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Incentives
4/29/09
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Incentives
Copyright 2009, Ara Bouloutian. All rights reserved. No part of this document may be photocopied, reproduced, or translated into another language without the prior written consent of the author.
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Incentives RULE #4: INCENTIVES
Incentives are the things we do to encourage people to want to perform at the highest levels.
THINK 1. EXPECTATIONS Objectives Sub objectives Job description
2. PROCESSES 3. RESOURCES Equipment Tools People Space/Environment Budget
4. INCENTIVES Compensation Communications Recognition Objectives Control
5. SKILLS-TRAINING 6. FEEDBACK 7. MOTIVATION
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Incentives INCENTIVES
QUESTIONS TO ASK
1. Are incentives in place for optimizing performance? 2. Is compensation reasonable and competitive? 3. Does the leader and team communicate in a way that earns respect and cooperation? 4. Does the leader and team follow a communication process? 5. Does leader employ positive tactics in leading team? - Does leader view workers positively, support them, listen and acknowledge their ideas? Does leader give credit and commend people for achieving or exceeding their objectives? - When objectives are not attained does the leader encourage and help vs. criticize? - When rules are violated, are people given the opportunity to describe the problem, match it to job description and offer a solution? - When people leave organization, does leader make parting a positive and productive event? When someone is to be terminated, is it handled in an encouraging manner? 6. Is there a recognition/reward system matching the value of the performance delivered? 7. Are the objectives reasonable and attainable? - Do the people believe the objectives are reasonable and attainable? - Does the leader believe the objectives are reasonable and attainable? - Does upper management believe the objectives are reasonable and attainable? - Do workers participate in planning the objectives as a means of making them stakeholders? 8. Are team members given adequate control over their work environment?
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Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A
Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A
INCENTIVES
Are incentives in place for optimizing performance? Objectives, processes, and resources may be perfect, but if effective INCENTIVES are lacking, performance problems can surface.
There are five types of incentives depending on what is needed to produce the desired motivation. COMPENSATION - Reasonable compensation, bonuses, stock options, pensions, etc. COMMUNICATION - Positive and encouraging communications. RECOGNITION - Recognizing good performance with ―a pat on the back‖ and other awards that nurture and provide internal drive. OBJECTIVES - Assigning reasonable and achievable objectives. CONTROL - Providing reasonable employee control over their own work.
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COMPENSATION
Is compensation reasonable and competitive? Compensation is an incentive or de-incentive depending on its perceived fairness. If someone were paid less than livable wages, it would provide little incentive to perform. So a big part of the game is to determine what is reasonable. And that is based on what is paid to people in similar roles within and/or outside the organization. In sports, compensation is a strong incentive for producing motivation to excel. In golf the large purses of major tournaments draw the best of the golf pros. Also in football, baseball and other sports, enormous amounts of compensation are paid to the very best of performers. Profit sharing, stock options, pensions are forms of compensation that are incentives for retaining employees. As part of a well planned incentive system it will include qualification rules impacting the nature and size of the incentive, based on value of the performance delivered. Compensation can contribute to high labor costs. Developing efficient processes and resources lead to major improvements in productivity, which can substantially reduce cost of labor.
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PLAYING THE GAME There are two top 300 companies—“A” and “B”. A person in “A” was in a training position and hoped to fill the top management job. In Company “B” a person holding the same job also wanted the manager‟s job. In both cases, the decision makers were not comfortable with their own people. As a result, they chose to interview outside candidates. As it turned out, Company “A” hired the person from “B”, and Company “B” hired the person from “A”. You might say a one in a million situation. Both companies paid far more than if they had promoted the same people from within. Further they also paid for relocation and other expenses. Frequently, employees are ―labeled‖ and underestimated. Companies may hire an outsider they know little about – no ―labels‖. The upshot is each company hires someone they know less about than the person they had. In this case, not being known becomes an advantage. In the example, both individuals were knowledgeable of their company. When they joined each other’s company both completed a time consuming and expensive learning curve to learn what the other already knew. It may not make any sense, but that’s what can happen when people are ―labeled‖. Frequently it can be politics or quibbling over an amount of money that is trivial when compared to getting a new person on board and up and running.
