So why are financial incentives the only ones Boards use to motivate executives? How often do they realize they're driving poor performance through the use of monetary incentives? How often have they looked at trying to create different more effective incentives around mastery, autonomy and purpose (Pink's "Drive") or content, choice and collaboration (Kohn)? Perhaps boards don't know how to create those kinds of incentives.
Monday, September 26, 2016
Why Financial Incentives Then?
It's become a classic TED talk regarding motivation. Daniel Pink summarizes why financial incentives don't work when we need creative, analytical and strategic thinking to occur. Those kinds of incentives only work when we're trying to promote improvements in mechanical skills. This concept has been applied by many companies in terms of the workforce...but not for executives.
So why are financial incentives the only ones Boards use to motivate executives? How often do they realize they're driving poor performance through the use of monetary incentives? How often have they looked at trying to create different more effective incentives around mastery, autonomy and purpose (Pink's "Drive") or content, choice and collaboration (Kohn)? Perhaps boards don't know how to create those kinds of incentives.
Maybe we need to create different incentives for board members to juice up their creative performance.
So why are financial incentives the only ones Boards use to motivate executives? How often do they realize they're driving poor performance through the use of monetary incentives? How often have they looked at trying to create different more effective incentives around mastery, autonomy and purpose (Pink's "Drive") or content, choice and collaboration (Kohn)? Perhaps boards don't know how to create those kinds of incentives.
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