Tag: 4 Drives (Page 1 of 2)

How We Are Developing a Reward and Recognition System using the 4-Drive Model

I’m consulting with a 12 Billion dollar sales division of a Fortune 500 company regarding the future of their reward and recognition system.  Without going into much detail, they are trying to take a strategic approach to how they can improve the effectiveness of their reward programs.  As part of this process, we are using the 4-Drive Theory as a model to help guide how we build this system.

As one can imagine, the organization’s current reward and recognition programs rely heavily on the Drive to Acquire & Achieve.  By far, this was the predominant focus for over 90% of the components.  Additionally, our research showed that the current system has a number of legacy programs and other recognition items that are no longer strategically aligned with the organizational mission.

There are a number of ways that a reward system can be developed.  We aligned on developing a system that would tap into all four of the drives and focus on motivating actions on three specific sales behaviors.  With this in mind, we wanted to create a framework that would leverage various reward and recognition components.  That framework is shown below:

Reward and Recognition components

Within each of these four components could be a number of different programs that would be focused on driving one or more of the desired behaviors.  We also identified that while any of the components could activate any of the four motivational drives, that particular drives would be more readily activated by programs within specific components.  We’ve mapped this below:

R&R and the 4-Drives

So while both the incentive compensation and the non-cash components easily activated the drives to acquire and challenge, group trips and other recognition were more likely to tap into the drives to bond and defend.   This provided us with a framework to think about how we could leverage all four drives with various reward and recognition programs.

While this is a high level perspective, it does provide a company with way to think strategically about their reward and recognition system that aligns it with the 4-Drive Model.  We were able to map out specific programs within this framework that provided both a means for effectively driving behavior as well as leveraging all four drives.

To our knowledge, this framework has not been used previously within a large company.  We are very excited about how this is being applied and the impact that it will have.
Please let us know if you have any questions or thoughts by leaving a comment below.   Thanks.

 

 

 

 

 

 

4-Drive Summary

4-Drives I found this summary of Lawrence and Nohria’s “Drive” and thought that it was a nice summation of the book.   Josh Kaufmann does a nice job of laying out the key insights to the theory and some good ideas on how to apply the theory into the real business world.  I really like the final comment by Kaufmann regarding adding a drive around “feel.”  It is an interesting concept that I’m going to explore in more detail.

Click through to link to read more…

http://personalmba.com/driven/

Let me know what you think – leave a comment!

Remember – you can always follow me on Twitter @WhatMotivates

Four Drive Model Research Findings

Many of you have read the guest post by Kristen Swadley where she reviews her research on the 4-Drive Model.  Here is her Senior Honors Thesis presentation which goes into the details of her study and provides a wonderful overview of what her research uncovered.

Kristen Swadley – Senior Honors Thesis Presentation – Spring 2011 from MSSU Honors on Vimeo.

http://www.vimeo.com/23706400

 

Enjoy

What was the best incentive program you’ve ever been part of?

We’d like to know what you think was the best incentive program that you’ve ever been a part of – either as a participant, a designer, consultant or manager.

  • What was “it” that made the program stand out for you and make it special?
  • How was it different?
  • What did it do?

Leave a comment and let us know…just click below on “leave a comment”

Repost: We are NOT rational beings so why do we try to make rational incentive programs?

Take the blndfolds offTake off our rational blindfolds…

Dan Airely, Richard Thaley, Cass Sunstein, Daniel Kahneman, Ran Kivitz, and many more psychology and behavioral economics  researchers have shown that while we like to think of ourselves as rational, thinking human beings who are out to optimize our well being, we aren’t.

In fact, we are very far from it.

Sharon Begley at Newsweek wrote this interesting blog “The Limits of Reason” in it, she states, “But as psychologists have been documenting since the 1960s, humans are really, really bad at reasoning. It’s not just that we follow our emotions so often, in contexts from voting to ethics. No, even when we intend to deploy the full force of our rational faculties, we are often as ineffectual as eunuchs at an orgy.”

We see this all the time.  I wrote about it in my earlier post from today “5 Lessons from the Maze.”  We tend to act and behave in very non-rational ways.  There are lots of irrational types of behavior and thinking and lots of theory’s about them (i.e., Loss Aversion, Status Quo Bias, Gambler’s Fallacy, Hedonistic Bias, Anchoring, Reciprocity, Inequity Aversion, etc…).