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COMMUNICATION Does the leader and team communicate in a way that earns respect and cooperation? Of all the elements in the model, communication is the most complex. Not to understand, but to actually put into practice. How employees and leaders relate in the workplace has a direct impact on incentive and therefore performance. The term ―boss‖ was used for years and implied telling people what to do. ―Do as you’re told‖ was the rule. It compared well with the expression, ―Children should be seen and not heard.‖ Combine that with criticizing and/or ignoring, and there is little incentive to excel. Industry has learned that positive attention is a primary driver causing people to attain and exceed their objectives. Adults have qualities similar to children. Pay attention to them and they perform; ignore them and they perform less. The good parent or leader has that magic ingredient that is so hard, if not borderline impossible to teach. It’s having the good fortune of instinctively balancing encouragement, playfulness, helpfulness, and constructive discipline. This is commonly referred to as ―Good Chemistry‖. In sports having good chemistry is crucial to winning. In golf the better the relationship between the golfer and caddie, the better the support, the better the performance. The relationship between pro golfer and the audience is crucial. The better the relationship and good feelings from the audience can inspire play. In football good communication between players and coach is vital. A coach who listens to his players will gain insights into strategies he may not think of. The same applies to the quarterback, who is generally the on field leader. A quarterback who has good rapport will manage an open dialogue with players, which will produce winning ideas.
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COMMUNICATION (continued)
Having good chemistry is one indicator of leadership potential getting things done. When communications are poor, chances erosion in a relationship will develop (bad chemistry). Having chemistry is a big indicator of a lack of leadership skills and potential for performance problems.
and are bad the
Surely you have been involved in discussions about people having good and bad chemistry. Good chemistry is about earning respect by behaving as a cooperating and contributing member of a team and encouraging others to participate. Once a person earns respect, cooperation follows almost automatically. It’s what makes for good relationships, which is directly related to thriving and growing at whatever you choose to do in life. Those who COMMAND respect are authority figures. Those who EARN respect, are leaders. When it comes to communications or good chemistry, it has little to do with ones title or whether a person is at the lowest or highest level in an organization. On rare occasion people might learn through some means to become reasonable communicators, but in the very great majority of cases good chemistry is a natural characteristic, a talent, that a person brings to a job or any activity in life. Though this is a rule that holds up rather well, those who have a passion and drive to improve can make it happen with hard work. As a way of providing some help in that regard, the following is an exercise that may be helpful.
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DISCOVERY EXERCISE Let’s figure out what is involved in developing good chemistry. The question is why do communications break down in the first place? For one thing know that everyone has a point of view about most things. In a sound relationship, two or more people feel free to express themselves without the sense they are out of line. However, if one party, regardless of rank, takes too much control over the conversation, it can produce resistance. This kind of tension generally leads to less communications and a diminishing relationship - bad chemistry.
Here is an exercise you can try with anyone. Read through it first and you will grasp what it is all about. Ask one, preferably several people, to hold their hands up in front of them so their palms are open and facing you. Next, quietly walk up to one of them and place your hand against theirs.
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Next without saying a word, press lightly against his/her palm. Pressing against the person’s palm can be light enough that no one else will notice it, but it needs to be enough to be clearly felt. Instinctively the great majority of people will push back against your palm, even though you did not ask them to do so. If the person does not push back, press a little harder until s/he does. If you move quickly and quietly from person to person and do the same thing without saying a word, 98% of the people will generally push back, sometimes quite vigorously. As a rule people push back with about the same pressure you apply. It will almost always happen…otherwise the person may be falling backward. No matter what happens, say nothing and keep moving quickly from person to person. The key is to do the exercise without expressing what you are doing. A very small minority may do nothing, and some the opposite—push back aggressively. If a person does nothing it may be a sign of a personal issue, but since we are not psychiatrists, it’s better to ignore those cases. When finished pressing against the palms of a number of people, seek out answers from each to the following questions: ―When I put my palm against yours, what did I do?‖ S/he will typically say, ―You pushed me.‖ Ask: “And what did you do?” The person will say, “I pushed back”. Ask: “Did I ask you to push back?” The person will say, “No”. Ask: “Then why did you push back? I didn‟t ask you to do that.” The person will usually say, “Because you pushed me.”
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The exercise demonstrates people’s natural defensive instincts. People instinctively resist when being imposed upon, and when pressing against another person’s palm, you are imposing your will. The point is, everyone has a view and they want to express it. When you press you are expressing your point of view. When they push back, they are resisting and expressing their view. Whether subordinates, superiors, peers, or customers they will resist; it’s a natural built-in human reaction. So when someone imposes their view, they frequently experience resistance - pushing back. Therein lies an explanation for the commonly used term, ―push back‖. Pushing back is also important because it can provide vital feedback. However, if it happens too often, rather than give and take, it might be an indicator of problems communicating - bad chemistry.
