Best practices motivating employees (2007) 0061145610

BARRY SILVERSTEIN

B E S T P R A C T I C E S

MotivatingEmployees

BRINGING OUT THE BEST IN YOUR PEOPLE

PREFACE

1 UNDERSTANDING MOTIVATION Motivation on the Job 9 Motivation Is Management’s Role 13

2 ESSENTIAL SKILL I: BEING A MOTIVATIONAL MANAGER

Believing in Others 24 Communication 34 Motivating Individuals 44 Motivating Teams 48

3 ESSENTIAL SKILL II: DEALING WITH DE-MOTIVATION

Hiring to Reduce De-motivation 58 What’s De-motivating Your Staff? 66 Difficult Situations 78

Contents

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1

21

57

4 ESSENTIAL SKILL III: REWARDING MOTIVATED EMPLOYEES

Recognition versus Rewards 87Barriers to Rewards Systems 89Setting Up a System 93Using Nonmaterial Rewards 98Using Material Rewards 108

5 ESSENTIAL SKILL IV: MOTIVATIONAL LEADERSHIP

Leading During Change 121Leading During Good Times 125Leading During Difficult Times 131

Other Challenges 133

OFF AND RUNNING 136

RECOMMENDED READING 140

INDEX 146

ABOUT THE AUTHOR

CREDITS

COVER

COPYRIGHT

ABOUT THE PUBLISHER

85

119

Preface

How do you motivate people? How doyou get them excited about doing a greatjob? How can you inspire them to workharder? How can you recognize signs ofde-motivation? Or, if you move into a newjob and inherit a de-motivated staff, whattactics can you use to turn individualsaround? How do you fire someone whorefuses to cooperate? How do you keep yourstaff motivated and moving forward if yourcompany is undergoing major change?

In this book, we distill the wisdom ofsome of the best minds in the field ofmanagement to tell you how to do a betterjob at motivating your people and creatingan energized, motivated workplace that

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supports the goals of your company. Thelanguage is simple and the design colorfulto make the information easy to grasp.

Quizzes help you assess your knowledgeof motivational issues. Case files showhow companies have tackled toughmotivation problems. Sidebars give you abig-picture look at motivational challengesand highlight innovative, out-of-the-boxsolutions worth considering. Quotes frombusiness leaders will inspire you as you faceyour own challenges. Finally, in case youwant to dig deeper into the motivationalissues, we recommend some of the mostimportant business books available. Theauthors of these books both influence andreflect today’s thinking about managingpeople, motivating them, and related issues.Understanding the ideas they cover willinspire you as a manager.

Even if you don’t dip into these volumes,the knowledge you gain from studying thepages of this book will equip you to dealfirmly, effectively, and insightfully with themotivation issues you face every day—tohelp you make a difference to your companyand in the lives of the people who supportyou.

THE EDITORS

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�UnderstandingMotivation

“The only way to getpeople to like workinghard is to motivate them.Every individual in anorganization is motivatedby something different.”

—Rick Pitino,NCAA basketball coach

�M

ost people inbusiness wouldagree that thebest employees

are motivated ones. Motivatedemployees are the individualswho take the initiative, who wantto do good work, who move upthe ranks, and who are generallythe most likely to succeed.

M O T I VAT I N G E M P L O Y E E S

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ARE YOU A MOTIVATIONAL MANAGER?

Read each of the following statementsand indicate whether you agree or dis-agree. Then check your score at the end.

1. I think motivating employees shouldbe the responsibility of management.

�� Agree �� Disagree

2. I generally can tell when an employeelacks motivation.


3. I am honest and open in sharingessential information with employees.


4. I may be demanding, but employeesknow that they can count on me tosupport them.


5. I encourage employees to take owner-ship of their jobs and feel as if theyare part owners of my organization.


6. I use positive reinforcement oftenwith employees and present negativefeedback in a constructive manner.


Self-Assessment Quiz

U N D E R S TA N D I N G M O T I VAT I O N

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7. I care about employees as people andwant to help them succeed.


8. I think it takes more than good pay tomotivate employees.


9. Employees would say that I makethem feel good about working in myorganization.


10. Employees would say I inspire themto do their best.


Scoring

Give yourself 1 point for every questionyou answered “Agree” and 0 points forevery question you answered “Disagree.”

Analysis

8–10 You are an excellent motivationalmanager.

5–7 You could use some work on yourmotivational skills.

0–4 You have a lot more to learn if youwant to motivate employees.


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Employees who are motivated are loyal and dedi-cated and become ambassadors of good will fortheir companies. In fact, it’s widely accepted thatcompanies with motivated employees have lowerturnover and tend to outpace their competitorsin sales and profi ts. The more motivated yourworkforce is, the higher your organization’s pro-ductivity will be.

Motivating employees, then, is recognizingthat employees are essential to the company’sability to succeed. It is about building a cor-porate culture of people who want to beexceptional at their jobs and who are proud ofwhere they work. Motivating employees is notabout giving people something they do notdeserve or showering them with benefi ts andrewards so they will work longer hours or acceptpoor working conditions.

“Whenever anything isbeing accomplished,it is being done, Ihave learned, by amonomaniac with amission.”

—Peter Drucker,management guru and author

(1909–2005)


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Although it is important to keep motivatedemployees motivated, the larger challenge formanagers is fi nding out what motivates the otheremployees. Motivation is a very personal thing.What motivates some employees won’t motivateothers. Yet there are certain motivators with suchwide appeal that most everyone responds positively.

DECLINING MOTIVATION

In about 85 percent of companies,employees’ morale has been found todecline significantly after the first sixmonths in a new job. It then continuesto deteriorate for years.

A 2006 study showed that fairsalary and benefits, the opportunity toaccomplish good work, and satisfyingrelationships with coworkers arevital. If just one of these factors ismissing, employees are three timesless enthusiastic than employees at acompany where all three factorsare present.

Findings are based on surveys ofabout 1.2 million employees at 52primarily Fortune 1000 companiesfrom 2001 to 2004.SOURCE: “Stop Demotivating Your Employees!” byDavid Sirota et al., Harvard Management Update(January 2006).

Behind the Numbers


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This book will look at many of these moti-vators. We’ll also discuss what it takes to be amotivational manager, how to keep employeemotivation from falling, and why motivationalleadership is essential.

As you consider how to motivate your employ-ees, a basic understanding of the psychology ofmotivation is helpful.

The foundation of modern thinking aboutmotivation is Abraham Maslow’s “hierarchyof needs,” introduced in 1943 and still used bypsychologists, business managers, marketers,and others to understand what motivates people.Maslow theorized that after humans have mettheir basic physiological needs, they want to sat-isfy successively higher social and spiritual needs.Maslow identifi ed four levels of needs abovethe most basic needs for food, sleep, and sex.Maslow’s hierarchy is often shown as a pyramid,

“Motivation is a fi re fromwithin. If someone elsetries to light that fi reunder you, chances areit will burn very briefl y.”

—Stephen R. Covey,author of The 7 Habits of Highly Effective People


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LEVEL 2 NEED FOR SAFETY

Physical safety and freedom from threats,economic security

LEVEL 3NEED FOR LOVE AND BELONGING

Intimacy, friendship, family,religious group

LEVEL 4NEED FOR ESTEEM

Respect and recognition

LEVEL 5 NEED FOR SELF-ACTUALIZATIONOpportunities for creativity, innovation,

problem-solving, and learning

LEVEL 1PHYSIOLOGICAL NEEDS

Food, water, sleep, sex

with the basic needs at the base, and the need forself-actualization at the tip of the pyramid.

Applying Maslow’s theories in the workplaceprovides some insight into what motivatesyour employees. All employees express a basicconcern for job security (the “safety” level ofMaslow’s hierarchy). Once their need for jobsecurity is fulfi lled, employees will then look for

MASLOW'S HIERARCHY OF NEEDS


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recognition and rewards for work well done (the“esteem” level). And if they feel both secure andrecognized, they will be looking for job satisfac-tion (the “self-actualization” level), that is, thepleasure of growing within the job, the beliefthat the work is important to society, the sensethat the work refl ects the individual’s values andgoals. If you want engaged, motivated employees,make sure that they feel confi dent in their jobs;let them know you appreciate their effort, espe-cially when it has been extraordinary; and give

MOTIVATION IS PERSONAL

It’s your responsibility as a manager tokeep your staff motivated.

�� Do get input from employees aboutwhat they want before setting up amotivational program.

�� Don’t assume that every employeereacts the same way to a givenmotivational driver.

�� Don’t take a “my way or the high-way” attitude toward managingemployees.

�� Do let employees take ownershipresponsibility for their jobs.

�� Don’t fail to address lack of moti-vation as soon as you see it.

Dos & Don’ts


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them opportunities to learn and grow, to take onprojects that would be meaningful (socially orpersonally) and that would put them closer toachieving their goals.

