Best Practices Are Stupid by Stephen M. Shapiro

Author:Stephen M. Shapiro
Language: eng
Format: mobi, epub
Publisher: Penguin Group USA, Inc.
Published: 2011-08-05T05:00:00+00:00

EXTRINSIC MOTIVATORS

Although cash bonuses for innovations have been around for ages, more sophisticated methods have gained popularity recently. One involves the use of a points system. When you contribute an idea or solution, comment, or vote, you get points—much like American Express Membership Rewards points or skeeball tickets—that can be used to buy a variety of items: company T-shirts, mugs, and other “exciting” items.

Some companies have taken the concept a bit further and allow people to accumulate points that can be used in auctions. Once a month the company holds an auction for a trip to, say, Tahiti. Anyone with points can join the bidding. This encourages people to earn and save as many points as possible so that they can have a chance at some really big prizes.

Another model that doesn’t necessarily need a points system involves “priceless” awards. Remember the MasterCard commercials? Dinner with the CEO, a prime parking space, or an extra week of vacation; these types of prizes are great motivators because no amount of money can buy them.

All of these models have an extrinsic form of motivation in common. They all offer a tangible prize. Chip Conley, author of Peak, would point out that these motivators relate to the lowest rungs on Abraham Maslow’s hierarchy of needs—five levels of human needs where higher-level needs are not felt until lower-level needs have been satisfied. The lowest two levels involve physiology (e.g., food and shelter) and safety/security. Extrinsic motivations, such as money, allow you to meet these basic human needs. (See graphic at the top of the next page.)

Yet there is an opportunity for other, potentially more effective forms of motivation for innovation.

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