“The more balanced the „give and take‟ the less severe the resistance.”
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Personalities and relationships dictate kinds of resistance. An aggressive person might resist by blurting out, ―You’re wrong‖. A timid person may say nothing, but mentally shut down and hold back his/her view. Another might say something as simple as, ―That’s interesting‖, which can just be a way of not wanting to deal with the issue. In any of these cases progress slows or stops. Whether young or old, the response is generally the same; people have their own ideas about everything and want to express them. If they can’t, they tend to become frustrated and resist. Generally the more secure a person feels the less threatened s/he will feel when someone is pushing back. If a person tends to have good chemistry they will tend to get constructive ―push backs‖. By the same token if one tends to have ―bad chemistry‖ they will tend to get back not so constructive ―push backs‖. In other words, “You get what you give.” So, the nature of the push backs a person receives over time can be an indicator of producing good or bad chemistry. Actually if people are very close and have very excellent chemistry, the ―push backs‖ can be quite mutually vigorous. If this occurs and the people remain close, it’s a clear sign of the closest kind of relationship. This is common in healthy and tight knit families who might fight but always come away together. Attaining this kind of intimate relationship is as good as it gets.
”He who strikes the first blow, admits he‟s lost the argument.” Chinese Proverb
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PAINTING THE PICTURE Now that we have a basis for understanding resistance, here is an exercise for discovering ways to minimize resistance, producing harmony and cooperation. You’re about to become an artist. On the next page or separate piece of paper, take a couple of minutes and make a quick rough sketch of a house in a setting with mountains in the background. Don’t worry about your drawing skills. This has nothing to do with being an artist. PLEASE DON’T TURN TO THE PAGES FOLLOWING YOUR WORK UNTIL FINISHED WITH YOUR QUICK SKETCH. TURN THE PAGE AND BEGIN.
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Incentives MAKE YOUR SKETCH HERE
WHEN FINISHED TURN PAGE… AND DON’T TURN THE PAGE UNTIL YOU ARE FINISHED. 5/4/09
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Does your masterpiece look something like this masterpiece? There is no real right answer, so continue on.
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Study your sketch carefully. Is there anything in your sketch other than a very basic house in a setting of mountains? Did you make a path to the house, or a picket fence, or a garage, or trees around the house, or clouds in the sky, or smoke coming out of the chimney, or anything other than the most basic house in a setting of mountains? If you added anything other than what was requested, you were expressing or imposing your point of view on what was requested. You made your own assumptions about what is ―a house in a setting of mountains.‖ You were given a set of instructions on exactly what was wanted in the picture. They were given to you in a specific way, coming from a specific point of view. When you painted the picture your way, you expressed your point of view...you resisted. If you were to ask other people to do the same thing, you would find they would have made their house somewhat different as well. People have their own point of view and want to express it. When they can’t, they resist. Maybe each in a different way, but nevertheless, they resist. Does this mean we are never supposed to express our point of view? Of course not; but the key in life is knowing when and how.
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The exercise tells us not to be in a hurry to express our point of view – don’t jump in too quickly to PAINT THE PICTURE. Be patient. Let others paint their picture their way. When you let others paint first, you encourage participation and reduce chances of resistance. After all why would someone who is doing most of the talking want to resist their own view? When you let others paint the picture, you have everything to gain. If you don’t like the thoughts presented, you can always offer alternatives. The key is, by patiently listening, you learn, which gives you a distinct advantage in any conversation. Further, you project a mature, patient, leadership style. As a result, you tend to earn respect, which gives you greater credibility when you do express yourself Here is a simple rule for getting others to express themselves (paint): ―Talk no more than 1/3 of the time, so others talk 2/3 of the time.‖
For the strength of the Pack is the Wolf, and the strength of the Wolf is the Pack. Rudyard Kipling
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COMMUNICATION PROCESS
Does the leader and team follow a communication process? The most common activity, maybe upwards of 90% or more of ones time is in resolving a variety of day to day issues – in other words, problem solving. Here is a list of common tasks in need of resolution: * * * * * * * * *
Figuring out how to go about attaining an objective(s). Planning what things to accomplish today, this week, month, quarter, and year. Figuring out (troubleshooting) why something is going wrong. Discussing an issue with a customer. Coaching and giving feedback. Counseling a worker. Discussing the possibilities of having an after work party. Figuring out how to win a game of two-hand touch football. Baking a cake.