MOTIVATION ON THE JOBIn a recent study, described in the book TheEnthusiastic Employee: How Companies Profi t by GivingWorkers What They Want (Wharton School Pub-lishing, 2005), authors David Sirota, Louis A.Mischkind, and Michael Irwin Meltzer identifythree goals sought by most workers. Employeeswant equity (specifi cally, fair pay, benefi ts, jobsecurity), achievemen t (that is, to be proud oftheir work and their accomplishments, and, by

“IF YOU DON’T . . .”It is remarkable what a differencewording can make.

Some managers naturally fall into usingsuch phrases as “If you don’t get thatreport done . . .” or “If you don’t give mean answer today . . .” or “If you don’tcomply with the company rules . . .”

The “If you don’t” phrase—oftenperceived as a threat instead of arequest—is a universal turnoff. Nexttime, try turning the negative into apositive, as in, “I’d appreciate it if youcould . . .” You’ll probably see a verydifferent reaction.

Outside the Box


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extension, praise, recognition, and growth on thejob), and camaraderie (cordial relationships withcoworkers).

None of these goals is particularly surprisingin and of itself. After all, it is only common sensethat workers desire fair pay, job security, andbenefi ts. These basic needs, in fact, are repre-sented in the “safety” level of Maslow’s hierarchyshown on page 7.

Similarly, it’s easy to understand that workerswant to have good relationships with the col-leagues with whom they spend so much time, orthat they want to take pride in their work andaccomplishments. It follows that, if employees

AN UNDERAPPRECIATED WORKFORCEEmployees aren’t adequately recog-nized or rewarded. Recent reportsindicate that half of surveyed workerssay they receive little or no credit, andalmost two-thirds say management ismuch less likely to praise good workthan to offer negative criticism whenproblems occur.

Research findings are based onsurveys of about 1.2 million employeesat 52 primarily Fortune 1000companies from 2001 to 2004.SOURCE: “Stop Demotivating Your Employees!” byDavid Sirota et al., Harvard Management Update(January 2006).

Behind the Numbers


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CASE FILEMOTIVATION CAN BE FUN

Having fun in the airline industry? Itjust didn’t seem possible until HerbKelleher started Southwest Airlines.

Known for its corporate sense ofhumor, Southwest was long the majorsuccess story in an industry besetwith bankruptcies. One of the reasons,says former CEO Kelleher, is the funthat management and employees havetogether. The airline is big on parties,often throwing award banquets tocelebrate their people, complete withbaby pictures and videos.

Southwest also has a personal touch.In 1966, the airline dedicated a planeto its 25,000 employees, listing alltheir names on the overhead bins. Atcorporate headquarters, employees’pictures line the walls. Every employeegets a birthday card as well as a cardcommemorating their anniversary withthe airline.

It’s all part of Kelleher’s simple yetpowerful philosophy: “We constantlydo things that show our dedication andour gratitude to our people.”SOURCE: “Have Fun, Make Money” by Stephanie L.Gruner, Inc. Magazine (May 1998).


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feel good about what they do at work, they willbe more motivated to come to work the next dayand do their best.

What is startling about Sirota, Mischkind, andMeltzer’s study is their fi nding that to main-tain motivation among employees, all threegoals must be met. In the absence of just one ofthem, motivation wanes dramatically. Althoughmotivation is high for most employees whenthey start a new job, the study reveals, it dropsdramatically after just six months and keepsdropping after that.

In other words, the stakes are high. If you don’taddress these three motivational issues rightaway, you will face consequences.

“Nothing is worse formorale than a lack ofinformation down in theranks. I call it NETMA—Nobody Ever Tells meAnything.”

—Ed Carlson,former CEO of United Airlines

(1971–1990)


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MOTIVATION IS MANAGEMENT’S ROLESo what can a manager do to maintain a moti-vated workforce?

First, pay your people as well as you can. Dowhat it takes to provide benefi ts. Too expensive?Before you jump to that conclusion, weigh in thecost of hiring and training the constant roundof new employees required to replace those whodecide to leave.

Workers are frustrated by a lack of commu-nication from management. Give them enoughinformation to do their jobs properly and tomake them feel respected and included.

Run an equitable workplace. Don’t continue topay people who don’t pull their weight. Considerreward systems such as profi t sharing based onindividual and company performance. In some

WHAT EMPLOYEES WANT

Keeping in mind what motivates mostemployees is essential. Failing toaddress even one of these three factorswill negatively affect morale:

• Fair treatment in pay, benefits, andjob security

• The opportunity to achieve and takepride in one’s work

• Good relations with coworkers

• POWER POINTS •


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companies, employees are given stock options;ownership provides a sense of responsibility thatin itself can be self-motivating. In addition, don’tforget intangible benefi ts, which don’t cost youa cent, such as providing a bit of fl exibility for a

HOW TO GET RESULTS

Motivating people takes work, but yourefforts will be repaid with a more dedicatedand loyal workforce, lower turnover rate, andhigher productivity.

�� Do create an environment of trust.

�� Don’t assume employees are naturallymotivated.

�� Do identify each employee’s individualmotivators.

�� Do acknowledge good work often.

�� Do make a big deal of specialachievements and accomplishments.

�� Don’t let a new employee’s enthusi-asm wane.

�� Don’t restrict an employee to mun-dane tasks without responsibility.

�� Don’t keep an employee in the samejob for too long.

Dos & Don’ts


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parent who needs to take two hours off to see achild in a school play.

Second, don’t treat employees as if they weredisposable. Tread carefully around layoffs andreorganizations. Avoid them or handle them

�� Do offer opportunities for learning andadvancement.

�� Do take every opportunity to broadenemployees’ jobs.

�� Don’t keep all the decision-makingauthority for yourself.

�� Don’t assume competitive pay solvesmotivational problems.

�� Do make employees part of a teamand foster cooperation.

�� Do build employees’ self-esteem byusing praise instead of criticism.

�� Do look for ways to have fun.

�� Don’t minimize the importance ofgood relationships with coworkers.

�� Don’t structure a rewards system thatis inequitable.


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carefully if you can’t: Remember that workerswho remain with the organization will feel as iftheir lives and careers hang in the balance everytime the company faces tough times. There isnothing more demoralizing

Third, make people feel good about theirwork on a daily basis. First, show them whytheir work is important and how it fi ts into alarger mission.

Second, give them feedback to let them knowwhen they are doing a good job, and don’tforget about formal quarterly, biannual, andannual reviews. Together, these will have a tan-gible benefi t for you as an employer: By praising

CASE FILEMOTIVATING WITH OUTSIDE BENEFITSPR firm Metzger Associates wantedto reduce turnover. CEO John Metzgerdecided to allow his 30-plus employeesto design a “Live Long and Prosper”program that focused on activities out-side the workplace. They came up withfour categories: physical fitness, out-door living, relaxation, and education.Employees were reimbursed up to aset dollar amount for any activity theyselected in each category.

In its first year, the program reducedturnover from 15 to 2 percent.SOURCE: “Managing One-to-One” by LeighBuchanan, Inc. Magazine (October 2001).


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the kind of effort and performance you want tosee all the time, you are teaching the employeeto do a better job.

Training over time will yield personal growth,which also promotes a positive attitude. Offercareer advancement opportunities and thechance to learn. And don’t throw up roadblocks to accomplishment in the form of need-less paperwork and approvals.

Finally, promote good feeling among employ-ees whenever possible. Be alert for problemsthat arise with diffi cult people and take action.Promote opportunities for employees to get toknow each other—such as company events thatinspire employees and instill company spirit.

“I have yet to fi nd theman, however exaltedhis station, who didnot do better work andput forth greater effortunder a spirit of approvalthan under a spirit ofcriticism.”

—Charles Schwab,founder of Charles Schwab & Co.


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Foster projects that involve joint effort via workgroups and teams. For you, the benefi t is clear:According to many business writers today,teams can produce better work than individualsworking alone.

What it comes down to is that nurturing moti-vation is one of management’s most importantroles. If management does not actively pursue

“It might be statisticallymore rare to reachgreatness, but it does notrequire more sufferingthan perpetuatingmediocrity. In the end,it is impossible to havea great life unless it is ameaningful life. And itis very diffi cult to have ameaningful life withoutmeaningful work.”

—Jim Collins,author of Good to Great


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ways to keep employees satisfi ed and productive,even those who are naturally motivated can losetheir drive.

A motivated workforce does not just happen.Companies with a motivated workforce are man-aged by people who understand how to motivateothers and work hard at doing that.

Respect for employees permeates the cultureof many successful companies. Companies witha motivated workforce offer employees careeradvancement. They participate in the employees’careers and provide benefi ts that enhance theemployees’ personal lives.

Just as important, great companies with amotivated workforce encourage managers towork cooperatively as part of a team with theiremployees. Rather than distancing themselvesfrom the rank and fi le, these managers areapproachable, compassionate leaders. They mayexpect a great deal of the people who work forthem, but they give as much as they get.

�Essential Skill IBeing a MotivationalManager

“Motivation is the artof getting people to dowhat you want them todo because they want todo it.”

—Dwight D. Eisenhower,U.S. general and president

(1890–1969)

�S

ome managers learn the hard way that they cannot motivate others if they themselves are not

motivated. As a manager, you set the tone for the workplace. Your attitude permeates your work group. If you are enthusiastic, others will be as well.


