Companies that previously threw cash at employees to motivate them are, for the most part not in a position to do that anymore. So what kinds of non-cash incentives are effective? A McKinsey survey suggests that praise and commendation from one’s immediate manager is the most effective.
This is interesting from two aspects. Firstly, it demonstrates how influential a manager or team leader is, something these people often forget. In my training facilitation work with middle managers and supervisors, they often bemoan their lack of influence and the feeling of being stuck in the middle, unpopular because of the sometimes hard messages they have to pass on from senior managers and taking flack from their reports for those messages. I think they underestimate their influence with their direct reports. The most ‘significant other’ for most people in the work place is their immediate boss. In a large company the CEO may be seen as the most important but for most workers this individual is little more than a speck on the horizon. The person they most want to please, the person who’ll be doing their performance reviews and the person whose behaviour they’re most likely to emulate is their direct manager.
Secondly, it shows us that it is really important to train managers and supervisors in how to give praise effectively. In a tough environment it can seem an easy win to go around lavishing praise on team members to make everyone feel better. But the reality is that non-specific praise heaped on people can be like a too rich chocolate cake, lovely for the first few bites but cloying and rather sickening if we have too much. The big danger is that people begin to believe that they’re fabulous just because they’ve turned up. The long term result of too much indiscriminate praise can actually be less effective performance.
So how can we as managers ensure this doesn’t happen? Ensure that we give praise for specific behaviours and the reason why those behaviours are important for the business and therefore praiseworthy. So for example imagine you’re a supervisor in a customer support call centre operation. You overhear one of the employees engaged in what is clearly a difficult and long call with an irate customer but she is keeping her cool and a friendly even tone of voice. After the call is finished you might say, “Mary, I really admire your patience. That sounded like a difficult call.” Sounds OK doesn’t it? Except what Mary might hear is ‘You’re really patient, even when the customer is a complete sod,” which over time might make Mary believe she’s patient even when she isn’t always.
Saying instead, “Mary, I really appreciate how you handled that call. When you treat customer complaints in that patient manner you really make a difference to how the customer feels about the company. That helps us keep customers which makes a big impact on our profitability.” The message is very different. Mary gets that it’s that particular call and that particular behaviour you are talking about but it’s also been linked to a bigger picture and a positive result for the company. She also feels good about being recognised. So the next time Mary has a complaint to deal with she’s far more likely to repeat the behaviour.
A wonderful associate of mine who helps new managers adjust to their roles and responsibilities advises those managers to keep tabs of exactly who in the team they have praised and for what behaviours. It sounds pedantic but she has used this in the past to improve performance and morale very successfully.
Cone in Boston is a leading agency in the area of cause branding and cause related marketing. I subscribe to their weekly e-mail newsletter to keep abreast of what is happening in this area and also to get good examples for use in my teaching work.
With so many companies now engaged in social impact projects it is becoming increasingly difficult to connect with consumers and stand out from the crowd. Here is some advice on demonstrating cause impact from the Cone blog:
1. Ongoing Tracking – Results are continuously updated in real time
Pro: Real-time reporting motivates consumers to get involved to help move the ticker
Con: Demonstrates collective impact, not necessarily impact of individual
Example: “GE Plant a Bulb” - every time someone views a video on its website, GE will donate a flower bulb. It keeps a running tally of bulbs planted on the campaign page.
2. Interactive Impact Calculator – Impact is shown through an interactive calculator
Pro: Invites consumers to crunch the numbers and instantly understand how their personal donation or action will impact the cause
Con: Does not necessarily capture the ongoing, collective progress of the campaign
Example: Starbucks “The Big Picture” - Starbucks shows its impact through a customized impact calculator where consumers can enter the number of cups they save per day by using a reusable mug to see how many trees they save over 50 years.
3. Storytelling – Impact is communicated by sharing personal stories of people who were affected by the issue and helped by the program
Pro: Makes the outcome real through human connections that satisfy consumers’ emotional needs
Con: Is abstract and lacks a quantitative component to demonstrate overall progress
Example: Downy “Touch of Comfort” – Downy demonstrates impact by providing follow-up stories of kids who spend their nights away from home and benefit from the gift of a quilt from Downy.
4. Customized Mapping – A customized map shows consumer impact – locally or globally
Pro: Makes the contribution tangible to each individual and is an excellent way to localize a national or global campaign
Con: Does not necessarily show the collective impact of the campaign
Example: Odwalla “Plant a Tree” – for every visit to related parks, Odwalla will pay for a tree to be planted. Consumers can choose a state and locate their tree online.