In other words, most things you do in life, in one way or another represent problem solving.
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COMMUNICATION PROCESS (continued) It may appear to be something of an exaggeration to suggest that so much of interpersonal communications involves problem solving, but when looked at closely you can see how problem solving is part of almost everything people do, including planning a job, figuring out which house to buy, figuring out the best piece of equipment to buy, planning chess moves, organizing a baseball team, planning a party, or any number of other activities. To accomplish any of the things on this and the prior page involves a set of simple steps. * * * * *
Identifying Issues Determining Solutions Determining Costs/Budgets Determining Timeframes Getting Buy-In / agreement.
Completing the process can take place in a matter of minutes or over the course of a year, depending on the nature of the issues at hand. Some conversations may involve only some of the steps and go no further. The steps apply to internal issues as well as external customer related issues. Each step in the process involves asking open questions and listening as a means of prompting others to paint their picture before offering your views.
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Incentives COMMUNICATION (continued)
Considering what we have learned about minimizing resistance by encouraging others to paint the picture regarding each step of the communication process, answer the following questions: When identifying issues, who should paint the picture? You ___
The Other Person ___
It doesn’t matter ___
Who should paint the picture of potential solutions? You ___
The Other Person ___
It doesn’t matter ___
Who should paint the picture of the monetary or other costs? You ___
The Other Person ___
It doesn’t matter ___
Who should paint the picture of when action should be taken? You ___
The Other Person ___
It doesn’t matter ___
Who should paint the picture of what the next action should be? You ___
The Other Person ___
It doesn’t matter ___
"Just because your voice reaches halfway around the world doesn't mean you are any wiser than when it reached to the end of the bar." —Edward R. Murrow— Journalist
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Incentives COMMUNICATION (continued)
In all of the above cases, the answer is the other person. Remember, the other person should be talking about 2/3 of the time, and you, only 1/3 of the time. If you do most of the talking, you restrict the other person’s ability to participate, which potentially creates resistance. And if that were to continue over a long period of time, one could be heading for that dreaded disorder…‖bad chemistry‖. So when resolving problems let others offer their views on every step along the way. When finished or after each step, you can always offer thoughts that provide more choices. When offering your views, offer them as information. Allow others to consider, accept or reject your thoiughts, and then continue from there. You will have a better chance of gaining respect, which can buy you everything. If this sounds like you are submitting to the other person’s points of view, nothing could be further from the truth. Always remember the adage, ―The best offense is a good defense‖. It applies to judo, chess, football, and a host of other sports. By knowing how to ask strategic open questions, you are able to learn things you may not know. In the end you gain more knowledge and if there is a need to offer a different point of view the choice is always yours. What most people don’t realize is that the most assertive, take charge people are those who know how to use questions and listening to their advantage. Just look at Sherlock Holmes, Agent 007, well trained FBI agents, lawyers, great leaders, and so on.
"Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen." -- Sir Winston Churchill --
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PLAYING THE GAME Here is a simple example of how prompting someone to paint, or using questions and listening becomes an assertive system of learning more and producing cooperation, incentive, and respect. The example will be exaggerated to demonstrate the point. S/he:
Hey I don‟t mean to interrupt but we need to talk.
You:
What‟s happening? (open question)
S/he:
We‟re unable to get the production we agreed to.
You:
Why‟s that? (open question)
S/he:
The equipment we‟re using is ancient and keeps breaking.
You:
What‟s it doing to us? (open question)
S/he:
Well, it slows down production dramatically.
You:
I see. So what does that mean? (open question)
S/he:
It means our cost of operations is increasing fast.
You:
Then what do you think is the right solution? (open question)
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PLAYING THE GAME (continued) S/he:
Let‟s check the feasibility of a new packaging system.
You:
I see. What will that give us? (open question)
S/he:
They are faster and have a variety of warning detectors when there are problems.
You:
How will that help? (open question)
S/he:
We get more production and the system keeps running and that means lower costs.
You:
Okay; how will our budget handle it? (open question)
S/he:
We need to budget about $1,000,000 and it will be spread over its life of ten years which amounts to $100,000 per year. How does that sound?
