Numerous companies have a difficult time building engagement and trust with their employees.
The problem doesn’t always have to do with their processes or procedures or even management behaviors –in many cases it has to do with how they communicate to their employees. In over 20 years of helping companies solve these issues, we’ve found that companies often don’t communicate with their employees in a way that helps them understand and buy-in to the very programs that are designed to engage them.
While some companies have significantly improved their ability to create professional-looking presentations and graphically appealing brochures, they still have not fully embraced bringing a behavioral science approach to their internal communications to communicate in a more human way.
Incentive compensation professionals work hard at developing incentive plans that drive employee motivation while also meeting their company’s strategic objectives. In the past, this has been achieved by using rules of thumb and stringent financial analysis.
Yet, hard work is not enough in today’s turbulent times.
Today, compensation professionals need to add a few more tools to their tool belt.
Specifically, they need to add a deeper understanding of behavioral science and communication strategy. A great incentive program can be a defining factor in an organization’s success but as the world evolves additional measures are needed to ensure that it is resonating with and being understood by the field. Adding behavioral science into the mix can significantly improve your program’s impact and the performance of your teams. Tie these principles together with award-winning communication and you have a home run.
This article highlights the key learnings from Kurt’s presentation at the “2020 World at Work Spotlight on Sales Conference”. The original slide deck is available below.
In 1937, paleontologist Gustav von Koeningswald was working on the island of Java in Southeast Asia, searching for new evidence of our early human ancestors. To achieve this goal, he needed to find fossils, and the apex of fossils was the skull. With an intact skull, paleontologists are better able to distinguish between ape and human.
But skulls were rarely are found
Instead, paleontologists needed to piece together a multitude of small skull fragments in a complex 3D puzzle. It was difficult work – difficult to find all the pieces and difficult to fit them together in the right way to reform the original skull.
To help alieve the burden of searching and finding the skull pieces, von Koeningswald enlisted the help of people from the local village. He did this by giving them an incentive. He paid them 10 cents per skull fragment that they delivered to him.
Friction is defined by Merriam-Webster as “the force that resists relative motion between two bodies in contact” or “the clashing between two parties of opposed views.”
In our last article, we identified three types of organizational friction (the resistance points within a company that limit its performance). Those friction points were caused by oversight or shortcomings in Policy, Culture, and Environment. Each type of organizational friction has its own unique root causes and manifests itself differently within a company.
No, this isn’t one of those government studies where you wonder how it ever got approved (i.e., how long can shrimp run on a treadmill or does playing FarmVille on Facebook help people to make friends and keep them?*).
Socks and behavioral science. The two do not seem to fit together, yet I consistently use my socks as a personal behavioral modification tool.
In today’s hyperconnected technology-driven world, it can be easy to overlook the simple time-tested solutions of the past. This holds true for communicating with and motivating your sales force.
With the consistent advent of new communications, new sciences, and new methodologies – shaking things up with a new (old) method can be a refreshing way to tap into your teams’ motivators.
Let’s take a little step back in time and talk about direct mail. Simple, well designed, customized mailers that tap into key behavioral insights can be just as effective as the newest technologies or communication tools when utilized correctly.
Think about it, we are flooded with messaging all day every day – both personal and business. With each organizational department trying to get their message out on top of that, it can be hard to manage all of the information. Technology can get lost in the fray, but unexpected personalized direct mail can disrupt the norm and grab back that attention. Combine this with behavioral science and you have a simple yet powerful tool.
Let’s take a look at an example, a postcard series we designed to help top achievers keep achieving and to nudge bottom achievers to end the plan period on a high note.
One customized to a high performer:
And one customized to a moderate performer:
While these may seem simple, there are some key behavioral insights that are being strategically targeted to drive performance.
In both versions we utilize:
Idiosyncratic Fit: We have higher motivation if we think that a program is customized to us. By adding the employee’s name, stats, and a customized message to help them improve we tap into this drive. Each message is framed for the greatest impact based on their performance and adding the physical component of the postcard further personalizes it.
Social Proof: We look to others to see how we should behave. There are two elements at play here. One: the messaging addresses the performance of their peers, pushing them to stay with or ahead of the pack. Two: this can be shared with a spouse, partner, or family member who can provide an additional level of support – for example, the reminder of a chance to partake in an awards trip with a partner can be very impactful.
Now, note that in the high performer card we tap into:
Loss Aversion: The pain of loss is greater than the pleasure of a similar gain. For high performers, the idea of having something valuable and then losing it is far more motivating than a “carrot” on a string.
And in the average performer card we use:
Gain Messaging: Framing the statement to focus on what can be gained from increased performance. With the moderate performers, where the perception is that there is more to be gained than lost, the gain messaging can drive a higher participation rate.
