The higher the expectations, the lower the innovation results
There is a growing interest in creativity
and in innovation. More and more leaders see the need to increase the rate of
innovation. But many leaders are using old-fashioned methods to incentivize
these efforts. For instance they will give a large bonus if the innovation
meets or exceeds the targets. Most of the time this will have a negative effect on
the performance and not (the intended) positive effects.
Here is a quote from Dan Ariely, The Upside
of Irrationality:
“To summarize, using money to motivate people can be a
double-edged sword. For tasks that require cognitive ability, low to moderate
performance-based incentives can help. But when the incentive level is very
high, it can command too much attention and thereby distract the person’s mind
with thoughts about the reward. This can create stress and ultimately reduce
the level of performance.”
So, instead of huge bonuses it is much more
effective to:
-
Recognize innovators for their
efforts
-
Give them the resources
required
-
Support the innovation from the
top (in words and deeds)
-
Lead activities to change the
product-out culture into a customer-centric culture
-
Stimulate cross-silo
collaboration
-
Connect with customers on a
regular basis
Innovation does not only require the design
of new products or services, but also the design of a new way of working
together.
How are you stimulating innovations?
Enthusiasm drives Excellence!