You:
Humm…seems reasonable. How long will it take to get it up and running? (open question)
S/he:
I think about 60 days.
You:
I see. So, what do you think we should do? (open question)
S/he:
I think we should move on it.
You:
Okay, then what‟s the next step? (open question)
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PLAYING THE GAME (continued) You can see that every remark by ―you‖ was in the form of an open question, which encourages the other person to talk at length. It was used to guide the other person through the problem solving steps. Secondly, the other person responded with answers to each of the five steps. The process can be applied to a one on one or group discussions. The rules of questioning: Open Question – It’s the type of question that a person cannot answer with a short response, such as a yes or no. It takes a number of words or more. Closed Question – It’s the type of question that gets a short response such as a yes or no. It should be used as little as possible because it does not cause the person to talk at length.
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PLAYING THE GAME 2 Respond to these statements: ―Wow I’ve got a great idea.‖ ―What we need to do is add a couple of new features.‖ ―I think that’s a bad way to go about improving our situation.‖ ―The cost is too high.‖ ―What time should we meet?‖ ―Look let’s talk about price.‖ ―I’m planning to increase our sales force, so let’s get started with the planning.‖ (You disagree) You’re leading a group discussion and someone offers a differing point of view. Describe how you would handle the situation.
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PLAYING THE GAME 2 (continued) SOME SUGGESTED RESPONSES ―Wow I’ve got a great idea.‖ “Oh, what is it?” ―What we need to do is add a couple of new features.‖ “What will that do for us?” ―I think that’s a bad way to go about improving our situation.‖ “Why‟s that?” and/or “What would make sense?” ―The cost is too high.‖ “How did you determine that?” and/or “What should it be?” ―What time should we meet?‖ “Offer your suggestion straight forward or ask, „When would you like to meet?” ―Look let’s talk about price.‖ “No question that price is important, but I think we still need to be clear about what we want to do in more detail before we can start estimating price.” ―I’m planning to increase our sales force, so let’s get started with the planning‖ (You disagree)…. “Why do you want to do that?” Then, after hearing a reason, consider something like, “I‟d like to offer an idea for considering an alternative strategy for your consideration.” You’re leading a group discussion and someone offers a differing point of view. Describe how you would handle the situation. “That‟s very interesting. Did you all hear his thoughts? Who can add to his thinking?”
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Incentives COMMUNICATION (continued)
Does the leader employ positive tactics in leading team? Does leader view workers positively, support them, listen and acknowledge their ideas? Among the most effective forms of motivating employees is listening to their concerns and acknowledge their ideas. It’s a way of helping them help themselves. Does leader give credit and commend people for achieving or exceeding their objectives? There is no better opportunity to motivate people than to congratulate them in a very big way when attaining their goals. When objectives are not attained does the leader encourage and help vs. criticize? In keeping with the principle of painting the picture, a good leader will use questions to prompt the individual to examine his/her own performance and think of ideas for improvement. When work rules are violated, are employees given the opportunity to describe the problem, match it to job description and offer a solution? In keeping with the principle of painting the picture, an effective leader will use questions and listening to prompt the individual to review and resolve the problem, if possible. When people leave an organization, does the leader make the parting a positive and productive event? An effective leader will encourage and help the individual attain his/her goal, which is a win for the organization and individual leaving because it opens an opportunity for another person. When someone is to be terminated, is it handled in an encouraging manner? When someone is being terminated, very frequently the termination is handled negatively for whatever reason. An organization has everything to gain and nothing to lose by handling the departure in an honest yet encouraging manner.
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COMMUNICATION (continued)
TEN COMMANDMENTS FOR EARNING RESPECT 1.
Ask and listen rather than tell.
2. Recognize that talking most of the time produces resistance and erodes respect and incentive. 3. Do not attempt to impress with words or bearing. 4. Invite criticism and free expression, producing participation. 5. View others as capable, and respect their views. 6. Communicate honestly with good or bad news. 7. Use ―we‖ when sharing information, ―you‖ when giving credit, and ―I‖ when accepting responsibility for errors in judgment. 8. Resolve issues following the principle, ―When things go wrong the fault generally lies in the system; not a person.‖ 9. Be genuine with superiors, subordinates, and/or peers. 10. Communicate warmth and understanding non-verbally.
