Using Money to Motivate Creates More Problems Than Benefits

Comments on: Employee Motivation and Lean Implementation – Part 2: Money

Well said. Nearly all "motivation" efforts such as bonuses create far more problems than benefits. Paying people fairly is important, if they don't have enough to live they will be distracted and seeking new options.

And if they are substantially underpaid compared to the market (even if they have enough to live comfortably) they will be prone to seek new alternatives and be disgruntled because they feel they are being treated unfairly.

The best "motivation" managers can provide is to eliminate the de-motivation created by poor practices in the management system.

Sadly these are often common and managers can keep themselves very busy just doing this. If not, they are likely very lucky and probably have no motivation problems to worry about.

Related: Why Extrinsic Motivation Fails - The Defect Black Market - Dangers of Extrinsic Motivation - Extrinsic Incentives Kill Creativity - A "Demotivated" Workforce is a Symptom of the Culture of the Organization - The Potential Benefits, Risks and Folly of Stretch Goals

Systems Thinking and Management Improvement

This is a response to a comment on my own blog post: Peter Senge on Systems Thinking

Great video on systems. It seems systems thinkers believe it to be a cure all. Deming’s addition of psychology, epistemology, and statistics and interactions is so much more powerful. What do you think? Is it all Japan needed because they had the other elements? Do we need more?

Senge has very good ideas. I would add to his thoughts more of what Deming, Scholtes, Joiner... said. I think many people get into the idea that their areas of interest is nearly everything that is needed.

I don't think Japan just needed systems thinking (for one thing there organizations start with more of that understanding). For another, a real problem in Japan is going along and not speaking up about problems. That is an issue everywhere but is much worse in Japan than the West. Japan has an obsession with customer service that would be valuable for USA organizations to learn from.

A big part of what makes Deming's framework so useful is he was continually learning and adopting new ideas (Senge does a lot of this compared to most people but I can't think of anyone in the Management area that is close to as good as Deming was at this). I do think most Deming folks today would benefit greatly from much more thinking a about the organization as a system. It is often very superficial in my experience (repeating phrases like "we need to break down barriers between departments" or "it is a mistake to optimize the part because it sub-optimizes the whole"). Those ideas are great but you need to manage based on that concept not just say it and move on.

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I can't remember if I have added a comment from my own blog here before :-/

Related: Why Do People Fail to Adopt Better Management Methods? - Leadership While Viewing the Organization as a System - A Good Management System is Robust and Continually Improving

Leadership: Finding the Right Path

Response to: The Simple Leader, Find Your Unique Path

Like the spiritual journeys of Buddhists, Gnostics, and Christians like Thomas Merton, when you are on your own journey, you must first seek to learn, understand, contemplate, and reflect on your circumstances and beliefs. Only then can you apply what makes sense to create your own path. Don’t simply accept what others say or copy what others do.

Very well said.

The value of being open to ideas that are not part of the dogma is overlooked. And as a leader highlighting those that challenge the dogma (such as Thomas Merton for the Catholic church) is wise for a leader to do. Of course, you need to highlight efforts that hold true to the spirit/core-values while challenging dogma. It isn't just different ideas that are needed but the right different ideas.

Bench in forest at the Abbey of Gethsemani (where Thomas Merton lived)

A Sign of Decline at Apple

Comments on: This Apple Store Sign Seems to be a Sign of Apple’s Broader Troubles

I agree that sign is more important than many people might think. For a company like Apple that spends likely hundreds of millions of dollars a year on design and conveying a message through that design (in Apple stores, with products, with presentations, with ads...) it is not acceptable. They have held themselves to high standards. When that starts to slip if they are not proactive it slips quickly.

For a normal business they would be at the mercy of the management company to fix the door and the manager of the store would pass the buck to them. I can say if I were the manager of that store for Apple, if it wasn't fixed immediately I would have it fixed myself (and then bill the management company). If it couldn't be fixed immediately I would have a decent sign put there and it would make sure it got fixed very quickly. That isn't the same action I would take if it were some small shop I was responsible for where I knew we could only afford a cheap place and things like broken doors take a while to be fixed. For an Apple store that is unacceptable.

