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By Andrea Kuszewski | August 24th 2009 04:08 PM | 25 comments | Print | E-mail | Track Comments
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About Andrea Kuszewski

Andrea is currently a Behavior Therapist and Consultant, treating children on the Autism Spectrum in Boston, MA, USA. She is also a researcher for METODO Transdisciplinary Research Group on Social... Full Bio

How can companies get the best possible performance out of their employees? Let them do whatever they want! And furthermore, don't offer incentives. Sound counter-intuitive? Not if you look at what research has shown regarding the economics of motivation.

According to Dan Pink (lawyer, speech writer, author, and career analyst), the way to get the best original ideas out of people is to cut back on restrictions and rules regarding output, and stop offering incentives for work produced. This may sound a little backwards, but science has shown that sometimes when we offer rewards for output or production, it effects the quality of the ideas or work as opposed to offering no incentive. In his TED Global 2009 talk last month, Pink says:

"There is a disconnect between what science knows and what business does."


He goes on to say,

"Traditional notions of management work great if you want compliance, but if you want engagement, self-direction works best."

So does this mean we should cut back on bonuses and perks for good performance? Well, maybe. In tasks that involve focused, clear objectives and goals, incentives do work. However, in tasks that involve creativity, innovation, and generating original ideas, offering incentives actually distracts from the mind's ability to freely think outside of the box and be open to creative insights.

In Duncker's famous "candle problem" illustrating Functional Fixedness (1945), subjects are asked to attach a candle to wall in a way to prevent wax from dripping on the table- given only a candle, a book of matches, and a box of tacks. Some subjects tried to tack the candle to the wall, others tried to melt the wax on the side of the candle to stick it to the wall. Neither of these worked. The solution is shown here.



The whole idea of this experiment was to show the importance of using creativity problem-solving to come up with functional solutions.

Sam Glucksberg, from Princeton University, decided to test if offering a financial reward helped people to perform better at this task. He found that when a financial incentive was offered for completing the task in a shorter amount of time, they actually, on average, took longer to solve the problem than the group that was offered no financial incentive. Why is this?

When we are offered a reward for a behavior, part of our brain is focused on that reward, which is how incentives work. However, if we are doing a task that requires creativity, narrow focus limits the range of necessary flexibility of thought that is essential to creative output. When we are given no incentive and thus free to completely devote our mental efforts to just solving the problem, our mind is able to generate these creative solutions faster.

Pink talks of companies such as Google and Atlassian who have pre-set "free work times"; during these times, employees have no restrictions on what they can work on, what time they have to be in the office, even whether or not they have be in the office at all to do their work. The only stipulation is that they have to get "something" done. It is these times, where they are basically free to work on whatever they want, that end up generating up to half of the total successful innovative developments for the company. Because the employees did not have to focus on anything like specs or any particular ideology, they were driven only by their own intrinsic motivation to work, thinking for the pure enjoyment of generating new ideas.

Autonomy, it seems, is the new form of management when it comes to creative output. In an age where computers are taking over computational tasks and more of the focused directional work, we rely heavily on the human capacity to be creative. Creativity has become vitally important for the advancement of society and the continuation of forward progress; development of new technologies, innovations, and even scientific theories are driven by creative ideation. If we want engineers, scientists, or any type of worker to be able to function at their absolute creative best, allowing them to freely explore their ideas without having to worry about restrictive subject matter, methods, or ideology is the best way to reach that goal.

Comments

i still get angry and upset when my father tells me how to do something that i know how to do already... I understand teaching one something but after i understand the methods Please just let my creative thinking flow and i will operate at my best...

Do you thnk this concept works the same with a group just as it does with individuals...???

jtwitten's picture
A TED talk worth listening, too!  Oh, wait, no.  This is the same Dan Pink that gave us A Whole New Mind, in which his idea of bringing science into business is to right about he antiquated and thoroughly debunked notion of stereotyped right and left brained people.  mrs. rugbyologist had to read it for work once.  Worthless.

I've yet to encounter a worthwhile TED talk, unless my only goal is to understand what his hip and trendy, and thus avoid it like the plague.

Hank's picture
Well, I don't know ... I mean, I know about your anti-trendiness, but I don't know that TED is fluffy.   What if being anti-TED becomes trendy?  What then?