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If you are energetic, enthusiastic, positive, andassertive, your employees will pick up your style.If you practice self-motivation, it will be thatmuch easier to motivate your employees.

This is not all it takes, however. A motiva-tional manager also learns how to read his or heremployees. The manager watches body language,evaluates behavior, and assesses performance.The manager gets to know what individualemployees want and need. The manager under-stands each employee’s motivators.

The motivational manager tends to be onestep ahead of employees, anticipating what theymight be feeling at any given time. The manageris sensitive, compassionate, and understanding.He or she can be demanding but does this with-out being harsh, abrupt, or authoritarian.

The motivational manager knows how to havefun with the staff. He or she may throw an occa-sional party, take everyone out to lunch, or holdsome other surprise event. The manager recog-nizes employees who accomplish something bypraising them publicly. If criticism of a certainbehavior or performance is required, the moti-vational manager takes the employee aside andhandles it in private.

The motivational manager rewards employeesindividually when appropriate, and as a groupwhen warranted. Rewards may conform to com-pany policy but are distributed equitably. Anemployee’s loyalty, dedication, and hard work donot go unnoticed.

The motivational manager is also a moti-vational leader, one who instills confi dence in

B E I N G A M O T I VAT I O N A L M A N A G E R

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employees and inspires them to succeed. Manyemployees will want to emulate a manager whohas spirit and determination.

Being a motivational manager is not necessar-ily easy, but it creates the most dedicated, loyalworkforce an organization can have.

PUSHING THE RIGHT BUTTONS

Managers who know how to motivatetheir employees may not be trainedpsychologists, but they know a lotabout human behavior.

Motivational managers recognizethat each employee has a differentmotivational need. One employee mightcrave public recognition, while anotherresponds to one-on-one encouragement.Motivational managers find out whichbuttons to push by observing theiremployees’ personalities and learningwhat their goals are.

Most employees’ buttons fall intoa few basic categories, such as thedesire for recognition, rewards, andthe opportunity for advancement. Bymatching an employee to a category,and applying rewards already in placewithin an organization, a managercan create a powerful motivationalexperience for an employee.

The BIG Picture


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BELIEVING IN OTHERSBecause employees’ enthusiasm for their job typ-ically wanes over time, managers must start theworking relationship off with a bang, providingpositive motivation from the get-go.

With new employees, a manager can imme-diately establish a motivational workplace byexhibiting personal enthusiasm and a positiveattitude. Just as important, the manager mustshow that he or she trusts each employee.

Trust cannot occur without respect. Themanager who respects every employee has anexpectation that the employee will do the jobwell. The manager delegates work with confi -dence and does not micro-manage or meddle.The manager offers assistance when necessarybut generally allows the employee the leeway andresponsibility to get the work done.

“The task of managementis to make peoplecapable of jointperformance, to maketheir strengths effectiveand their weaknessesirrelevant.”

—Peter Drucker


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HOW TO STAY MOTIVATIONAL

Being the kind of manager whoconstantly motivates employees to workdiligently and effectively is a matterof using certain good managementtechniques.

�� Do exude energy and enthusiasm.

�� Do practice self-motivation—it willbe that much easier to motivateemployees.

�� Do anticipate what employees wantand need.

�� Don’t be afraid to be demanding.

�� Do respect your employees.

�� Do recognize and reward employeeloyalty, dedication, and hard work.

�� Do create motivational eventsto keep your staff positive andinvolved.

�� Don’t criticize in public—keepnegative comments private.

�� Do offer public praise.

�� Do instill confidence in employeesand inspire them to succeed.

Dos & Don’ts


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By handling an employee in this manner, themanager is sending the signal that he or shebelieves in the employee. The cornerstones ofthat belief are trust, confi dence, and respect.

Trust means giving the employee responsibility. Itmeans believing that the employee will do the rightthing—that he or she will follow policies and pro-cedures and will accomplish the assigned task. Trustalso involves trusting yourself enough to let go. Itmeans understanding that while an employee maynot handle things exactly as you would, you canaccept that, as long as the end result is the same.

Confi dence in an employee is based on yourcertainty that the individual will perform to your

A MANAGER’S EXPECTATIONS

Having faith in your staff meansdelegating with confidence and notmicromanaging. It is important todisplay the following key sentiments:

• Trust – You assign a task with thecertainty that it will be done well.

• Confidence – You assume that anemployee will perform to yourexpectations.

• Respect – You treat an employee theway you yourself would want to betreated.



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expectations. It means not worrying about tasksbeing completed correctly or on time. It meansfeeling comfortable that the employee will dowhat is necessary and right, even if you are notchecking up on him or her. It is diffi cult to haveconfi dence in someone else if you lack confi -dence in yourself.

Respecting employees means giving them thebenefi t of the doubt. It means treating each indi-vidual as you yourself would want to be treated.

HOW TO SHOW YOUR RESPECT

Demonstrating that you value youremployees involves treating them wellevery day.

�� Don’t ask an employee to performan unpleasant task without provid-ing a positive motivational reason.

�� Do tell the truth about a companyrestructuring or layoff, especially ifit is in an employee’s department.

�� Don’t assume that showing strongleadership means giving a publicdressing-down to an employee whohas failed at a task.

�� Don’t lose faith in all your employ-ees just because one of them hasbetrayed your trust.

Dos & Don’ts


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CASE FILEIN THE FACE OF TRAGEDYSome 3,000 employees could havelost their jobs in 1995, after a firedestroyed Massachusetts-basedPolartec-fleece manufacturer MaldenMills, a vestige of New England’s once-thriving textile industry.

But third-generation owner AaronFeuerstein did the unthinkable: Hereached into his own pocket andcompany reserves to keep all 3,000 ofhis employees on the payroll with fullbenefits for three months—at a cost of$25 million. He considered his workersan asset, not an expense. Feuersteinbecame nationally revered for hisleadership during difficult times andfor his exceptional belief in his people.

Although the cost of rebuilding theplant, coinciding with a decliningmarket and competition from low-costimports, forced the company to filefor Chapter 11 protection from itscreditors in 2001, it is thriving today,largely because of major governmentcontracts—which its skilled andexperienced employees enable thecompany to fulfill.SOURCES: “A CEO Who Lives by What’s Right”by Mary McGrory, Washington Post (December 20,2001).


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It means being honest and straightforward.Respect also means recognizing an employee’sefforts and rewarding an employee’s loyalty,dedication, and hard work.

Trust, confi dence, and respect may seem likebasic concepts. But it is surprising how few

A CLINICAL LOOK AT MOTIVATIONMotivation has long been studied bybehavioral psychologists. In 1961,psychologist David McClelland sug-gested that human motivation wasbased on three dominant needs: theneed for achievement, power, andaffiliation. To measure those needs,McClelland co-developed the ThematicApperception Test.

Subjects are asked to look atthirty-one images of different socialand interpersonal situations and tomake up a story about each one.Psychologists then interpret the storiesto determine what they reveal aboutthe person’s needs for achievement,affiliation, and power. Today, theresults of the test are used to suggestthe type of job that would best suitthat individual.SOURCE: Evocative Images, edited by Lon Geiserand Morris I. Stein (The American PsychologicalAssociation, 1999).

The BIG Picture


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managers really embrace them. The fact is, manymanagers themselves are not trusted or respectedby their superiors, because their superiors maynot believe in them. This is particularly truein highly structured organizations with manymanagement levels, and in organizations run byself-made entrepreneurial owners who may haveadopted an authoritarian or controlling attitudetoward employees.

Another reason few managers operate on trust,confi dence, and respect lies in the prevailing phi-losophy of modern American business. Today,when a company needs to improve productivityand profi tability, reductions in staff are com-monplace. When a merger takes place, one of the

BETRAYAL

On occasion, an employee betraysyour trust. When that occurs, takecorrective action immediately. Meetwith the employee privately andprovide specific feedback about howthe individual let you down. Stay calmand objective, but let the employeeknow you are disappointed. Give theindividual the chance to explain and tomake amends. Work together to assureit does not happen again. If necessary,create a plan for improvement, and getthe employee to agree to it.

Plan B


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fi rst changes is in the workforce; positions areeliminated and people let go.

When employees are regarded as a line itemthat can be cut at will, it is easy to forget that theworkforce consists of individuals with uniqueskills and knowledge bases. Reducing salaries,cutting benefi ts, and laying people off becomesan impersonal means to an end.

Managers who must carry out the organi-zation’s orders to reduce staff under the above

WHAT NOT TO DO

Even when managers have the best ofintentions, not following through onpromises has a negative effect on theiremployees’ motivation. Do any of thesebehaviors sound familiar?

• You tell an employee you will followup on an issue but never do.

• You keep an over-qualified employeein a low-level position rather thanmaking an effort to give him greaterresponsibility.

• You berate an employee in front of agroup or at a meeting.

• You arrange a group event and thenpostpone it several times because“everyone is too busy.”

Red Flags �


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conditions may become fearful of their ownpositions and take out their frustration onemployees as a result. Alternatively, they maywant to demonstrate to senior management thatthey are “tough” and can deal with cutbacks orlayoffs decisively.