My main complaint with Apple is the poor software quality over the last 5 to 10 years. Software quality started to slip and kept slipping and no-one at Apple that had the authority dealt with the decline. The Apple Maps fiasco was a symptom of this long term failure by Apple. Tim Cook responded to that symptom but I don't see Apple giving software quality nearly the attention it deserves. My MacBook Pro has had numerous software issues for years. I have looked at other hardware and it is very difficult to find hardware of the quality of Mac laptops. My next computer would likely be an Ubuntu laptop if I can find good enough hardware. Another option is installing Ubuntu on the MacBook and just using that most of the time (there are some reasons Mac software can be useful so having it as a fallback is a benefit). But it is sad that Apple has let software quality slide for so long.

Related: Practicing Mistake-Promoting Instead of Mistake-Proofing at Apple - Aligning Marketing Vision and Management - Human Proof Design - Vision can be a Powerful Driver but Most Often It is Just a Few Pretty Words

Priorities

Too often people chose "no" for the things they were planning on doing because they say "yes" to some new thing without comparing to what will have to be sacrificed in order to say "yes" to this new option.

Being open to new possibilities is good. But they must be considered within the context of what must be let go to accommodate them.

My comments on: The Simple Leader: Just Say No

Related: Manage Better by Managing Less - Carve Out Time to Think

A "Demotivated" Workforce is a Symptom of the Culture of the Organization

Comment on: Are You "Perfectly Designed" for Morale Issues? (Yes) – and Employee Surveys Won't Fix It. (Demotivators: Part 1) [original post was removed so I removed the link].

Creating a system that gives people pride in their work will cause many motivation issues disappear. A significant part of that is eliminating the de-motivation that exists in the management system:

Motivate or Eliminate De-Motivation

Build an Environment Where Intrinsic Motivation Flourishes


A "demotivated" workforce is a symptom of the culture of the organization. That is how the issue needs to be looked at to improve results. Blaming people and attempting to motivate without fixing the causes of demotivation is not effective.

Related: How to Deal with Motivation Problems - Motivation, Rewards, Performance Appraisals and Your Career - Dangers of Extrinsic Motivation - Stop Demotivating Employees - How to Motivate Front Line Workers

Interactions Among the Four Fields in Deming's System of Profound Knowledge

Question on Reddit:
I would like to see expansion of Deming's SoPK with more examples of interactions in the four fields of knowledge. Are you aware of any?

My response:

I think this is actually very common, but often it isn't explicitly mentioned. To explain this well would take a fair amount of time. Let me just give 2 quick examples

Distorting the System to meet a target

This certainly is about the interaction of understanding variation (in this case people not understanding data well enough and being mislead), psychology (how people respond to pressure to meet goals), theory of knowledge (not understanding the difference between the proxy value of data and the underlying truth) and systems thinking (how a system is likely to react to meet goals - distorting data and distorting the system, and using simple measures where those things work to get numbers).

Create a System That Lets People Take Pride in Their Work

Appreciating that results will be better when people are doing work they are proud of involves at least appreciation
for a system and psychology.

I think in reality nearly every example involves interactions. We can analytically separate out the one we want to discuss or the one that seems most influential in what we are looking at but in reality it isn't just one.
For example, data issues related to over-reacting to common cause variation is in the "understanding variation" realm. But it is also deeply ingrained in our psychology that we look for special causes. If our psychology was different it is very possible the mistake of "seeing" (and believing) special causes everywhere would not be a problem. But because those 2 area interact in the way they do it is an area of improvement for how we think and manage. By focusing on an understanding of variation we can limit the damage caused by are faulty psychology (seeing special causes where they don't exist - where it is just common causes). And that really integrates theory of knowledge and systems thinking (we chronically over-simplfy and ignore the large system).

Related: 94% Belongs to the System - Encourage Improvement Action by Everyone - Circle of Influence

Transforming a Management Culture

Thoughts on: Where Lean Went Wrong – A Historical Perspective

I believe that companies that say they are attempting to become lean fail to do so in the most important ways. I do believe most efforts result in improvement but usually are fairly limited by the existing management system and refusal to really change much.

More than "lean failing" I would say transforming to a different management culture fails. Saying lean fails makes it seem to me that what a lean management system was in use and failed which is not really the case it doesn't seem to me.

I wrote about these ideas on my blog: Why Use Lean if So Many Fail To Do So Effectively

and discussed them in this podcast on Building Organizational Capability.

Related: Why Do People Fail to Adopt Better Management Methods? - Transforming a Management System – A Case Study From the Madison Wisconsin Police Department - Culture Change Requires That Leaders Change Their Behavior - Change Management: Create a Culture Seeking Continual Improvement or Use Band-Aids?