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COMMUNICATION TO SUMMARIZE Developing good chemistry involves carrying on conversations with open questions that cause others to express themselves (paint the picture) so you can listen, learn, gain cooperation, and finally earn respect, which places you on the path to developing good chemistry. It’s worth repeating that the art of asking questions and listening is NOT an unassertive quality; rather, asking questions and listening is the key to being very much in charge and on the offensive. The skills apply to any conversation including resolving conflicts. “People quit people before they quit companies.” —Monday Morning Leadership—
NOTE: Because communications is very complex, this segment was extended a bit. Because of its importance, a second playbook, Connect, provides far more in-depth skills, knowledge and examples for handling all forms of interpersonal communications such as learning, listening, handling conflict and so on – and in all cases employing the principle of ―Painting the Picture‖.
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RECOGNITION & REWARDS
Is there a recognition/reward system matching the value of the performance delivered? Recognition is another positive element contributing to ensuring high performance. Workers need to be recognized when they meet or exceed the objectives. It may be a pat on the back, an award, a free trip, or any number of things that recognize a job well done. As expressed earlier, adults can be a lot like children – ―Recognize them and they perform, criticize or ignore them and they perform less.” The world has seen many pictures of Tiger Woods as a young boy getting a big hug from his father after hitting a ball, no matter how well or how bad he played. That‟s called unconditional love. It happens every day in good families, and with good coaches who know the value of giving players sincere, positive strokes - good feelings. It can be at least as important as money.
Progressive companies are always thinking about ways to create incentives to get the most out of their people. Sales organizations will reward sales people for exceeding their targets with trips to sales conferences held in high profile resorts. The same is true of other jobs, especially where the value is substantial. Other awards might range from plaques, commendations from CEO, award luncheons, dinner with the boss, prizes, etc. The selection of an incentive is based on the idea that the value of an incentive is directly related to value of the output.”
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RECOGNITION & REWARDS (continued) Here is a list of other incentives that contribute to keeping employees: Play days–people go to ball games or take part in other activities. Tuition reimbursement for furthering education. Pet Insurance – pet lovers cherish this kind of consideration. Services – on site women’s hairstyling salon and dry cleaner. Gym facilities for helping employees stay fit, reducing sick days. Extra vacation time after ten or ―x‖ years of service. Flexible work hours. These and other incentives are combined with bonuses as a total package.
The greater the loyalty of a group toward the group, the greater the incentive among the members to achieve the goals of the group, and the greater probability the group achieves its goals. Rensis Likert
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ATTAINABLE OBJECTIVES
Are the objectives reasonable and attainable? If an objective is unattainable, it will obviously be a de-incentive. After all, how can people be motivated when asked to do something that can’t be done? The expression, “The complex we can do; the impossible takes a little longer”, is a bit of a fantasy. It’s important to work hard at determining what is attainable and challenging. Poor decision-making in this realm can lead to eroding incentive. The best way to generate attainable objectives is to partner with team members in planning objectives that are reasonable yet challenging. If the objectives are found to be inadequate, the leader and team can reexamine them. If it still appears the objectives will not satisfy upper management, the leader may need to continue a dialogue between the team and higher management until a resolution is attained. It could be that it will require improved processes, greater resources, and/or other elements from the model that haven’t been discussed yet. When Tiger Woods was growing up he was coached by his father. If he was told he needed to get a hole in one every day to become great, chances are that kind of expectation would have caused Tiger to give up the game long ago. If a great soccer player was told in order to earn the salary agreed upon he would have to score more than one goal in every game, that expectation would produce little incentive to play as well.
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CONTROL OVER WORK
Are team members given adequate control over their work? Superior coaches generally have on-field leaders who aid in decisionmaking. There is open communications to get the best results. Everyone is part of the system of control. Golf teams work together to generate tactics from hole to hole. A good coach operates as a team member.
The worst way to maintain control is to expect people to do only what they are told. Making people into puppets takes away pride of accomplishment. If people are given power to plan and make decisions about their jobs, they will find ways to improve the processes. People want to do well. No one wants to fail. It’s the nature of man to improve and protect conditions they create. That is, if the environment is right. So make them stakeholders. If you are a leader, join them in making things better. The key to having control is in knowing how to give up control. Good communications and giving control, can gain more control because people like having the freedom to make things better. They will take ownership and work to succeed. The result: more mutual respect and incentive, translating into all the control and respect you could ever want.