SB scribe Jane Poynter gave a nice TED talk ... there may be other writers here who did well too, I am just too cool to look for them.





jtwitten's picture
I'll give you Jane's talk a as a refutation my general statement, but here is a quick (not nearly exhaustive) list of the dubious that they have also invited (they invite so many people that  won't be going through the whole list anytime soon:
Dan Pink (buys left brain/right brain myth)
Elaine Morgan (of the aquatic ape "theory")
Charlie Moore (of the Pacific Trash Gyre)
Freeman Dyson
JJ Abrams (of the Star Trek plot hole reboot)

And there is just the loads of trendy tech demonstrations that rarely amount to anything.  The underlying concept was good, but these talks are becoming like the much ridiculed motivational posters: a tool for managers to "inspire" their employees.  Even the good talks are generally only of a length to act as a promo, not convey solid information.

I would partially agree with the incentive argument. This argument assumes that there WILL be a bonus. What we’ve decided to do is have a $1k, $3k, $5k and $10k check in our safe. When a STELLAR idea is presented to management, we immediately sign the check over to the employee. The idea doesn’t have to be one we present to the client. It just needs to be brilliantly transformational. This is to make sure the employees are working for us (read: amazing innovation ideas) vs the client (who sometimes ask for things they don’t need). For us it has worked incredibly well. We have only given out 3 checks (we’re 1 year old – 30 people) and are still waiting to give out the $5k and $10k check. Therefor, the X factor is the understanding of random rewards. Not expected rewards.

Andrea Kuszewski's picture
I am not getting email notifications of these comments... hmmm.

I am far too busy to address all of the points right now (I am leaving town in 2 days and am not finished packing yet). However, I will have nothing to do but write this weekend while I sit in my new apartment with only my dogs, my computer, and a few boxes of research I am working on, as I await the arrival of the rest of my belongings sometime in September.

I'll answer to some of these claims and criticisms on Friday night.

Josh: do you just hate psychologists, or is this a widespread disrespect of any other scientist who doesn't happen to practice in your specific domain?

Hank's picture
There are 3 levels of notification; in your dashboard, you can set to receive email notifications for all articles.  On articles you can set email comment notification for that article (or shut off all comments if things are out of control) or if you just want replies to a specific comment you can set that in the comment.

Josh hates everything but he's quite egalitarian about it, so it has a certain charm.   He's also a rugby player so it is practical.


Andrea Kuszewski's picture
Ok... I had the comments options set before, but I never got any for this article. But then my identity switched twice in the last 10 minutes for some unknown reason. There must be some glitch going on.

I used to live with a rugby player at SIU, so I know the type. Actually, I lived with a rugby player and five other people; I never dated him.

Jeff Sherry's picture
I had something similar occurr. My post showed up as Eduardo with his picture.

Hank's picture
There must be some glitch going on.

Remember that article you wrote about how great things happen if people are autonomous?  (oh wait, this is that article)   Well, my elegantly designed code can also turn into a weirdly disfunctional pile if a developer makes changes on the production server rather than our test site.

So I am going to supervise and micromanage for a bit.

Andrea Kuszewski's picture
And as you should.... in this case, directional focused attention is needed. No one really wants a creatively random web identity. At least I don't.

kerrjac's picture
In tasks that involve focused, clear objectives and goals, incentives do
work. However, in tasks that involve creativity, innovation, and
generating original ideas, offering incentives actually distracts from
the mind's ability to freely think outside of the box and be open to
creative insights.

A strong undercurrent of the recession is the move from a manufacturing-based economy to a service-based one (I had a little post about it here http://cntrly.blogspot.com/2009/07/future-of-economy.html). A few interesting corollaries include that large amounts of capital may be becoming less important for start-ups, while ideas become more important - I'm curious as to whether this might eat away at the import of banks&large financial institutions, where part of the model has been to throw large amounts of cash at seemingly unrisky endeavors low-return endeavors, a strategy now more suited for emerging manufacture-based economies. These changes will likely vary a lot by industry, but either way they will likely spark new managing techniques in the US.

Hank's picture
A strong undercurrent of the recession is the move from a manufacturing-based economy to a service-based one

Driving manufacturing out of the US has been a huge component of the recession.    The notion that something will always take its place is a tenet of liberalism but hasn't worked well, outside spin, yet we keep being told how great it will eventually be.   In California, for example, they trumpet the lower per capita energy usage today compared to the rest of the country (as evidence that a low energy economy will somehow work) while ignoring the fact that the anti-business climate has driven out industry, leading to reduced energy usage but also rampant unemployment and huge annual debt.

