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People Power:

Effective Motivation

Incentive Motivation

Understanding the Power of an Incentive Program and Learning How To Organize and Promote It

by Vadim Kotelnikov, Founder, 1000ventures.com

"The worst mistake a boss can make is not to say 'well done'."  - John Ashcroft

 

Two Kinds of Motivation

  • Attitude Motivation - addressing people's thinking and feelings

  • Incentive Motivation - providing a reward to a person or a team for their activities or results

Both types are at their most effective when both are at work.

Five Golden Rules for Successful Incentive Contests1

  1. Everyone must have a chance to win

  2. Time the incentive system carefully

  3. Decide exactly what the scheme should achieve

  4. Give tangible prizes

  5. Ensure the scheme is fully understood

Recognizing a Well-Done Job: Forms of Renforcement2

  • Create a greater autonomy: this communicates trust and conveys a sense of additional responsibility

  • Increase visibility within the organization: recognize publicly the good work of someone

  • Showcase success: give special recognition - in could be an award, or you can let the employees themselves showcase their hard work and special accomplishments by asking them to present a special case study at a prestigious management conference or leadership meeting

Be Creative With Incentives2

  • Be flexible with employees - flexibility is the most requested perk on the job

  • Motivate without money: post a thank-you note on an employee's office door, hold morale-building meetings to celebrate success, assign a parking spot for an entire month,...

  • Walk the talk: be the role model for what you expect in others, convey your enthusiasm and remind others that problems can be overcome, express your optimism and faith in the team, concentrate on small, but significant wins, not just the big success, make work fun and celebrate a lot!

Related Chapters of the Business e-Coach:

Reward System

Attitude Motivation

Successful Incentive Program

A successful incentive program will not only increase profits but can also raise morale and inspire staff loyalty. Your program should include all the three greatest incentives:

  1. Empowering people to do the thing you enjoy doing

  2. Recognition - in all its various forms

  3. Money

Recognition - the Most Powerful Incentive for Motivation

"There are two things people want more than sex and money... recognition and praise." - Mary Kay Ash, Founder, Mary Kay Cosmetics

"People want to feel what they do makes a difference." - Frances Hesselbein, President, The Drucker Foundation

Using Innovation Metrics to Define Right Incentives

Modern innovation metrics, such as Return on Innovation Investment (R2I), aid in evaluating and rewarding new product teams and establishing a credible link between new product performance and corporate incentives...More

Case in Point: Dell Computer Corporation

"To motivate an employee to think like an owner, you have to give her metric she can embrace," says Michael Dell, CEO of Dell Computer Corporation. "At Dell, every employee's incentives and compensation are tied to the health of the business. We explained specifically how everyone could contribute: by reducing cycle times, eliminating scrap and waste, selling more, forecasting accurately, scaling operating expenses, increasing inventory turns, collecting accounts receivables efficiently, and doing things right the first time. And we make it the core of our incentive program for all employees."3

Other Cases in Point:

Goldman Sachs: When employees work late into the night, the firm sends them home in a limo at no cost.

Dell Computers: Everyone gets a week of at Christmas and 10 paid days a year for a personal use.

WRQ, Inc.: Offers employees a nap room with futons.

 

 

Bibliography:

  1. "Motivate to Win", Richard Denny, 2002

  2. "How To Motivate Every Employee" Anne Bruce, 2003

  3. "Direct from Dell", Michael Dell with Catherine Fredman, 1999

Founder - Vadim Kotelnikov. © Copyright by Ten3 East-West.  | Copyright | Glossary | Links | Site Map |

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