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Rotten to the Core: The Story of How the Best and Brightest can be Ruined
The objective of an incentive is to incite action within an organization using a device or mechanism that that allows the rewarding or recognition of behaviors. This can be accomplished by offering preferential treatment, money, privileges, promotions, verbal praise, or complements. With that states, I suggest the answers to the questions above are: ~ YES ~ I admit this topic is not the norm when it comes to the subject of employee moral. Usually this type of discussion involves companies that are not in tune with the pulse of their workforce and have severe performance issues that could be further aggravated by either non-existent or poorly functioning incentive programs. The one thing you will not walk away from at the conclusion is that somehow recognition is wrong, or that employees should not be motivated, and that incentives are no longer a viable factor in performance related issues. However, sometimes while trying to do the right thing excessively well can actually produce the wrong results, for the right reasons. I believe that the greatest management principle explains that what gets rewarded gets done. If you are not getting the desired result within your organization, ask yourself what behaviors are being rewarded. It's a very simple, but very powerful question. I've practiced it, trained others on it, and believe it should represent the cornerstone in any improvement initiative. Over past 8 years, I've created countless bonus structures, incentive plans, and contests designed to drive sales performance, attendance improvement, attrition reduction, and quality initiatives for entry-level employees all the way up to senior managers. When I say, "I believe in recognition, and incentive programs", I mean it and have the experience to back it up. I like to think of incentives and recognition as wonderful little gifts that are awarded to the best and brightest for going above and beyond or for one's voluntary willingness to perform a potentially undesirable function in attempts to assist the organization. Employees work for their agreed pay rate, and these gifts are sprinkled around to promote an environment of appreciation and good will for a job that is both appreciated and well done. With all this good will in the air, what seems to be the problem? What happens in the midst of the chaotic business environment is the context of the incentive can become confused. Without context, the meaning and objective is no longer anchored and becomes subject to interpretation. These suggestive interpretations can originate from poor communication, lack of specificity, or failure to maintain the differentiation between job expectations and an incentive or reward. In a worse case environment, context and interpretation loss can create an informal employee contract where performance is no longer contingent on their agreed to wage, but rather on the existence and significance of an incentive. To help your visualization I've included both obvious and subtle situations that can result from interpretation - context loss. Attendance Trap? To discourage absenteeism an incentive bonus is put in place, as a result employees come to work and have great attendance. Supervisors support this policy by encouraging workers to come to work so they do not miss out on the bonus. The employees continually receive this incentive, but then attendance improves for the organization, and the bonus is dissolved. ? What is the context in which this employee will view this situation? ? How will they view the value of attendance without the incentive? Sales Slip? An incentive program is put in place to boost poor sales performance. If an employee meets their sales goal, they can receive an incentive of several hundred dollars. Supervisors encourage their reps to do well so that they can be "in the money". This continues for several months. Employees are now expecting this as part of their income, but due to financial problems with the company, the incentive is discontinued. ? What is the context in which this employee will view this situation? ? How will they view achievement of their sales goals? Supervisor Motivation? As a super seller, an employee's consistent performance ensures her team is ranked among the best within the company. The employee has an attendance issue, but is solid player when present. The supervisor is lenient on the attendance policy, and chooses not to hold the employee accountable for fear the employee might come to work even less or eventually have her employment terminated due to poor attendance. Instead the supervisor discusses the value of being at work and says that the policy needs to be followed, but in conclusion congratulates her on her success with sales. ? What is the context in which this employee will view this situation? ? How will the supervisor be viewed? Team Quality? In this situation the associate comes across a rough and abrasive to customers, but his aggressive approach produces high sales numbers. The other team members are aware that his quality is below standard. The supervisor in an attempt to recognize his top-seller presents him with a certificate and $5 gift card in front of the team and shakes his hand for a job well done. ? What is the context in which this employee will view this situation? ? What is the context in which the employee and his team will view quality? Lack of facts? ? What is the context this employee will view this situation? A manager's error? ? How will this supervisor view her manager situation? ? How will this supervisor view this situation? Additional tips and areas of caution for the above situations: ? Use specific recognition, as opposed to blanket praise. ? Keep employees grounded by reinforcing the fact that they are paid to do a job, and anything extra is not permanent, and represents a gift from the company. ? Bending the rules or rewarding top employees with un-balanced performance can effectively disgruntle and suppresses your entire middle population. ? Using an incentive in place of a performance management process builds a culture that only performs when rewarded. ? Unrealistic standards only create a higher level for employees to fall from. As you consider the above scenarios and examine similar situations in your own work setting, dwell on the importance of context, and how it applies. Focus on perception and understand that it is reality. Remember, while trying to do the right thing, you can get the wrong results. Above all, remember to use the greatest management principle as your guide: What gets rewarded gets done. If you are not getting the result you are looking for, ask yourself, what's being rewarded? http://www.righttolead.com - Have you earned the Right To Lead? Aubie Pouncey is a contributing writer and member of this new website. If you are interested in his ideas or are looking for effective ways to manage then you will be interested in this: http://motivators.righttolead.com