Try this with your sales force or reach out with the form below for help customizing and implementing this simple, effective technique within your team!
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Back in September, I partnered with Tim Houlihan to start “a monthly gathering of curious minds” which we called Behavioral Grooves. We thought it would be interesting to get like-minded people together to talk about applying behavioral science to life and work.
We had no idea if others would be interested in this…
We announced the meetup and were hoping to get at least a few of the friends that we had contacted to show up. We ended up with 24 people for that first session where we talked about habits – how they are formed and what people can do to improve them.
We were thrilled!
From there, it took off. We have over 180 members signed up to our meetup group and it is growing fast. We have had three monthly sessions as of early January 2018 and our fourth is lined up for two weeks from today. We have over 20 people who have made it to two or more of the sessions.
I guess we struck a nerve.
For our second session, we invited Professor James Heyman to speak and thought, hey, since he’s here, why don’t we interview him and make a podcast out of it. Thus, our Behavioral Grooves podcast was born. Tim and I both loved that so much that we decided that we didn’t want to wait for the next Behavioral Grooves session to record our next one – so we started to invite people and interview them – both live and over the internet.
To date, we have seven interviews recorded and three more in the works. These podcasts mirror the Behavioral Grooves sessions in that they are conversational in nature where we geek out over behavioral science and how we can apply behavioral science insights into our daily work and lives.
They have been a blast!
In reflecting on this, it appears to me that these two outlets provide us with a way of both learning and sharing. We want to be advocates for good, ethical use of behavioral science. We believe that there is much to learn and we can improve our work and lives by understanding and by applying these principles in a thoughtful and deliberate manner.
We also realized that we love the community that this is creating. A community of curious minds who are interested in science and the application of that science. A community of people that we can bounce ideas off of. A community of people that can push us to think about things from new perspectives.
This is ultimately what we have been building and hope that it grows and provides a place and outlet for others, as well as ourselves.
If you are ever in Minneapolis on the third Thursday of the month – please come and join us at our meetup (find out more info here) and if you can’t make that, please listen in to our podcasts (click here to find the latest).
Sometimes, it is the unexpected things that can inspire us.
I remember ripping this ad out of a magazine. I pulled it out and taped it on the wall next to my computer. It was the right time, the right moment in my life for this particular message. I had decided to quit my job and start a company.
Those first few months of going off on my own were scary. No steady paycheck. No insurance. Having just enough money in the bank to survive for three months. This message was one that helped inspire me to keep going.
To not let my fears stand in the way of my hopes.
To try something I never tried before.
To risk it.
To just do it.
Sometimes we need that inspiration. Words can create emotional appeals that grab us and don’t let go. Words can tug at the heart. They can move us to think in new ways. To explore new options.
Over the past few years, we have seen a shift in how organizations value their internal communications. In the past, employee focused communications were often an afterthought. Companies would spend significant time, effort and money on developing out their incentive plans, making sure they were designed to drive the right behaviors and performance, only to communicate it to the field in an e-mail with a 30-page, single-spaced legal contract attached.
In 1925, four climbers, led by Phil Smith, ventured north from Colorado to Jackson Hole, Wyoming to attempt to climb “The Grand Teton” mountain in the Teton Range.* The Grand had been summited before, but these four climbers were coming at it from a different route, one that had not yet been explored. From the valley floor of Jackson Hole it looked like they would have a relatively straight ascent to the peak.
The four climbers set out with high expectations of being the first to chart this new route. As they progressed up the mountain, it looked like they were getting closer and closer to the summit. One can imagine their feeling that this goal was within easy reach. That is until they came up to the top of what they thought was a ridge. To their dismay, instead of it being another ridge, it was the peak of an entirely different mountain. The Grand was almost a mile away with a sheer 450-foot drop to the saddle between the peaks. The four, not wanting to give up, attempted to rappel down the face of the cliff. They realized that it was too hard and too dangerous, so they gave up and headed back to Jackson Hole.
Before they left, they named this new summit point, Disappointment Peak.
It is not only climbers who run into disappointment peaks. We often fall victim to this same dismay when we realize that the goal that we had set out to achieve is harder, will take longer, requires more resources or effort than we first envisioned.
Often, we too give up.
The four mountaineers had fallen victim to an optical illusion of the Grand. When standing in the Jackson Hole valley if you look directly at the mountain, it seems as if Disappointment Peak is just part of the Grand. The two peaks appear to be one and the same (see image).
One of the elements of successful change is being able to anticipate how you are going to achieve that change. We like to plot out the steps that we need to make in order to reach our goal.
The problem comes in when we encounter our own mental illusions – when we think that the goal is much closer or easier than it really is.
