation is to fill the need, the motivation will be to obtain the incentive.

  • http://profile.typepad.com/2of6 Paul Hebert

    Thanks Brandon for the comment. My point was that too often we believe we are responsible for motivation, when in fact the individual we target has the motivation. You are right, we can provide an incentive – but the individual has to DECIDE to act – we didn’t give them motivation we gave them the opportunity to decide to be motivated. I know it sounds like picking nits but we get more effective with our programs if we stop thinking about people like dogs waiting for bells to ring and start treating them like people.

  • http://profile.typepad.com/2of6 Paul Hebert

    Appreciate the kind words.

  • Scott Crandall

    Paul — You are free to borrow anything I’ve got (rudder v. keel). I think your bowling analogy was a strike!
    I’m laughing here that many comments seem to be “assuming” that AMP is a given. AMP only comes as a result of a leadership-driven and -sustained culture . . . and that’s anything but easy — or usual.
    In fact, AMP (or its equivalent, in other terms) is sort of the “holy grail” of healthy, competitive cultures. So I don’t think it’s a good idea to dismiss other factors or inputs, assuming that AMP is going to handle our problems. AMP is the “Everest” of leadership. Don’t assume getting there will be easy or without some serious failures and do-overs.

  • http://profile.typepad.com/2of6 Paul Hebert

    Spot on Scott. I think the one thing that Pink’s book did was make it sound so easy to have an AMP based business. And it is the hardest way to run a business – from training to measurement – it would be difficult. Not to say we shouldn’t do it – but it is a destination and a journey. The incentive side (or Motivation 2.0) is still one of the tools needed to move folks in that direction. Thanks for the comment!

  • http://globoforce.blogspot.com Derek Irvine, Globoforce

    I like that differentiation, Paul — incentives do not provide motivation, they provide direction. I may need to riff on that in a future Globoblog post.

  • http://profile.typepad.com/2of6 Paul Hebert

    Look forward to it Derek – always enjoy your points of view. Thanks for continuing to engage on our site!

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