Unfortunately, managers who themselves arenot trusted or respected may not trust or respectthose who work for them. The cycle continues,

THE UNDER-MOTIVATED WORKFORCE

Keeping employee motivation high is aconstant management challenge.

• 69 percent of operating managerscalled the “lack of employee moti-vation” the most annoying problemthey face in their organization.

• 73 percent of employees said theyare less motivated today than theyused to be.

• 84 percent of employees said theycould perform significantly better ifthey wanted to.

• 50 percent of employees said theyare only putting enough effort intotheir work to hold onto their jobs.

SOURCE: Super-Motivation by Dean R. Spitzer(AMACOM, 1995).

Behind the Numbers


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unless some manager recognizes the vital rolethat trust, confi dence, and respect can play inmotivating employees—and moving the com-pany from good to great.

HOW TO GET YOUR MESSAGE ACROSS

When you speak to employees, yourwords carry a lot of weight—not onlywhat you say, but also how you say it.

�� Do be aware of how you speak andwrite—it makes a difference toemployee motivation.

�� Do use active listening in all con-versations with employees.

�� Do try to forestall the us-versus-them workplace mentality.

�� Do speak clearly and at a comfort-able, relaxed pace when addressingstaff.

�� Do use “you” and the person’sname to warm your praise.

�� Do say “I” when criticizing anemployee to diminish the potentialfor argument.

�� Don’t forget to use body languageto project sincerity, concern, andhonesty.

Dos & Don’ts


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COMMUNICATIONThe way you communicate with employees canhave a direct effect on their motivation. Yourverbal statements, your body language, andyour written communication all play a role inmotivating employees.

The Importance of ListeningA common complaint among employees is thattheir managers don’t listen to them. This is a

BODY LANGUAGE MATTERS

Nonverbal communication can be apowerful motivational tool.

• Eye contact expresses sincerity andholds the listener’s attention.

• Smiling when you speak makespeople want to focus on you.

• Relaxed arms and open palms sug-gest honesty.

• Leaning forward signals an attitudeof acceptance.

• Leaning backward suggests doubtor resistance.

• Crossed arms, a furrowed brow, orlack of eye contact imply tension ordisagreement.



35

certain motivation-killer. One of the best ways toaddress this issue is to practice active listening.

Active listening focuses on the person who isspeaking to you and shows that you understandwhat is being said. It almost always includes non-verbal cues, such as nodding, smiling, and otherexpressive reactions, as well as verbal cues andresponses, including questions.

Active listeners process what someone elsesays, rephrase it in their own words, and replay it

LEARNING TO COMMUNICATE

Communication is so important inbusiness that even great managers andleaders are coached at it.

Executive coaches are like personaltrainers for business people. In addi-tion to providing career and personalguidance, executive coaches oftenteach senior managers motivationalcommunication skills. They coachexecutives in how to make better pre-sentations, how to listen, how to avoidsending negative messages, how todifferentiate between assertive andaggressive behavior, how to encouragecooperation, and more.

Ask if your company makes executivecoaching programs available tomanagers or supervisors.

The BIG Picture


36

so the speaker can validate that the message wasunderstood. It is a skill that requires some levelof detachment, because your role as an active lis-tener is to demonstrate understanding, whetheror not you agree with what the speaker is saying.

Active listening can be particularly useful inany kind of verbal disagreement. It forces thelistener to concentrate on what the other per-son is saying and to interpret it accurately. As aresult, active listening can reduce confl ict andavoid contradictory statements. When both

RECOGNITION BUILDS LOYALTY

Recent studies from the BusinessResearch Lab, a national marketresearch firm, point to a strongassociation between how long peopleintend to stay at a company and therecognition they receive there forgood work. Notably, there is a strongcorrelation between the statement“I feel I am contributing to thiscompany’s mission” and the statement“This company gives enoughrecognition for work that’s well done.”So if there are staff members youparticularly value, be sure to give themthe praise and rewards they deserve.SOURCE: Business Research Lab,www.busreslab.com (2005).

THE BOTTOM LINE


37

parties in an argument are actively listening toone another, they may be better able to reach aresolution.

CASE FILEMOTIVATING WITH PASSION

One trait that makes some businessleaders more motivational than othersis their passion. In his book, Pour YourHeart into It, Howard Schultz, founderof Starbucks, speaks of his “passionatecommitment to everything.”

He writes, “When you’re aroundpeople who share a collective passionaround a common purpose, there’s notelling what you can do.” Not surpris-ingly, passionate company leadersmotivate their employees to achievegreat things.

Lou Gerstner did so when heturned around the fortunes of IBM,motivating his employees to worktogether to return the company toprofitability. Steve Jobs also did sowhen he reinvented Apple, motivatinghis employees to build the consumerelectronics company that launchedthe iPod.SOURCE: 10 Simple Secrets of the World’s GreatestBusiness Communicators by Carmine Gallo (Source-Books, 2005).


38

THE SECRETS OF MOTIVATING

Although what motivates people variesfrom one person to the next, certainbehaviors affect everyone.

�� Do get to know each employee’s likes,dislikes, and talents and use thisinformation to help find the person’smotivators.

�� Do offer public recognition for indi-viduals who have performed at a highlevel or demonstrated outstandingdedication or loyalty.

�� Don’t view employees as the prob-lem—get them involved in your orga-nization’s challenges and goals, sothat they become the solution.

�� Do hire the right people—those whofit your organizational culture, whowant to work for you, and who aremotivated to do a good job.

�� Do find ways to maintain and rein-force the enthusiasm of your employ-ees so it is sustained over time.

�� Do challenge individuals to do theirbest at all times.

�� Don’t criticize someone’s personality,lifestyle, or outside-of-work interests.

Dos & Don’ts


39

�� Don’t become argumentative, emo-tional, or arrogant when criticizingsomeone, and never verbally assaultan employee.

�� Do encourage individuals to give youhonest input, then acknowledge itand act on it.

�� Don’t be so convinced that yourway is the right way that you donot encourage and accept honestfeedback and ideas from individualemployees.

�� Don’t exhibit favoritism for oneemployee over another.

�� Don’t be indirect or vague whenaddressing a difficult issue with anemployee.

�� Do maintain eye contact and deliver acritical message in a way that’s clear,direct, unemotional, and objective.

�� Do offer constructive criticism assoon as a problem occurs—but do itin private.

�� Do give the person being criticized achance to tell his or her side of thestory.


40

When you are speaking with employees,remember that your words carry a lot of weight.As a manager, you hold a certain power overemployees and that can immediately establish an“us versus them” perception. It is therefore veryimportant to be nonconfrontational, nonemo-tional, and objective. It doesn’t hurt to have asense of humor, either (although you should notmake light of serious matters).

When praising someone, use the person’s nameand the word “you” frequently. When criticizingsomeone’s performance or behavior, it is oftenbest to change “you” messages to “I” messagesto avoid the perception that you are verballyattacking the individual. For example, say, “Ihave a problem with not getting that report ontime” instead of, “You were late with that report.”Always focus on the specifi c behavior itself, noton the individual.

Body LanguageBody language, or nonverbal communication, canbe a powerful motivational tool. To project sin-cerity, concern, and honesty, maintain eye contactwhen you speak with someone. When you speakto a group, scan the faces frequently and makebrief eye contact with several individuals.

Smile when you speak. If you are comfortablemaking hand gestures, do so with your arms ina relaxed position and your palms open. Pointor make a fi st only when emphasizing some-thing important.

In a one-on-one conversation, you can prac-tice nonconfrontational body language, as well


41

as watch for signals from employees. Leaningforward when seated communicates that you areinterested or accepting of what is being said. Lean-ing back may express resistance or disinterest.Generally, crossed arms, hands planted fi rmly ona table, a furrowed brow, or lack of eye contact

CASE FILEPERSONALIZING EMPLOYEE MOTIVATIONRoy Pelaez manages over 400 peoplewho clean airplanes for service providerAramark. He needed to improve moraleand reduce theft among his workforce,which is largely made up of immi-grants, so he decided to get involvedwith his employees on a personal level.

Pelaez found government-subsidizedbabysitters to help workers who weresingle mothers; secured the servicesof a teacher to tutor his employeesin English; and arranged for someonefrom the IRS to give free tax advice.

He also offered good worker incen-tives, such as a day off with pay to anyemployee with six months of perfectattendance and to anyone who turnedin a wallet or pocketbook found on anairplane.

The results were stunning: a 12 per-cent reduction in turnover, the returnof 250 wallets, and an increase incompany revenue.SOURCE: “How to Lead Now” by John A. Byrne, FastCompany (August 2003).


42

convey tenseness or discomfort. These posturesand movements in an employee suggest a lack ofagreement with what you are saying.

Being aware of your own nonverbal signals,and reading the body language of others, canhelp you be a more effective motivator.

Sending Your Message in WritingThe power of the written word can be yourfriend or your enemy when it comes to motivat-ing employees. A big problem in business todayis e-mail. Managers and employees have becomeso informal and blunt in e-mail communicationsthat an e-mail can often be misinterpreted orincite a negative reaction.