One thing that both psychology and behavioral economics have shown us is that as humans, we are really good at self-deception. We have a number of innate biases that affect our belief formation and influence our thinking – from confirmation biases, base rate fallacies, availability heuristics, gambler’s fallacies, control illusion, and my favorite, the Dunning-Kruger effect (The tendency for unskilled individuals to overestimate their own ability).
Generally, we are overconfident in our abilities and underappreciate the difficulty that is required to achieve change.
These mental illusions set us up.
When our expectations of what this goal is going to cost us in terms of time, effort, energy, and resources does not match with reality and when we realize the summit is much further away than we thought – we become disappointed as well.
We are doing great on our diet and losing weight weekly until we hit that plateau and can’t seem to lose those last 15 pounds.
The first three chapters of the book flowed smoothly, but we now are encountering writers block and can’t even complete the first paragraph of the fourth chapter.
We stopped smoking for five weeks until that project at work stressed us out and we needed something to calm our nerves.
We had achieved our goal of making ten cold calls a day for the two weeks but felt dejected that we had not had one sale from those encounters.
Moreover, just like Phil Smith and his companions, we can see the peak in the distance, but can’t seem to rappel down that cliff that is between us and the summit.
Three things to do when you reach your disappointment peak
We cannot always find a way to keep trekking on and reach our goals, but here are a few things to try:
Step back and look for new routes.
Over the years we have conducted a team building event called the electronic maze (see 5 lessons from the maze). Envision a giant chess board comprised of 54 squares, where some squares beep and others do not, and teams are trying to get from one side to the other stepping only on non-beeping squares.
At one point in their journey through the maze, people tend to get stuck and keep running into beeping squares as they move forward to the other side. The path goes backward here – but EVERY TEAM we have ever worked with has repeatedly stepped on one or more of the “beeping” squares that are in front of them. Even after repeated failed attempts stepping on the same beeping squares over and over, they cannot fathom that if they just take a step backward, they will ultimately move forward.
Sometimes we just need to look around and see if there is a different path to our goal.
Find new tools/knowledge.
Do you have the right equipment to overcome your obstacles? Phil and his team attempted to rappel down the cliff and felt it too dangerous. Today, many climbers specifically go to climb and rappel down that very cliff. The equipment and knowledge that people have today are much better than what they had 90 years ago. Are there new or different tools that you could use to overcome your road block? Would additional knowledge help you in continuing your journey?
Push on through.
Sometimes we just have to grit our teeth and power on through. As Dory says, “Just keep swimming. Just keep swimming.” There are many times when we reach a point of dismay and our mental energy and enthusiasm collapse because it is going to be longer or harder than we thought.
If the goal is important, then sometimes the best solution is to continue to trudge on. We can think of this as applying Newton’s first law of motion, “An object at rest stays at rest and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” (NASA.com) Our movement towards the goal has stopped, so we need to apply an unbalanced force upon it to get it moving again.
Plan ahead for obstacles.
Just because our mental illusions often trick us, does not mean that we will always be fooled by them. Before beginning our journey, we can carefully map out the process and try to visualize what potential roadblocks we could encounter. That process helps prepare us for when we do run into an issue. In other words, we have primed ourselves and our expectations so that dismay will not fully knock us off our course. Specifically, we should be asking ourselves:
What might happen that could derail the journey
What are external forces that could impact this process
What are internal forces that could affect this process
If we run into one of these obstacles, how will we approach it (“If ________ happens, then we will do __________.”)
We should also tap into our social networks and see if other people we know gone through this process or attempted this change. These people can be our mentors and help work through with us some of the unforeseen obstacles that we had not thought about. Their experience and knowledge can not only help identify potential barriers and how to overcome them but also might point us on a route that avoids those obstacles altogether.
Reexamine your goal.
Lastly, reexamine your goal. Is it worth the effort, time and trouble that it will now take you to achieve? If it is, keep going for it. But don’t just blindly go on just because you started. Climbers too often focus on reaching the summit at peril to their own lives. Ed Viesturs, renowned mountaineer and bestselling author who’s summited Everest seven times says, “I’ve always had this motto that climbing has to be a round trip. I’ve always understood that getting off the mountain was more important than getting to the top…It’s OK. It’s not a failure…If you’re rushing, if you’re thinking it has to happen today, then you’re going to make bad decisions.” (Time.com) Sometimes it is ok to stop and say, not today. I’ll try this some other time when conditions are better, or I’m in a better spot.
*A common mistake is for people to call the Teton Range “The Grand Tetons.” The Grand Teton is a single mountain while the mountain range’s proper name is “the Tetons” or “the Teton range.”
**Thanks to Michael Anschel for introducing me to the story of Disappointment Peak.
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