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Careers and Employment The Effective Executive What does it mean to be an "effective executive"? Well very simply it means achieving the goals you set out to achieve in an efficient, creative and effortless manner. Some of the benefits that ensue from this self efficacy are: feelings of self confidence, self esteem, self worth, a sense of personal empowerment, feeling invigorated and passionate about everything you choose to do, a sense of resilience, more energy, personal emotional and physical health and for some a great sense of purpose. Transforming Your Sales Force by Creating Specific Expectations I just finished a phone call with a potential client who had called to discuss a problem. His 18 person sales force was paid on straight commission. All had been with the company for 8 - 15 years and were earning healthy incomes. His problem was that he could not get them to do what he wanted them to do. Here's the example he shared. Increasing Business Through Distributors You're a small company with a good product. You are confident that the product can sell, but you don't have the financial resources to hire a team of fifty salespeople to market and sell the product for you. You also don't have the staff resources to support those that purchase the product. How do you make your good idea and good product create success for you? Back-to-School List - 10 Tips for Trade Shows There's a new year beginning now - the school year. Whether you have children attending for the first time or finishing university, it's always hectic to get into the back-to-school routine. And, if you don't have school in your family, there might be your own remembrance of the excitement of starting afresh and learning something new. It's Time For A Sales Management Revolution Are you dog tired because of the way you manage your sales team? Many managers tell me that they cannot see a way out of traditional sales management methods that keep them working like dogs, including focusing strictly on revenue goals, staying late, traveling up to three weeks a month, tightly controlling teams, and constantly reacting to emergencies. There has to be a better way. Outsourcing the Sales Function Small to medium companies that want to increase sales or profits and find it is possible to outsource sales should - do it! At this point most business owners and executives either become overwhelmed with doubt or fear. 8 Line Items of a Trade Show Budget Budget Guidelines for Trade Show Marketing Moving a Business Relationship from Free to Fee: Turning Strangers to Friends with Power of Freebies In the last issue I shared with you a technique for getting permission to follow up with people who have seen you speak on stage. This was just one example of a tactic for filling your pipeline. The Spirit Of Change A Highly Conscious Approach To Business Management. For more on this topic please link to Innerwealth Web Site The Achilles Heel of Management Coaching While heading home at day's end, you begin reflecting on a coaching meeting you had earlier that day with an employee, Chris. You hope that, this time, you finally succeeded in getting her to understand the importance of spending less time in disruptive socializing in the office and more time elevating her performance. If not, you feel that your only remaining alternatives are to give her a poor performance evaluation or demotion or may even fire her. You're reluctant to do either of the first two things because you know these would disrupt the positive work relationship you've had with Chris. And you don't really want to fire her. On the other hand, you are running out of patience; this is the fourth time you've said something to Chris about the situation. Admittedly, the first few times, your comments may have missed the mark because you gave her only some casual feedback. But about a month ago, you held a formal coaching meeting with Chris, in which you discussed the situation in depth and came away thinking that she understood the need to change her behavior. In fact, she did change. But after a week or so, she was back to her old behavior. Snuff Out the Competition Without Leaving a Mark! Does the competition drive you crazy? Are they relentless about taking your clients away? Are customer loyalties becoming a thing of the past? Drop Discounts and Earn Top Dollar Every dollar you discount is a dollar of pure profit you are giving away. Therefore, your efforts to remove discounts will be richly rewarded. Set Yourself up for Trade Show Success Of the many mistakes small business owners make, a big one is participating in trade shows and business expos without a strategy for turning those marketing opportunities into sales. Here are five tips to get you started. Commodity Sales Prospecting - How to Stand Out From Your Competitors I have received a number of requests for advice from salespeople and sales managers that sell "commodity" products and services. When I refer to commodities, I don't just mean pork bellies or frozen concentrated orange juice. A commodity is any product or service where the target prospect is likely to be thinking: 3 Steps To Getting A Sales Meeting The best way to get a new customer is to clearly identify who you want to do business with and then get in front of them. They can then see what you look like, possibly see what your product looks like and also examine any data or statistics you might have. It gives you the ideal opportunity to start building a positive working relationship with your potential customer. Sales Forecasting For New Businesses Sales forecasting is the process of organizing and analysing information in a way that makes it possible to estimate what your sales will be. This Micro Module outlines some simple methods of forecasting sales using easy to find data. Books containing simple and sophisticated techniques of forecasting sales can be found in libraries and business oriented book stores. When Its DUH? Time at Trade Show - 3 Little Words Save the Day TIME, MONEY, HASSLE - You can make a sale on one of the Three Little Words, but when you sell on two of the three, you'll have a very loyal client. Sales Marketing: 12 Sneaky Tricks To Help You Outsell Your Competition Business can be like war sometimes. The Art of Sales (And Tips On How To Manage Your Sales Team) Selling. Cold calls, introductions, interviews, appointments, proposals, referrals, call cycles, building rapport, listening, asking for the order, overcoming objections, closing the sale, and rejection. There's a lot to know about the business of selling. No wonder many people are a bit overwhelmed when they are asked to do it. The Hardest Job Of A Trade Show You've heard this before: There were four people named Everybody, Somebody, Anybody and Nobody.
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