Andrea Kuszewski's picture
Hank, I agree 100% with you. I saw some of this coming years ago.

I used to tell people who "poo-pooed" the necessity of developing and nurturing creative and specialized skills, that soon there will not be enough manufacturing jobs and automative-type jobs left here to sustain an economy, so we are going to need to find a way to make innovation a priority. Meaning, recognize the importance of it and find ways to profit from it. Instead of going on strike and demanding pensions, get out there an further your education...  learn new skills, discover a talent that maybe you didn't realize you had because you were stuck in a rigid mind-set regarding what a career or a job should look like.

In a blog post I wrote back in February, (I had brought up possible explanations for the greater incidence of "disorders" such as Autism or ADD/ADHD) I said,

"Well, at least there are all kinds of job opportunities for those kids with Asperger's Syndrome. I said this last year, and I'll say it again.... the necessity of technology advancement and creative jobs that involve thinking out of the box and operating on a slightly different "thought plane" is creating all kinds of opportunities for those people with ADHD, ADD, Asperger's Syndrome.... people who can't sit still in a cubicle, but thrive in innovative and creative jobs."

This was in a discussion talking about evolutionary psychology and the transition of "disordered traits" to "specialized but functional traits". I went on to say,

"...there seems to be a higher need for "specialization" within fields... that is, someone who is an expert on a nitche field, something that not everyone can do. When it comes to innovation and creative fields like research, engineering, marketing, etc... the best success comes when you have a bunch of "mini" experts who are still skilled in a broader area) who collaborate to get the bigger ideas.... that is where true discovery stems from. The thing is, it is now more advantageous to have these "specialized skills" or special interests.... for example the child with Aspergers who can write code for the iPhone, and those children are encouraged and their skills are cultivated as they develop.

Children with unconventional, unique skills or maybe ones with an attentional disorder who decades ago would have been labeled as "mentally retarded" or just "weird" and failed in school are now recognized for having a unique learning style, and they are able to
succeed despite their differences.

I guess in the much bigger picture of my "perfect societal dream world", we are going to have to eventually get away from this "one size fits all" attitude of an educational system. The top of the bell curve is where we get our standards in education, but in the tail of the bell curve [as far as normative traits, not intelligence, per se], in the top 5-10% is where the real creative innovators are, yet those are often the ones who are lost in education because it is assumed that they will "be ok because they are smart or talented". In reality, only those who also have a very high motivation end up succeeding despite the lack of support.

Now, maybe I am opening up a whole other can of worms, but I feel that we are at a pinnacle right now in our education system... the failure of public schools, the wider recognition of differences in learning style, the broader understanding of intelligence, the neuroscientific exploration of creativity, the higher demand for a society that innovates instead of just produces (computers and cheap overseas labor is taking over that)... all of these things point towards an change in how we view education, disorder, advantageous traits versus debilitating traits....."

I could go on. The bottom line is, we have placed all of this energy and all of our resources into an old model of business, but the business needs have changed, yet we are still operating in the same model.

There is not much we can do now about losing jobs oversees and the shifting of industry, but the fact is, it is here. Some (actually a lot) of forward-thinkers predicted this type of thing and advocated for a better way to build a functional business model centered around innovation, yet the government is always the last to get on board with new ideas.

However, I hope that now as we face this recession and are feeling the sting of financial hardship throughout America, we will finally take the necessary steps to find a way to tap into the valuable resources that the human mind has to offer, instead of stifling it at every opportunity.

Gerhard Adam's picture
As a practical matter we simply have too many people that need jobs to focus solely on the few instances of "innovation" as a solution.

More to the point, where is the expertise going to come from if we don't have a training ground for people?  If basic skills are being shipped overseas, we will not have the environment in which people can learn skills, gain experience, and become innovators. 

Somehow the fantasy seems to be that while the rest of the world is working to actually produce things, they're going to pay truckloads of money to a few people in the states to simply dream up ideas.  ...not going to happen.

kerrjac's picture
Agree with lots of your comments. Particularly regarding the educational system, the unique aspect of the 90's was the frankly weird (but non-coincidental) correspondences of unprecedented economic growth, increased job/career turnover, and constantly low unemployment.
The bottom line is, we have placed all of this energy and all of our
resources into an old model of business, but the business needs have
changed, yet we are still operating in the same model.