IT’S THE LITTLE THINGSComplex recognition and rewardsprograms are not the only way tomotivate your staff. Sometimes, it isthe little things that count.

Recognizing an individual can beas simple as taking the time to stopby the person’s office to say thankyou, leaving a handwritten note onthe person’s chair, or giving theperson a gift card as a token of yourappreciation.

Great leaders make a habit ofthinking of special, personal ways torecognize and motivate individuals.

Outside the Box


43

Do not write e-mails to employees in hasteor anger. If you need to, write something downon paper, just to work off steam, then edit itand rewrite it as an e-mail. Never use capitalletters in an e-mail—unless you want to seemto be SHOUTING.

Communicating in writing can work to youradvantage, however, if you take the time to senda handwritten note or card complimenting orthanking an employee. This is a common andvery effective technique that a number of busi-ness leaders use. It is perceived by the recipient

“In motivating people,you’ve got to engagetheir minds and theirhearts. It is goodbusiness to have anemployee feel part ofthe entire effort. . . . Imotivate people, I hope,by example.”

—Rupert Murdoch,CEO of News Corporation


44

as meaningful, both because you took the timeto do it and because it is a very personal formof recognition.

MOTIVATING INDIVIDUALSMotivating individuals starts with four small yetimportant concepts.

First, really listen to an individual employee.Never patronize him or her. Instead, encouragethe person’s input and act on it.

Second, understand an individual’s uniquemotivators. They will be different for everyone.Once you understand what they are, tailor yourinteractions with the individual accordingly.

PUZZLING RESULTS

In a group of adults who had workedon ten identical puzzles, all performedequally well. Half of them, however,were told that they had done a goodjob, while the other half were toldthat they had done badly. What werethe actual results of a second roundof testing with ten new puzzles? Thegroup of people who believed they hadbeen successful the first time reallydid score better—and the secondgroup actually scored worse.SOURCE: In Search of Excellence by Tom Peters andRobert H. Waterman, Jr. (HarperCollins, 1982).

Behind the Numbers


45

Third, give your people responsibility anddecision-making power so that they can be effec-tive at their jobs. Trust that their own motivationwill keep them going, and give them the supportthey need to succeed.

Finally, provide recognition and rewards whenappropriate. Even more important, offer indi-vidual feedback on a regular basis.

Learn to ListenA remarkable number of managers do not reallylisten to their employees. Most individuals knowtheir job. A competent person can tell a managerhow to be more effi cient. Managers who inviteemployee input and take it seriously will fi nd theirworkers to be more positive and more motivated.

Smart managers recognize an individual’s pas-sion and take advantage of it. For example, if anemployee likes the detail of how things work, themanager could offer him an opportunity to ana-lyze and improve the department’s operations.

Give ResponsibilityManagers who do not delegate effectively andwho micromanage their employees’ work areseldom pleased with the results. One of the bestways to motivate individuals is to give them fullresponsibility for getting their job done. A man-ager should provide direction and guidance, butnot step-by-step instructions.

Give Feedback the Right WayEmployees welcome positive feedback, butsometimes managers can be stingy with it.


46

They simply don’t take time to tell employeeswhen they are doing a good job—and in sodoing they miss the opportunity to motivate.The fact is that career growth keeps employeesmotivated, and responding to your input astheir manager is one of the most importantavenues of growth. The key is to provide feed-back in the right spirit.

Positive feedback is motivational both for thereceiver and the onlookers. It’s important todeliver praise and positive feedback in public.That way, you demonstrate that you, as a man-ager, recognize and acknowledge effort and hardwork. At the same time, praise highlights valuesyou would like to encourage.

Giving negative feedback is another opportu-nity to motivate, although negative situations arealways challenging. If an employee’s behavior has

“None of us is really asgood as he or she wouldlike to think, but rubbingour noses daily in thatreality doesn’t do us a bitof good.”

—Tom Peters andRobert H. Waterman, Jr.,

authors of In Search of Excellence


47

provoked you, or you are angry or irritated (asyou may well be), it is hard to remain impassiveand matter-of-fact.

But remember that critical comments phrasedin a negative way often put employees on thedefensive and can cause them to tune out every-thing else you are saying, even if it’s positive. Thebest course is to strive for dialogue.

Meet with the individual one-on-one as soon aspossible after the problem has come to your atten-tion. Adopt a respectful attitude—try to assumethe best about the individual. Don’t berate theemployee and don’t show your personal feelingslest you provoke an emotional response.

Stay focused on the goal of the conversation,which is to stop unwanted behaviors. Ask forexplanations and their point of view, and makesure to practice active listening. Show empathy.Instead of dwelling on failure and undesirablebehavior, concentrate on accepted standards.

Communicate what you would like to seeinstead, giving specifi c examples of positive con-duct. Remind the person of performance goalsyou’ve previously worked out together. Then,approaching the negative situation as you wouldany problem, take a collaborative approach tosolving it. Agree jointly on specifi c new goals thatare measurable, action-oriented, realistic, andtime-limited.

Set milestones—dates on which you will checkin to see how work toward the goals is going—and follow up. Throughout the conversation,remember that constructive comments tend tospark action, and be as positive as you can.


48

The focused attention from you as manageris motivational, as is working toward—andachieving—the right kind of goals. The best-casescenario is that you turn a poorly performingemployee into a star.

MOTIVATING TEAMSIn the classic Wisdom of Teams, Jon R. Katzen-bach and Douglas K. Smith emphasize that it isa sense of common purpose directed at a clearcompelling performance challenge that separates“extra-ordinary,” or high-performance, teams

DON’T STAND IN THE WAY

If a team isn’t functioning as smoothlyas it should, the first thing to askyourself is whether you are doinganything that stands in the way of theteam’s effectiveness.

Sometimes a manager unwittinglyinterferes with a team’s progress bybeing overcontrolling. Even wheninspired by a desire to help the teamsucceed, micromanagement cancome across as a lack of respect andcan suppress the team’s creativity.Individual participants can becomefearful of making a mistake. Make sureyou are sensitive to your team’s needfor autonomy.

Plan B


49

from committees, councils, task forces, and othersmall work groups.

The teams highlighted by Katzenbach andSmith are energized because of their commitmentto a goal that has been jointly created—and, inpursuit of that goal, by their accountability toeach other even more than to management. Theindividuals on high-performing teams reallycare about their colleagues and about achievingtheir goals. Each team member derives individualsatisfaction from membership on the team andfeels that his or her role is essential to the team’s

success. Individuals’ self-esteem and pride becomeclosely connected to the fulfi llment of the team’smission. The sense of common purpose as wellas the satisfaction of successes along the waymotivate team members to further invest theirtime and creativity.

“The combative or angryor critical, demeaningconfronter does not solveproblems but insteaddrives them more deeplyinto hiding.”

—Dr. Henry Cloud,author of Integrity


50

TIPS ON MOTIVATING TEAMS

Fostering a spirit of collaboration andteamwork keeps team motivation high.

�� Do define the team’s mission andresponsibilities.

�� Do communicate a common senseof purpose.

�� Do explain how the team’s worksupports your organization.

�� Do model partnership and team-work by being open and honest.

�� Do make team assignments to takeadvantage of individual strengths.

�� Don’t assign a team member to arole if you are unsure it will suithim or her.

�� Don’t withhold information thatcould help the team accomplish itsmission.

�� Don’t pit one team member againstanother.

�� Do facilitate discussion and medi-ate conflict to keep discussionsconstructive.

Dos & Don’ts


51

Moreover, the team’s enthusiasm is infectious:The productivity and positive results invigo-rates people outside the group as well as thoseon the team.

The single most important thing you can do tocreate this high level of energy and motivation isto outline clear performance requirements—forinstance, to get a certain type of new product tomarket within a stated time period. Make theperformance requirements specifi c to the team’sgoal, yet loose enough to allow team members tointernalize and personalize them, and for synergyto work its magic.

Foster CooperationYou can contribute to a team’s success in sev-eral ways. First, as a manager, you must takecare in choosing members with relevant andcomplementary abilities. Second, you must playa key role at the outset in motivating each andevery individual to want to be part of the team.One way to accomplish this is by demonstrat-ing that functioning as part of the team willyield a personal benefi t, supplying the answerto the usually unspoken question, “What’s in itfor me?”

Third, as an equal member of the team, you willbring your own unique skill set. That may includea deep knowledge of a certain process, or abilitiesthat enable you to encourage conversation amonggroup members, or an understanding of eachteam member’s individual strengths and how todraw them out. You can also model strong collab-orative behavior yourself.


52

Stimulate CommunicationThe best teams never lose sight of their goals andconsistently revisit discussions of the group’spurpose, each time viewing it in terms of newinformation they have received while movingforward. You can help keep the goals and pur-pose top of mind. In addition, you can keep the

CASE FILESHARING CHORESEze Castle Software CEO SeanMcLaughlin wanted employees to workas a team to keep a neater workplace.He assigned tasks on a rotating basis.McLaughlin himself did kitchencleanup the first week.