5. Mosaic – Consumer effort (making a donation, signing a pledge) helps complete a visual mosaic representing the campaign
Pro: Makes consumers’ contribution fun and essential to “complete” the whole picture
Con: Although they are a necessary part of the whole, consumers may feel lost in the large picture
Example: The Body Shop “Stop Sex Trafficking” – by signing the petition, consumers will help The Body Shop raise awareness about the terrible crime of sex trafficking. With the visual roster, consumers can see the names of those who have signed the petition.
6. Social Math – Potential consumer impact is demonstrated through a simple, clear (often one-to-one) equation
Pro: Makes overwhelming issues (e.g., preventable diseases) more approachable; showcases how consumer action has a true, measureable result
Con: Consumers still want to know the overall outcome which requires additional reporting (e.g., 1 pack = 1 vaccine, but ultimately how many lives are saved?)
Example: Pampers “1 Pack = 1 Vaccine” – for every product bought, Pampers will provide UNICEF with funding for a life-saving vaccine to protect a mother and baby against tetanus.
There has been a lot of commentary on the PWC e-mail scandal over the last few days. From people saying it’s only a bit of fun to (justifiable in my opinion) outrage about the publication in national newspapers of the photos of the young women who were the objects of the e-mail hot list. The really important thing for PWC to focus on now is what they do to reprimand the individuals who took part in this silly activity.
PWC Ireland’s code of conduct is available for all to see through their website. It’s a well constructed code in my view, focusing on things that are core to their business and providing sensible guidelines for people to follow. Since PWC advises clients on good governance and business practice I would be very surprised if they did not have a policy on e-mail and internet usage as well.
It is clear by looking at the code of conduct that the men at the centre of this story have transgressed several parts of the code:
Upholding the
PricewaterhouseCoopers name
We use all assets belonging to PwC and to our clients,
including tangible, intellectual and electronic assets, in
a manner both responsible and appropriate to the
business and only for legal and authorised purposes.
Respecting others
We treat our colleagues, clients and others with whom
we do business with respect, dignity, fairness and courtesy.
We take pride in the diversity of our workforce and view
it as a competitive advantage to be nurtured and expanded.
We are committed to maintaining a work environment that is
free from discrimination, harassment and retaliation.
The big test is what PWC management does next. They must be seen to punish the wrongdoers. Not to do so sends out the message that the code of conduct is not really to be taken seriously. So I’ll follow this story with interest not out of some prurient interest in the unfortunate women who got caught up in all this through no fault of their own, but to see what action PWC management takes.
Actually maybe a just punishment in the circumstances would be to publish photos of the men involved all over the front page of a daily newspaper!
Mark Fielding of The Irish Small and Medium Enterprises Association was on the news this week complaining about the length of time small firms are waiting for payment from government departments and larger companies. A survey of more than 500 businesses found that they were waiting an average of 73 days for payment.
As a small business owner it’s something that I feel strongly about (though I seem to be incredibly lucky with my clients it has to be said). But in a broader sense I see this as a core business responsibility issue. If someone supplies a product or service to the standard agreed they are entitled to be paid in a timely manner. Late payments put pressure on cash flow which is particularly damaging for a small business. Chasing payments also wastes valuable time and energy which the small business owner could more usefully put towards developing their business.
There’s another consequence which I believe late paying companies often ignore. It’s incredibly embarrassing to be the person being chased. If you make an order on behalf of your employer and you then have to field the phone calls from an increasingly irritated supplier due to some supposed policy of keeping suppliers waiting (and I’ve been that soldier in the past) it doesn’t make you feel too proud of the company you work for. So if you want to de-motivate employees and ensure they don’t feel good about where they work, that’s a great way to do it!
I wrote previously of my concern regarding Coca Cola’s purchase of 18 per cent of Innocent, the fruit smoothie company. An article in the Sunday Business Post indicates that I was wrong (and in situations like this I love being proved wrong). Coca Cola has now upped its stake by a further 40 per cent but the founders retain control – most unusual. I guess that Coke realise that they have made a good investment and also that the strength of the investment is in the vision and passion of the founders. If they mess with that, they mess with their investment. Which goes to prove that being true to your values makes good hard-nosed business sense.