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“The best executive is one with sense to pick good people, and the self-restraint to keep from meddling.” Teddy Roosevelt 26th U.S. President (1901-1909)
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PLAYING THE GAME Manager of a field office of a business equipment company was replaced because of poor performance. The office was located in one of America’s largest cities. The new manager started by reviewing sales and found performance varied a great deal. He met with each of the Representatives to learn how they viewed their jobs. He asked what needed to happen to improve performance. A repeated issue was in handling of major accounts which accounted for a sizable percentage of sales. In addition there were four product lines, each having a Rep. This meant four Reps called on each of the major accounts, causing confusion. When the meetings concluded the manager met with the 100 Reps. He reviewed the results of the meetings and shared everyone’s thoughts. A discussion ensued and as a result the branch was reorganized. Major accounts were assigned to individual Reps. If any of the four types of Reps wanted to visit an account the Major Account Rep coordinated the visit and strategy, eliminating confusion. The reorganization was based on giving people reasonable control over their work environment. As a result of the changes, the atmosphere improved dramatically and the office went from being an under achiever to number one. This was possible because the manager was willing to listen and become a follower as well as a leader.
Being a leader has little to do with having a title.
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Incentives
REVIEWING INCENTIVES 1.
The objective of incentives is to generate motivation.
2.
Recognition can take many forms.?
3.
If objectives are not challenging or on the other hand, unreasonable, it diminishes motivation.
4.
People by nature want to perform, and giving people adequate control over their work is a reliable motivator.
5.
To gain respect, learn to talk no more than 1/3 of the time, whether talking with a peer, subordinate or superior.
6.
Always imposing your point of view produces resistance.
7.
When holding a meeting with a group, encourage conversation within the group using open questions to continue the dialogue.
8.
If someone has a resistant attitude, you may be talking too much or imposing your point of view too often.
9.
Someone who is rather timid, be alert that resistance may be in the form of simply not offering much information.
10.
For your job or another, record needed INCENTIVES on the following SCRATCHPAD or one of your own making.
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Incentives
SCRATCHPAD (side 1)
PLAYER NAME: TEAM NAME: BARRIER
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SOLUTION
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COST TO FIX
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Incentives
SCRATCHPAD (Side 2)
BARRIER
SOLUTION
KEEPING SCORE ESTIMATED POTENTIAL GAIN
ESTIMATED NET POTENTIAL GAIN
ACTUAL NET GAIN
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COST TO FIX
Think
Incentives APPLYING INCENTIVES TO JOBS
APPLYING INCENTIVES TO ANY INDIVIDUAL WORKER Considering compensation, effective communications, rewards, attainable objectives, and control over work, is there one or more that would help me and others perform at the highest levels? APPLYING INCENTIVES TO ANY INDIVIDUAL MANAGER Considering compensation, effective communications, rewards, attainable objectives, and control over work, is there one or more that would help maximize motivation of my team members? APPLYING INCENTIVES TO A PRODUCTION DEPARTMENT Is the team provided bonuses based on team goals? Are they also rewarded in non-monetary ways? Do they have attainable production goals? Do they have adequate control over their jobs? APPLYING INCENTIVES TO A PROFESSIONAL FOOTBALL TEAM Considering compensation is more than adequate, are players praised frequently when executing tactics well, are they honored for excellence, and are they given bonuses based on attaining specific goals? APPLYING INCENTIVES TO A LOCAL SMALL GROCERY STORE Does the store use bonuses based on criteria, give encouragement when objectives are achieved, and rewarded for customer relations? APPLYING INCENTIVES TO AN OVERNIGHT DELIVERY TEAM Are team members rewarded based on team goals? Does the team have adequate control over their work? Are the goals reasonable? APPLYING INCENTIVES TO A LOCAL INSURANCE AGENCY Are the commissions reasonable? Are customer service people rewarded based on customer service criteria? APPLYING INCENTIVES TO A LEMONADE STAND VENDOR Has the vendor set up reasonable objectives? Does the vendor communicate well enough to attract customers? APPLYING INCENTIVES TO A HOSPITAL INTENSIVE CARE UNIT Are the nurses rewarded based on patient relations and quality care criteria? Are they given adequate control over their work?
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Incentives
THE SCOREBOARD Pre Game Game Plan Expectations Processes Resources Incentives Skills-Training Feedback Motivation Keeping Score The End Game
"Flatter me, and I may not believe you. Criticize me, and I may not like you. Ignore me, and I may not forgive you. Encourage me, and I may not forget you." --William Arthur--
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