The book that turns our understanding of motivation on its head . . . and shows why most companies get it wrong.
There are few people with more experience and accumulated wisdom about the inner workings of business and how people can work together more effectively than Jon Katzenbach. His groundbreaking research has resulted in several important books, including The Wisdom of Teams and Real Change Leaders. Over the past several years he has turned his attention to one of the perennial questions of leaders everywhere: How do I motivate my employees?
Most everyone frets about how to devise schemes that will keep the troops revved up. Conventional wisdom—or at least the practice at most companies—often centers on money as the primary motivating force. Many also rely on intimidation, which like money generally has a short-term impact. But what Katzenbach has found in his research at many organizations is that both of these practices do little to build the long-term sustainability of an organization. For that you need a powerful force that has been—until this point—understood by few managers and implemented by fewer still: pride.
From the front lines to the executive suite, most people are motivated by feelings of accomplishment, approval, and camaraderie. It’s why the best employees strive well beyond performance levels that will yield them higher pay and why most true professionals relentlessly avoid retirement.
Why does Southwest Airlines consistently turn in the highest levels of performance and profitability of any company in the airline business? What can the U.S. Marines teach us about individual commitment that can be used in the for-profit world? How is General Motors overcoming its history of labor-management enmity through the efforts of “pride-builders” from both the union and the management side? By drawing on what he has learned from these and many other organizations, Jon Katzenbach provides a practical program for understanding the role of pride:
• Money is not the motivator most people think it is: Katzenbach shows why pay-for-performance programs by themselves result in employees who focus on self-serving behavior and skin-deep organizational commitment.
• Money tends to be a short-term motivational device and works best during times of growth, but pride works in bad times as well as good.
• Cultivating pride is an investment that yields high returns on workforce performance over time and is not nearly as costly as relying solely on monetary compensation and the turnover risks that accompany a “show me the money” culture.
Katzenbach shares unique insights and specifics about how the best mid-level pride-builders take advantage of the world’s greatest motivational force even in environments as challenging as General Motors and Aetna. He shows how managers at every level are missing a powerful lever if they are not instilling pride as a primary force for building their organization.
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Jon R. Katzenbach has been helping companies get extraordinary results from their employees for nearly fifty years. He was senior partner and director of McKinsey and Co.; he now directs his own firm, Katzenbach Partners LLC, a New York–based consulting firm that specializes in leadership, team building, and workforce performance. He is the author of Peak Performance and Teams at the Top and coauthor of The Wisdom of Teams and Real Change Leaders.
t turns our understanding of motivation on its head . . . and shows why most companies get it wrong.
There are few people with more experience and accumulated wisdom about the inner workings of business and how people can work together more effectively than Jon Katzenbach. His groundbreaking research has resulted in several important books, including The Wisdom of Teams and Real Change Leaders. Over the past several years he has turned his attention to one of the perennial questions of leaders everywhere: How do I motivate my employees?
Most everyone frets about how to devise schemes that will keep the troops revved up. Conventional wisdom or at least the practice at most companies often centers on money as the primary motivating force. Many also rely on intimidation, which like money generally has a short-term impact. But what Katzenbach has found in his research at many organizations is that both of these practices do little to build t
CHAPTER 1
PERFORMANCE, SUCCESS, AND PRIDE
Pride is the emotional high that follows performance and success. The more interesting proposition, however, is that simple recollections of past "wins" and an empathy for the pride we sense in others (e.g., watching a sibling receive a special award) produce an anticipation of future "successes" that motivates performance. Moreover, success is in the eye of the beholder; people view and calibrate success in different ways. Those who recognize these different connections often develop the ability to motivate people to higher levels of performance, both by the way they define "success" and by how they instill pride along the way. Unfortunately, instilling pride in others is easier to do in some environments than in others.
I first uncovered the power of the "closed loop of emotional energy" in an obvious place: high-performing workforces at Southwest Airlines, Marriott, the U.S. Marine Corps, and Microsoft. Pride is a natural by-product of the successes of those organizations. It is fairly common for their managers and leaders to draw upon pride as an ongoing source of motivation; those feelings are easy to come by. Yet what about companies that have historically not been remarkably successful? Can pride precipitate higher performance in those environments as well?
Certainly, the answer is yes--but it happens less frequently and is more difficult than in the perennial achievers. Not surprisingly, therefore, prospective "pride-builders" can usually learn more about how to instill the pride that leads to higher performance from the proven pride-builders in more traditional environments than from those in peak-performing environments. The difference, of course, is that in companies that experience perennial successes, pride follows naturally; in other organizations, pride-builders have to apply their ingenuity to instill pride during periods of low or sporadic business success.