Here is what is interesting – we tend to still design our incentive programs and our motivational strategies based on believing that people act in a rational manner. We create programs that have 10 different ways to earn, with multipliers, qualifiers, and ratchet effects.  We create programs with multiple components and factors that we think will drive specific behaviors and elicit particular performance results.  We believe we know what people want and use only extrinsic rewards to drive our results.

Ouch!

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A New Motivational Model Using the 4-Drives: Upcoming in 2011

Ok, this is a little bit of a teaser…we are in the process of doing a major overhaul of how we look at the 4-Drive Model.  We’ve talked about the need to update this model before (see here and here).  We are underway in getting that developed and should be launching it the first quarter of 2011.

Here is a sneak peak…the four main motivations as we’ve defined them are now renamed and constitute different elements:

1.  Personal Motivation- focus on the intrinsic motivators that we have and encompasses the Drive to Challenge & Comprehend

2. Reward Motivation- focus is on the extrinsic motivators that we have and encompasses the Drive to Acquire & Achieve

3. Social Motivation- focus is on the social drives that motivate us and includes the Drive to Bond & Belong

4. Passion Motivation (this name is still being hotly debated – but for now its what we are running with)… – focus is on the motivational element of purpose and passion – including defending one’s honor and tribe

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Rethinking the 4-Drive Model of Employee Motivation

I have been touting the 4-Drive Model of Employee Motivation since I first read the 2008 Harvard Business Review article “Employee Motivation: A Powerful New Model” by  Nohria, , Groysberg, and Lee.   It is a powerful theory on human motivation in general, and in particular, employee motivation.  First presented in the 2002 book, “Driven: How Human Nature Shapes Our Choices” by Lawrence and Nohria, the model outlines four main drives of motivation.

At the Lantern Group, we’ve been working with this model for almost three years now.  We’ve posted on it several times in this blog (see 4-Drive Model here, Impact on Leaders here, and other info here, here, here, here and here for just a few examples).

It’s  good – but not perfect.

Right away we realized that it needed to be tweaked.

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Teams – Part of the Motivation Equation

Team building

Team Building Fun!

We know teams

We do a lot of work helping improve how teams operate.  Some of it is straight old fun team building – you know the type where you go off-site for a day and do different types of games and activities (note – some people love these types of programs and others detest them with a passion).   Other programs we do are much more intense and involve really working on specific team issues and developing action plans for greater collaboration, communication, or productivity.

We’ve worked with big teams.  We’ve worked with small teams.  We’ve done programs for executives and for line-workers.  We’ve worked with teams that are working well and just want to get to that next level and teams that really are on their last leg and need immediate urgent care or they will implode.

We have done one hour fun sessions.  We’ve created on-going programs that last months and require intensive work by the participants.

Regardless of the type of team development we are doing – it is also part of building a more motivational organization.

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Passion or Lunancy – You Decide?

I was in South Dakota last week on a family vacation.  First off, I forget how beautiful South Dakota is and all that it has to offer.  Secondly, there are some really, really humongous carvings there…

Mount Rushmore

The original idea for Mount Rushmore is credited to South Dakota historian Doane Robinson who thought that it would increase tourism (he was a pretty insightful man).  His idea was to carve local famous people into some of the granite mountains of the Black Hills.  In 1924, after working on Stone Mountain, GA, sculptor Gutzon Borglum was brought in to carve the mountain.

Mt. Rushmore

Borglum expanded on the original idea and wanted it to be a National monument that focused on our presidents.  He insisted that his life’s work would not be spent immortalizing regional heroes but insisted that the work demanded a subject national in nature and timeless in its relevance to history.

Borglum started work on Mt. Rushmore in 1927 at the age of 60.  He worked the rest of his life on the mountain.

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Economic Growth Centers – Small Business Learning Initiative

Here is the link to the webinar I did with Economic Growth Centers (ECG), a 501C non-profit that I’m on the board of.  ECG’s mission is to strengthen the economic vitality of the Twin Cities Metro area.

One program that we are working on is to create an electronic small business education curriculum that can be freely accessed from our website by small business owners, managers and employees.  Our goal is to have an entire curriculum of educational webinars available free of charge, hosted by various experts in their fields.  This type of training or consulting would be cost prohibitive for many of the small businesses we aim to help.

If you would like to donate your time or expertise – please let me know kurt@lanterngroup.com or leave a comment.  We are looking for people to work with to create a one hour webinar that would teach small business leaders and employees a key business skill. If you are interested, let us know -we would love to hear from you!

Motivation Webinar Link

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