The tasks took each employeeonly about 15 minutes each day.When everyone shared the effort, theworkplace immediately became tidier.

McLaughlin also took a portion ofthe money he saved not having to hireadministrative staff and put it into anemployee fund.

By giving his team a shared purposeand letting them share in the benefitsto the company, McLaughlin was ableto get his group motivated even as theyadded this new responsibility to theirday-to-day tasks.SOURCE: “Managing One-to-One” by LeighBuchanan, Inc. Magazine (October 2001).


53

ideas fl owing. Practice active listening as yourcolleagues speak their opinions. Be honest andopen yourself, and encourage frank dialogue and

open sharing of information—remember that inmany companies, people are conditioned to keepstrong opinions to themselves. Often, everydayconversations in the workplace are focused onlooking good to the higher-ups and not rockingthe boat. That may mean avoiding confl icts andideas that might appear edgy or harebrained.

In the team setting, you want to encourageideas of all kinds. In addition, you should wel-come confl icts of opinion, although you shouldbe ready to facilitate a constructive discussion

“The people who aredoing the work are themoving force behind theMacintosh. My job is tocreate a space for them,to clear out the rest ofthe organization andkeep it at bay.”

Steve Jobs,cofounder and CEO of Apple Computer


54

that will lead the group to a consensus based onyour common goals.

Praise individual team members for their col-laboration, for their commitment, and for thecontributions made by their independent thinking.

It’s All About UsT-shirts, coffee mugs, and other team logo wearremind team members of the goals and purpose

“WHAT’S IN IT FOR ME?”

Motivating teams begins and ends withmotivating individuals. Teams are mosteffective and motivation is highestwhen:

• Each individual wants to be a partof the team.

• Each team member feels that beinga part of the team will be person-ally rewarding.

• Each individual member takes pridein fullfilling the team’s mission.

• Each team member feels not onlyaccountable to himself or herselffor completing an assigned task,but also has a sense of account-ability to the rest of the group.



55

they share and why it all matters. The strongpersonal feelings that develop as a result of shar-ing and resolving confl icts and working togetherto accomplish important ends is motivatingin and of itself. Group social events, sportingevents, and group activities are more meaningfulas a result.

When you use devices like these as well as yourown skills to foster collaboration, communica-tion, and commitment in an atmosphere ofcaring and constructive confl ict, you will soonsee, in your team, the truth in the old saying thatthe whole is greater than the sum of the parts.

�Essential Skill IIDealing withDe-Motivation

“People often say thatmotivation doesn’tlast. Well, neither doesbathing —that’s why werecommend it daily.”

—Zig Ziglar,motivational speaker

�M

anagers need tobe aware of bothexternal andinternal conditions

that can contribute to the loss ofmotivation. Out of the controlof most managers are externalconditions, such as personal andfamily issues, that spill over intoan employee’s work life.


58

Financial pressures, health issues, relationshipproblems, and other personal challenges candistract an employee or reduce his involvementwith work—and his motivation.

Within the workplace, any number of issuesmight impair motivation. Bad news associatedwith the reputation or fi nancial condition of theemployer could have an impact, as could uncer-tainty due to a merger or restructuring of theemployee’s organization, a reduction of pensionor other benefi ts, or an increased workload with-out additional compensation. Disagreementswith coworkers or the presence of less competentcoworkers who are known to be paid more canaffect morale. So can postponed performancereviews and a poor attitude toward employees onthe part of management.

As a manager, you must do your best to cre-ate a work environment that limits the numberof de-motivating factors. You can lend an ear toyour employees and, by being fl exible and under-standing, help them through diffi cult times.

You can try to defl ect organizational issues thatdamage motivation and morale, or at least explainthem as best you can. Strong working relationshipswith employees in which you both guide them asindividuals and work with them as part of teamsalso reduce the impact of negative situations.

HIRING TO REDUCE DE-MOTIVATIONPharmaceuticals entrepreneur Ewing MarionKauffman once observed that people who aremotivated will motivate others. Because it’sdiffi cult to create that level of motivation, it’s

D E A L I N G W I T H D E - M O T I VAT I O N

59

imperative to hire people with the capacityto be motivated about the business. If youstaff your organization with positive, enthu-siastic self-starters, you will have naturallymotivated employees.

Employers who attract such employees tendto have managers who themselves are positive,enthusiastic, and happy to be the company’semployee. Good working conditions, excellentbenefi ts, and a reputation for integrity are moti-vational, as is the message that the organization

WHY DO EMPLOYEES LOSE MOTIVATION?

Both external and internal conditionsaffect employees and cause them tolose their drive.

Common factors outside the workplace• Financial pressures

• Health issues

• Relationship problems

Common factors on the job• Employer's financial problems

• A merger

• A reorganization

• Increased workload

• Disagreements with coworkers



60

HOW TO KEEP MOTIVATION HIGHThough you can’t control every issuethat affects your staff, you canminimize the impact of those thatcontribute to loss of motivation.

�� Do form strong workingrelationships with your staff.

�� Do create a work culture that ispositive, rewarding, and fun.

�� Do encourage employees to cometo you with their problems.

�� Do make sure your managers arecaring and compassionate.

�� Don’t attribute all loss ofmotivation to workplace issues—beaware of personal issues.

�� Do be on the alert for potentiallymotivation-killing workingconditions, such as long hours andconflict with coworkers.

�� Do consider a job candidate’spersonality and fit with yourorganization before hiring.

�� Don’t make a hiring decisionwithout having others in yourorganization interview thecandidates.

Dos & Don’ts


61

is successful, takes good care of its employees,and is a great place to work.

Lively recruitment ads can help attract the rightpeople. Enthusiastic human resources recruitershelp draw similar individuals at job fairs. Bonusprograms encourage current employees to bringstrong potential employees on board. The wholehiring process should focus on bringing you inthe right type of worker.

QualificationsWhen you make a hiring decision, it can have astrong impact on the morale of the rest of yourstaff. Make sure that every new hire is qualifi edfor the position. Hiring someone who is under-or over-qualifi ed for a job is sure to affectmotivation—the motivation of others on yourstaff, and eventually that of the new employeewho will either lack the skills and experiencerequired to do the job, or, alternatively, beunderchallenged.

Study the individual’s resume closely to besure it matches the requirements of the posi-tion. Consider not just the resume, but thecover letter. One that exudes enthusiasm for the

“People are not your mostimportant asset. Theright people are.”

—Jim Collins


62

position and the company is a good indicator ofhigh motivation.

References and InterviewsWhen checking references, be sure to ask previ-ous employers about an individual’s motivation.Try to get input not only about strengths orweaknesses, but also about the individual’sattitude and personality. Was this person amotivated self-starter who took the initiative,or did he or she always need to be told what todo? Did this person do more than was expected,or simply satisfy the minimum requirements?Is this someone coworkers respected and withwhom they got along? Was he or she cooperative,engaged, and dependable?

In your interview, probe to fi nd out whatmotivated each candidate in the choices they’ve

“All the clever strategiesand advancedtechnologies in the worldare nowhere near aseffective without greatpeople to put them towork.”

—Jack Welch,former CEO of General Electric

and author of Winning


63

made during their lives. As you ask questionsabout their decisions, their thinking style willcome into sharper focus. Did the person fi nd themotivation to take actions from within himself?Did she rely upon others to prompt an action?For each accomplishment on his resume, wasthe initiative to get the project or process startedhis own? Rather than formulating hypotheti-cal questions about what a candidate might dounder a given set of circumstances, use your can-didate’s resume to give you ideas for questionsthat elicit information about what he or she hasdone in the past—because research has shownthat past behaviors are the best predictors of howpeople will behave in the future.

MISSION AND MOTIVATIONOnce manufacturing-focused, Americanbusiness today is increasingly service-and information-oriented. For manycompanies, intellectual capital offers acompetitive advantage.

This is why your company’s greatestresource is your people. People wantto be part of an organization with ameaningful mission—an organizationwith integrity. People are highlymotivated when they work for anorganization that demonstrates by itsactions that it believes in the value ofits employees.

THE BOTTOM LINE


64

Formulate your questions carefully, also antici-pating follow-up questions you might want to ask.Interview your strongest candidates personally,but also have a few others speak to them individu-ally as well—asking the same questions that youhave posed about prior experience, job qualifi ca-tions, and management experience so that youcan all compare notes. Avoid group interviews,which make many candidates uncomfortable. Endby inviting the interviewee to ask you questions.

HIRING BY INSTINCT

It’s a given that you should care-fully consider each job candidate’squalifications for a position. However,your gut feeling about the candidate isjust as important, so don’t dismiss it.

You need to feel comfortable withthe candidate as a person. Envisionthis individual in your organization:Can you see him or her interactingwell with coworkers and superiors?Can you see the candidate acceptingthe company culture? Do you feel theindividual’s style is a good fit?

On these key points, don’t make adecision based solely on your reason.Trust your instincts as well.

The BIG Picture


65

Knowledgeable questions, revealing that time hasbeen spent fi nding out about your institution,demonstrate motivation as well.

