Traditional reward systems like bonuses and commissions often backfire for cognitive and creative tasks, as demonstrated by the "candle problem" experiment.
A new approach to motivation based on autonomy, mastery, and purpose has been shown to be more effective, as seen in examples like Atlassian's "FedEx days" and Google's 20% time policy.
Outdated management principles focused on compliance and control need to be challenged, as modern knowledge work requires autonomy and self-direction, not just extrinsic rewards.
Meeting Notes:
The Flaw of Traditional Rewards Systems
Dan Pink discusses how traditional reward systems like bonuses and commissions often do not work well for tasks that require cognitive skills and creativity
References the famous "candle problem" experiment by psychologist Sam Glucksberg
One group was offered no reward, another small reward, and a third large reward for solving the problem quickly
The groups offered rewards actually took longer to solve the problem on average compared to the no reward group
This finding has been replicated across different cultures and contexts through numerous experiments
It is one of the most robust yet ignored findings in social sciences
Dan Pink states that the traditional "carrot and stick" or reward/punishment approach works for simple, routine tasks but not for more complex, cognitive, creative work
The New Approach: Autonomy, Mastery, and Purpose
Dan Pink proposes a new approach to motivation based on:
Autonomy - giving people control over their time, tasks, and techniques
Mastery - enabling people to continually improve at something that matters to them
Purpose - connecting people's work to a larger purpose or cause
Cites examples of companies embracing these principles:
Atlassian allows engineers 24 hour "FedEx days" to work on any project they want
At 3M, employees can spend 15% of time on any projects
Google with its famous 20% time policy where many new products emerged
The "Results-Only Work Environment" at some companies with no mandated working hours as long as work gets done
Challenging Outdated Management Thinking
Dan Pink argues traditional management principles based on compliance and control are outdated for 21st century challenges
Management as a field was invented in the 20th century to ensure compliance through incentives/punishments
For today's knowledge work requiring creativity and problem-solving, a new approach centered on autonomy and self-direction is needed
Uses example of Encarta vs Wikipedia to illustrate the power of intrinsic motivation over extrinsic rewards
Bridging the Disconnect Between Science and Business Practices
Dan Pink highlights the major disconnect between what science knows about motivation and what businesses actually practice
Businesses continue relying on outdated, ineffective reward/punish systems despite evidence showing their limitations
Calls for bringing motivation practices into the 21st century by embracing autonomy, mastery and purpose to unlock human potential
Dan Pink cites studies from leading economists at MIT, Carnegie Mellon, University of Chicago, London School of Economics - all showing negative impacts of rewards on performance for cognitive tasks
Dan Pink argues updating motivational practices based on latest science could potentially "change the world"