PRIDE GENERATES HIGHER PERFORMANCE
We know that pride is a primary source of energy and emotional commitment in enterprises that consistently outperform their competition.1 While it is less obvious perhaps, we find clear evidence in traditional large companies that those managers who excel at instilling pride in their workers also deliver higher levels of both economic and market performance over time than their peers. For example, we asked the Manufacturing Managers Council at General Motors to identify twenty of the best "pride-builders" in GM's North American Manufacturing organization. Our case studies of these plant managers confirmed their reliance on pride as a primary source of motivation (described in more detail in chapter 6).
General Motors regularly measures its plants on five basic elements of performance: safety, people satisfaction, product quality, responsiveness to customers, and cost. When we compared the performance of the twenty plants of those managers along each of these important metrics, their results consistently exceeded that of their peers. Specifically, the pride-builders outscored other plants on an index comparison by 83 to 65 on safety, 79 to 69 on people satisfaction, 53 to 47 on quality, and 69 to 65 on cost. Only on responsiveness did the pride-builder index fall short, and that was caused by a model changeover at one plant plus the start-up of another during this period.
While it is always difficult to separate the "chicken and egg" aspects of performance results and feelings of pride, the best motivators believe that instilling pride is what enables them to get higher levels of performance from their people. Of the over fifty pride-builders we have studied during the last two years, all deliver superior performance results for their enterprise--and all attribute their success to an ability to instill pride among their people before the fact, i.e., before business success is assured and final results can be determined.
A BROAD SPECTRUM
Human motivation is a moving target. Since everyone's personal circumstances change over time, we are motivated by different things at different stages in our life. We each define success in different ways and take pride in doing different things well. As a result, the sources of pride that motivate us cover a fairly broad spectrum, some of which produce "good" results for the enterprises we work for and some of which produce "bad" results. In describing this spectrum, it is useful to categorize the sources of pride into two basic groups: self-serving and institution-building. Clearly, neither category is completely good or bad in terms of results for the enterprise. For example, self-serving pride can motivate a person to work hard to keep her job, earn more money, and influence more people to help her. These motivations are typically good for the enterprise. However, self-serving pride can also motivate people to pursue money and material possessions as well as power and position above all else. When these motives lead to the exploitation of others for personal gain, the enterprise suffers.
Similarly, institution-building pride can motivate people behaviors that are bad for the enterprise. For example, an overemphasis on individual skill development and "teaming" can cause people to take pride in goals that supersede company priorities, create "marketable resume" profiles, and pursue undisciplined teaming efforts in ways that are costly and confusing. Good results accrue to the enterprise only when the emphasis is on individual and group efforts that fit with organizational priorities and enhance long-term business success. The best leaders and managers will influence people to take pride in achieving personal goals that align with company goals, building skills that match company needs, and creating teams that achieve important business results. Institution-building pride typically favors the long-term success of an enterprise more than self-serving pride. Nonetheless, the challenge for any leadership system is to integrate sources of pride that will optimize the "good" motivational results and minimize "bad" motivational results--simply stated, to make sure that institution-building pride counterbalances self-serving pride.
Moreover, the forces that motivate us tend to shift depending on our personal needs as well as where we stand in the organizational hierarchy. Abraham Maslow's classic hierarchy of needs remains hard to dispute; the basic need for food and physical protection comes first. If you are stranded on a desert island like Robinson Crusoe or Tom Hanks in the movie Castaway, you are motivated by the need to survive until you can be rescued.
Beyond the survival imperative, however, we are motivated to provide safety and comfort for ourselves and our family. Only then, as Maslow clarified, do we seek fulfillment as individuals and as members of societal groups. Ultimately, we want to both "stand out as an individual" as well as "be part of groups we respect"--but these are secondary motivators as long as survival, safety, and comfort are at issue. While seldom finite, our creature comfort needs can usually be defined in monetary terms, although everyone seeks a different level of comfort. And when comfort is replaced by luxury on the need scale, wealth creation becomes a primary motivator.
After all, accumulating wealth "beyond basic need" is perhaps one of the great entrepreneurial pastimes. The Horatio Alger dream is alive and well. Every person is assumed to be free to earn whatever he or she can. Since promotions are invariably calibrated in monetary terms, the more your job pays, the more important you feel. The harder you work, the more money you expect to earn, and the more material possessions...
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