Watch the candidate for signs of interestduring the interview—an enthusiastic speechpattern, animated presentation, eye contact,smiling, nodding to display understanding, andactive listening, with arms apart, gesturing withopen palms, and a forward leaning posture.

After the interview, write down your impres-sions of the candidate right away—your gutfeelings as well as your thoughts. Bring fi nalistsback for second interviews to gather additionalinformation and further assess their qualifi ca-tions and motivational level.

THE RIGHT STAFF

Growth follows when you start with theright people, ask the right questions,and stimulate them to produce.

�� Do make sure that your recruitmentads are phrased to appeal tostrongly motivated individuals.

�� Do pick your most motivatedemployees to recruit at job fairs.

�� Do encourage current employeesto refer potential employees via abonus program.

Dos & Don’ts


66

WHAT’S DE-MOTIVATING YOUR STAFF?Before you can fi gure out why the motivation of amember of your staff is falling off, you have to beable to spot the signs. He or she may be missingwork more often. He may seem to lack enthusi-asm for everyday work or even new projects andmay appear bored, distracted, or preoccupied. Shemay be uncharacteristically inattentive to detailsor erratic, losing her temper or having confl icts

CASE FILEUNORTHODOX MOTIVATION

Recruiter Jon Westberg of LanderInternational realized that he wasn’tplacing what he considered a sufficientnumber of candidates. The problem: Hethought he might be devoting too muchtime to his outside interest in art.

CEO Richard Tuck, to whom he tookhis problem, startled Westberg bysuggesting that he spend more time onhis art and less time on the job. Tuck’srecommendation was based on hisfeeling that, if Westberg was fulfillinghis passion, he would become moreenergized and do a better job. Tuckhas built an Inc. 500 company withjust such unorthodox thinking.SOURCE: “The Right Staff” by Samuel Fromartz,Inc. Magazine (October 1998).


67

with coworkers. Some employees who are los-ing their motivation are sloppy and disorganizedabout their work area. Body language can beanother clue—furrowed brows, sad faces, vacanteyes, clenched fi sts, or audible sighs.

Approaching the EmployeeIf you spot signs of de-motivation in one ofyour employees, don’t let the situation languish;deal with it as soon as you notice it. Approachthe person in a nonthreatening way. Have a

WARNING SIGNALS

Watch for these danger signs thatmotivation may be waning:

• Increased absenteeism

• Inattention to detail

• Apparent boredom

• General lack of enthusiasm

• Erratic behavior

• Distraction, apparent preoccupation

• Temper flare-ups

• Conflicts with coworkers

• Messy work area

• Negative body language

Red Flags �


68

conversation in his or her own work area, if itoffers privacy, or ask to speak in your offi ce.

Be calm and unemotional. Begin by sayingthat you have noticed certain specifi c behaviorsand mention what they are. Ask the employeewhat might be causing these behaviors. Ask if

THE FEAR FACTOR

Some managers still use fear to controlemployees. They may threaten to keepan employee after hours. They mayannounce an intention to dock pay.They may talk about withholding anannual raise or threaten to submit apoor performance review.

In the short term, this use of fear asa motivator may seem effective, andemployees may toe the line. In thelong term, however, fear usually turnsto resentment—and a lack of respectfor the manager.

Never does fear inspire the kindof effort that an employee who ismotivated from within can put forth.Solid working relationships sparkinitiative, creativity, and the positiveattitude that it takes to get thingsdone. Over the long haul, fear isnever effective.

The BIG Picture


69

there are issues or barriers that are getting inthe way of the person performing effectively onthe job. Ask what you can do to help turn thesituation around.

Encourage the person to talk to you. Be pre-pared to deal with anger or frustration. Someindividuals have trouble describing what’swrong. Listen actively, and don’t be judgmental.

Try to identify the issues that are causing theloss of motivation. Determine whether you

USE HUMOR

It has been proven time and again thathumor helps maintain motivation andmorale in the workplace.

A good sense of humor can diffuseanxiety and put people at ease.Friendly joking can lighten up a tensemoment. (Of course, make sure it isappropriate.) Poking fun at yourself canmake you seem more approachable.

In some organizations, humor playsan even more important role. Employeeskits and outside improvisationaltroupes keep things light. For instance,Southwest Airlines founder HerbKelleher, known for his self-deprecatinghumor, was famous among his staff forhis Halloween costumes.

Outside the Box


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can resolve them. Offer to help the employeein whatever way seems most appropriate. If theissue is personal, you might offer the option of amore fl exible work schedule.

HOW TO DEAL WITH MOTIVATION ISSUESIf you handle the motivation issuepromptly, you may be able to stallthe slide or even turn it around—andsave yourself from losing a valuableemployee.

�� Do stay alert for signs of decliningmotivation.

�� Don’t wait to address an employeewhen you suspect a motivationproblem.

�� Do encourage employees to speakfreely with you about problems.

�� Do respond with compassion andobjectivity.

�� Don’t be judgmental.

�� Do try to offer a flexible workschedule or other reduction inwork place pressure if the issue ispersonal.

�� Do check in with the employeeperiodically if the problem can’t beimmediately resolved.

Dos & Don’ts


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If the issue is work-related, you might be ableto propose a solution. If you cannot offer animmediate resolution, promise the employee thatyou will get back to him or her. Set a deadline fordoing so.

Following UpAgree to follow up with the employee on the issue.Many times in a busy workplace, managers don’ttake the time to do so. Yet this seemingly simpleaction is more important than you might imagine.The consistent, sincere interest of a manager canmake a big difference in an employee’s attitude.

Check in with the employee periodically.Do everything you can to fi nd a solution tothe problem. If the issue ultimately cannot beresolved, you can honestly tell the person thatyou did all that you could. Then you should con-tinue to be supportive and helpful.

“Management is nothingmore than motivatingother people.”

—Lee Iacocca,former CEO of Chrysler


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INSPIRED MOTIVATION

Keeping motivation high amongstaff members is a matter ofinstitutionalizing in your group thesmart practices that have worked forgood managers for years.

�� Do lead your team in celebratingevery success, large and small.

�� Don’t ignore organizationalproblems—deal with them openlyand honestly.

�� Do encourage employees to loosenup, have fun, and laugh.

�� Do maintain an open door policy.

�� Don’t use fear in an attemptto improve an employee’sperformance.

�� Don’t promote intense competitionamong members of a work team.

�� Do try to resolve a conflict betweentwo coworkers by helping them tofind a common ground.

�� Don’t tell employees you canresolve an issue affecting theirmorale unless you are certain thatyou have the ability to do so.

Dos & Don’ts


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Reaching A ResolutionOnce you have become aware of the issues thatmay be affecting an employee’s motivation forthe worse, it is important to try to resolve them.

Many employees are looking for someonewho will listen and empathize with them. It isimportant to let employees “vent” to you with-out judging or criticizing them. This requires acertain level of detachment on your part. Evenif you do not agree with the employee’s perspec-tive, you can do a lot of good just by listening.

When you move from listening to fi nding a reso-lution, you need to understand what role you canplay. If the problem is of a personal nature, you can

BEHAVIOR TELLS A STORY

Unresolved motivational issues cannegatively affect employees’ behavior.If you are alert for these warning signs,you won’t be taken unaware:

• A change in attitude fromcooperative to negative

• Minimal effort on the part of anemployee who once did more thanwas required

• Silence and isolation from anemployee who once interactedregularly with coworkers

Red Flags �


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go only so far. Your involvement must be limited toadjusting the employee’s job responsibilities.

With a job-related issue, you must determinewhether the issue is within your authority. Amotivational diffi culty that goes beyond yourarea of responsibility will be harder to resolve.

In this case, you will have to decide whether theissue also affects more than one employee andwhether it is something you can legitimately bringup to senior management. If you know the issuewill be diffi cult or impossible to settle, you shouldseek guidance from your boss. Then you will beable to tell the employee truthfully that you havemade every effort to take care of the problem.

If the issue is within your limits of authority,determine whether anyone else is involved. Ifthe issue involves a confl ict with a coworker,the resolution you facilitate must involve

“After you start doing theright thing, that’s whenthe motivation comesand makes it easy foryou to keep on doing it.”

—John C. Maxwell,author of The 21 Irrefutable Laws of Leadership


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both parties. Try to get the two individuals toappreciate each other’s roles and fi nd com-mon ground. If they seem to be unable to workwith one another, get them to concentrate ongroup goals rather than their own issues. In aneffort to move their focus away from the dis-pute, for instance, you might give them bothassignments that involve helping other teammembers.

If the issue is related to the employee alone,determine what you can do personally. If theproblem involves the job responsibilities of the

SELF-RESOLUTION

Giving an employee the responsibilityto handle a problem that is botheringhim can be motivational in itself.Self-resolution can be especiallyeffective with employees who lack self-confidence.

Before you make this choice, identifythe issue at fault, and determine whatinformation or resources might beneeded to resolve the difficulty. Offerto collaborate with the employee—butgive the individual as much freedomas you can to work through the issue.Provide guidance and support, holdingperiodic progress meetings with theemployee until the issue is resolved.

