Responding to the Assault on Incentives

As we move more decidedly away the “industrial” economy where value and worth was determined by the statistics from the factory floor into the “knowledge” or “creative” economy where true value is added by people and their unique abilities to solve problems, tackle opportunities and create new markets; understanding why people behave and leveraging that knowledge to guide their efforts, has never been more important.  

The success of books such as “Drive” and “Predictably Irrational” are evidence that today’s business leaders are looking for better ways to engage and drive behavior within the organization.  The idea of “ordering” people to do something is no longer de rigueur and executives are beginning to understand that internally and externally there are better ways to influence behavior.

For the past 80 years or so, the two main tools used to focus and drive employee, channel and consumer behavior were incentives/rewards and fear.  Fear has always been the last resort and incentives – from cash bonuses, stock options, travel awards and merchandise awards the more “enlightened” approach.  

The technology for guiding behavior has pretty much stayed the same for 8 decades.

Time to Adapt

Any long-time reader of this blog will know, we look at a variety of ways to influence behavior.  We believe that humans – our units of production at most companies – are the most complex machinery in the world.  The maintenance and service requirements for these machines are huge.  No two machines are the same and their service and maintenance needs can change daily.  One day they may need validation – the next, new software (training.)  

In other words, getting the most value out of our human resources is not as easy as tuning up an engine or tightening a belt.  

We need to learn how to best engage with our employees, channel partners and consumers so that THEIR needs are met – as well as our organizations’ needs.

Old Tools Still Matter

While the new information we’re seeing is important and valuable for determining the best way to influence behavior there is a knee-jerk reaction going on that eschews all previous tools and techniques in favor of the “bright, shiny, object.”  We don’t agree.  We believe that there is a combination of new and old that is optimal for guiding the behaviors you want – and satisfying the needs of the individual.  

And we want to tell you about it.

Motivation Show – Oct 13, 2010

On October 13, 2010 at the Motivation Show in Chicago, I2I will be presenting and leading a session called:  Responding to the Assault on Incentives.  Our goal in this session is to bring a balanced discussion to the floor.  We’ll talk about the various ways to influence behavior – both old and new – and solicit what we hope is a lively discussion on combing the “new” and the “old” to bring about engaged audiences.  

Mark your calendars and please, join us for our session on October 13, 2010 at the Motivation Show in Chicago.  From some of the folks I've talked to this session will fill up fast - so sign up soon.  

Oh... and check out our teaser video - email subscribers may have to click through here to see video.... (btw - the new time is 3:30pm - 4:45 pm - the slides in the video are wrong...sorry)

Comments

[Ivan Bial]

The Assault on Incentives?

Wake up! There is no assault on incentives. Incentives have just evolved.

Incentives have been around for a thousand years. The new kid (Incentive) on the block are “Gift Cards” and they are King.

Instead of bemoaning the loss of business as an Assault, get creative.

Incentives become successful because they fit the market. Gift cards fit the requirements of the giving companies.

Companies must ask themselves; as an incentive what would my team want? A gift I select? Or one that cost me the same and the selection is almost limitless?

The market has changed in gift giving. Why give a gift from Macy’s, which gets returned for the gift the recipient wants when you can give a Macy’s gift card in the first place.

Incentives are still alive. However when you select a product based incentive it better knock their sox’s off. High-end electronics, travel and jewelry are holding there own and in some cases growing. Products with company logo are not so good.

Face facts, award me a flat screed HD TV or a cruise and I will tell everyone I meet. Award me a silver tray with a logo or a jacket, I may not tell me mother.

One of the victims of the shift in Incentives is “The Chicago Travel and Motivational Show”. This is the first time in over 15 years I can’t justify attending. I will miss seeing many business friends..But most aren’t attending either.

Give my regards to “McCormick Place”.

I can’t help but wonder how the show would do if it was held at the Las Vegas Convention Center or any of the cities convention centers.

Have a great show, I’ll be thinking of you.

[Paul Hebert]

Normally I'd knock this comment out since it's from a Gmail account and obviously the person didn't read the post or listen to video I referenced. But I thought it would serve as a good example of the world I fight against daily.

If he had watched the video or spent anytime poking around here - he'd know that I'm referring to the attack on ALL incentives - not just merchandise incentives. But - because he has little no marketing skill his best bet is to find a blog about incentives and post a rant about how his product - gift cards (I'm guessing since he didn't say but the tirade informs me) - is better. You go Ivan.

For you folks reading this post and comment - here's an example of why we exist and why we continue to have great client conversations. As long as folks like this are in the market - there will always be a need for me to talk sense and provide the appropriate balance in the discussion.

Rant on Ivan - if that is your real name.

[Scott Crandall]

Paul --- I'm not going to mention Ivan's post other than to say: good response.

You said something that intrigued me: if people are the new "machines", how many managers who wouldn't think about passing their key machine first thing in the AM without making sure it's running right (looking at dials/gauges, perhaps checking out a diagnostic, reviewing production numbers from the last shift, etc), don't even acknowledge, let alone talk to their people to find out how they're doing? Amazing isn't it? The machine is an asset that requires attention, maintenance and fine tuning; what are the people?

PS. Please forgive my gmail account . . .

[Paul Hebert]

The gmail account is only one clue I look for - intelligence is the next and you have that in spades.

I am in total agreement with your comment. Managers need to look at people as the most important ASSET and I use that word on purpose. Assets are maintained, upgraded, invested in and paid attention to. Just like you said - check in on the machine that drives your business every day. The best part - that "check up" is like adding high octane fuel to an engine driving even greater performance with no cost.

Thanks again for stopping by!