At the same time, I would caution throwing too much criticism at the "older" conventions/systems of education and the economy. For instance, GM has received criticism for its bulky disconnected brand-heavy structure, but for decades it worked.

We can certainly see such large-scale transitions unfolding, but it's impossible to comment on how much we "should" embrace this change or that change. Yes, broader education seems to be getting more valuable, but to what degree? Likewise with economic shifts.

If there's any trends to be pointed out from the past, it's that our attempts to respond to at least certain such trends through gov't action are ineffective. Private service jobs have been around for decades. A smart farmer in the middle ages might've pointed this out based on the observation that agriculture makes man less dependent on the whims of nature. But I'm not sure he should've started preparing for a less heavy labor-based economy.

The point being -&in a sense I think this gets back to the question of managerial style - it's not only a question of shifts towards categorically different goals, but also of the speed & degree to which those shifts occur. The weaknesses of such older conventions are of course obvious retrospect. But at the same time, it's important to point out that the essence of what makes them weak today is the exact same as that which made them strong yesterday. No doubt they'll go out of style given enough time. Exactly when that will occur, and what value they still have today, is unclear. Tearing down too much of today's infrastructure could hurt us tomorrow. That's why in some matters it's best to let the market - or the innovative employee - to himself.

logicman's picture
"We perform best when no one tells us what to do."


The truth of that statement may be seen stamped bold in any history book.  If the converse were true, we would long since have been living under a global feudal dictatorship.  Fortunately there is never a shortage of heroes willing to sell their lives dearly so that the world may continue to know freedom.

Unfortunately, many managerial types don't read history and so don't understand the concept of personal freedom.  You can tell the type easily: they are the overpaid managers of non-innovative businesses which have a very rapid turnover of underpaid staff.

Thank you for sending me this. As a highly creative thinker, I can remember too many times when worrying about money has held up formulating solutions.

Thanks Andrea -- good stuff. It made me think of the book Sway by the Brafman brothers, which illustrates the negative impact monetary incentives can have. I reference this post and explain the Sway connection at http://www.ericmatas.com/

I agree wholeheartedly with this principle for my self and many others I have had the pleasure to work with.

Food for thought when it comes to permitting all this freedom of thought, or am I thinking that the damage may have already been done to those viewed as 'not to be trusted'

I also run with the posting which suggests the idea of still getting angry when your father tells you what to do and how to do it. My father has passed away now but when he was alive I used to get so frustrated (especially with my free spirit) hearing him say eg: 'there is only one way to do this'. Not constructive or empowering, with an increased anxiety at the times when I had volunteered on occasions to run his business. Not surprising really, that I never took over his successful enterprise. .

This particular method of leading when it comes to production of ideas should not only be applied in businesses but, above all, in schools! How can kids develop a pleasure for learning and understanding if they are continually told what to learn and understand...?
There are some few schools and teaching methods that have understood this and been applying it for a while now. But the vast majority of them keep using the same methods of teaching. If we want things to be different and better in a near future, teachers should be taught how to teach. After all, we all learn, grow and work with and for, the next generations...

Andrea Kuszewski's picture
Schools are one of the most important "businesses" that should take this data into account. Some schools can literally crush the creativity right out of you, and punish severely when it appears ever so briefly. There is actually ANOTHER good TED talk that speaks of this as it relates to schools:

http://www.ted.com/talks/ken_robinson_says_schools_kill_creativity.html

I have learned this personally the hard way, unfortunately.

I'd seen that ted talk... It's hilarious!

Hey, publish it on twitter, facebook, everywhere you can! And this article also! Everybody should be aware of these things... and if everybody knows, eventually something will have to change...

Thanks, and thanks in advance =)

Andrea Kuszewski's picture
Thanks, Franz!

Indeed, it has (and still is) made its way through the social circuit... Twitter, Facebook, etc. I have received lots of great feedback as a result, which tells me I am not alone in how I feel about this subject.

And yes, I do believe things are in the process of changing, but we really won't see the full impact of this attitude change for a while. These kinds of shifts in global mind-sets and priorities are much slower moving than small, specific changes. However, the ultimate reward is far greater and worth the long struggle. Hang in there!!!

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