Plan B


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individual, you may solve it by modifying orchanging job responsibilities. If the diffi cultyis job performance, reviews, or advancement,evaluate how you can ameliorate the situation.

CASE FILEA WORKPLACE FREE OF RULESA radical experiment called“Results-Only Work Environment”(ROWE) at electronics retailer BestBuy allows salaried employees todecide how, when, and where theywork to accomplish what they needto get done. In this program, firstimplemented in 2002, the onlymeasurement in evaluating employeesis whether or not they successfullycomplete their work and meet theagreed-upon objectives they establishwith their managers.

Sixty percent of Best Buy’s divisionalemployees have converted to ROWE.Employees report better familyrelationships, higher company loyalty,and greater enthusiasm for the job.Statistics show the productivity ofROWE workers is 35 percent higherthan that of employees not on theplan, and turnover is down more than3 percent.SOURCE: “Throwing Out the Rules of Work” by PatrickKiger, Workforce Management (October 7, 2006).


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If necessary, work with your superior or yourhuman resources department.

Sometimes, working collaboratively with theemployee to come up with an acceptable resolu-tion is the appropriate course. Empowering theemployee to play a direct role in resolving issues initself may transform the unmotivated employee.

Ultimately, the time and effort you put intoidentifying and resolving the issues behind thefalling motivation will pay off.

By encouraging employees to come to you aboutsuch issues, you will learn more about them—andabout your organization. You will show yourself tobe a caring manager, someone they can feel com-fortable speaking to in confi dence.

REVERSING DECLINING MOTIVATIONResolving motivational issues will havea dramatic impact on morale. Variousapproaches can be successful:

• Some employees simply needsomeone to listen and empathize.

• Modifying or changing theindividual’s job responsibilities willsolve some problems.

• To resolve conflicts among coworkers,get both parties to appreciate eachother’s roles and empower them tobrainstorm their own solution.



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As a manager who knows how to turn anemployee’s attitude from negative to positive,you will potentially have a more satisfi ed, moremotivated staff—and your organization will bebetter off as a result.

DIFFICULT SITUATIONSWhen an employee’s motivation wanes, you arebound to notice behavioral and performanceproblems. You will have to address the cause ofthe lack of motivation—and deal with the impact.

Lack of ConfidenceAn employee who is in the throes of a motiva-tional crisis may well lack confi dence or be afraidto make mistakes. When you discuss the problem,make an effort to be supportive and reassuring.Reiterate your faith in her abilities and your assur-ance that the setback is only temporary. Encouragehim to keep trying and not to fear failure.

“At fi rst, you rarelysucceed. Hence, youneed to fail, fail again.My summa mantra goeslike this: No big failures,no big successes.”

—Tom Peters


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Lack of CooperationIf an employee is uncooperative with you orwith coworkers, call him on the behavior imme-diately. Do this in private and give specifi cexamples in a way that’s objective and calm.

TURNING BEHAVIOR AROUND

Negative behavior and a lack ofmotivation are not necessarilypermanent. Handled correctly, theycan be reversed and the employee canbe transformed into one of your starperformers.

�� Do use positive feedback andpraise to bolster an employee’sfaltering confidence.

�� Don’t let the damaging effects ofan employee’s negativity on a workgroup go unaddressed.

�� Do remind an unmotivatedemployee that lack of cooperationwill prevent him from beingsuccessful.

�� Don’t neglect to reinforce positivebehavior and strong performance.

�� Do work with an employee toset objectives and timelines forcorrecting problems.

Dos & Don’ts


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Explain that the refusal to be a team player hin-ders your group’s performance and success. Askthe employee for his cooperation while the issueis being resolved.

NegativityThe negative mood of an employee with moti-vation issues can quickly spread through yourstaff. This affects the work environment andcan damage group morale. If the employee is

negative, point out the damage that the attitudecould have on the work group. Encourage theindividual to stay positive—or at least to remainprofessional—while you work on a resolution.

Disciplinary ActionIf you have made a genuine effort to address anemployee’s unacceptable behavior or substan-dard performance during informal meetings and

“The only way to deliverto the people who areachieving is not toburden them with thepeople who are notachieving.”

—Jim Collins


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have not seen any change, you must take strongeraction. When there has been misconduct, neg-ligence, insubordination, unwillingness toperform job requirements, or similar just cause,issue a formal reprimand.

The fi rst step in a progressive discipline pro-cess that could ultimately lead to termination isan oral reprimand. This is simply a discussionbetween you and an employee in which youdefi ne a specifi c problem and call for an actionto correct it. Keep a record of the oral reprimand.

PROGRESSIVE DISCIPLINE

Take disciplinary action if you donot see any change in an employee’sunacceptable behavior.

• Misconduct, negligence, and otherjust cause warrant a reprimand.

• Oral reprimands, which are givenduring a discussion, define theproblem and call for a specificcorrective action.

• Written reprimands restate theproblem and the required actionand formally put an employee onnotice.

• Termination follows when the use ofreprimands doesn’t work.



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If the undesirable behaviors continue to be aproblem, take the next step and issue a writtenreprimand. This formally puts the employee onnotice—and again documents the problem andcalls for the action you previously requestedorally. You should ask the employee to acknowl-edge the written reprimand by signing anddating a copy; fi le a copy with your company’shuman resources department. If the employeerefuses to sign the reprimand, make a writtennote on the document.

“It’s awful to fi re people.But if you have acandid organizationwith clear performanceexpectations and aperformance evaluationprocess . . . then peoplein the bottom 10 percentgenerally know who theyare. When you tell them,they usually leave beforeyou ask them to.”

—Jack Welch


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Reprimanding an employee doesn’t requireyou to be angry or upset. In fact, your demeanorshould stay calm, even if the employee becomesemotional. Remain fi rm yet fair as you explainthe reprimands. Make it clear that you will takeadditional disciplinary action if the problem isnot corrected.

If the reprimands fail to work, termination iswarranted. Good written documentation of pastunresolved problems is essential when you areready to terminate someone. Be sure you have anadequate and justifi ed reason. Be aware of yourcompany’s policy, and of any federal or state lawsrelating to termination.

Whatever the reason for the termination,deliver the news calmly and objectively. Whilethe meeting should be private, it may be appro-priate to have an HR representative present forsupport and as a witness.

An employee’s reaction can range fromdisbelief to anger to an outburst of tears. Becompassionate yet fi rm; make it clear that thedecision is fi nal. Preserving an employee’s dig-nity during a termination is the objective.

�Essential Skill IIIRewarding MotivatedEmployees

“There’s always themotivation of wantingto win. But a championneeds, in his attitude,a motivation above andbeyond winning.”

—Pat Riley,NBA basketball coach

�M

ost parents use recognition and rewards to encourage

their children to behave well. The concept of recognizing and rewarding employees is essentially the same, with some important differences.


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While the employer–employee relationship issomewhat parental, the employee works forpay. Pay and associated benefits rise as theemployee’s responsibility grows and job tenurelengthens. The competitive environment mayinfluence remuneration as an organizationstrives to keep good employees from going toa competitor.

Pay and benefi ts are the foundation of anorganization’s recognition and rewards program,

CASE FILETHE RIGHT REWARDSAt telephone headset manufacturerPlantronics, some 2,400 employeeshave continuous input into benefitsand rewards via satisfaction surveys.The surveys have led to changes inPlantronics’ training, retirement, andvision-care benefits.

S. Kenneth Kannappan, CEO ofPlantronics, encourages employeeinvolvement via both surveys andface-to-face encounters. He conductsmonthly town-hall meetings and holdsan annual management conferenceevery summer. Kannappan believesemployees’ lack of motivation is duein part to management’s failure tocommunicate.SOURCE: “In a Former Life” by Ilan Mochari, Inc.Magazine (June 2001).

R E WA R D I N G M O T I VAT E D E M P L O Y E E S

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but they form only the baseline. Most humanresources experts agree that an organization witha motivated workforce tends to be one in whichrecognition and rewards encompass more thanthese basics.

RECOGNITION VERSUS REWARDSThere is a distinction between “recognition”and “rewards.” Recognition of an employee’sefforts can come in the form of private wordsof thanks or public praise, via written notes orcertificates of appreciation, or in other non-material ways.

Rewards are a specifi c form of recognition.In most organizations, rewards are monetary,or at least material. Must recognition alwaysinclude material rewards to be motivational?This question is open to debate. Some researchhas shown that employees who receive praiseor attention from their managers feel moreappreciated and motivated than those whodo not, whether or not material rewards fol-low. Other studies suggest money remains thestrongest motivator.

Match Recognition to ObjectivesConsensus does seem to exist about the needto link recognition programs to organizationalpriorities. Tying acknowledgement of an indi-vidual’s achievement to specifi c objectives orperformance goals is more effective than general-ized recognition.

Involving employees in incentive programsmatters as well. The most motivated employees


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are found in organizations that offer rewards inwhich the employees themselves have expressedinterest, via opinion surveys, focus groups, orcompany votes. Such programs are far betterreceived than those in companies that assumethey know best what their employees want.

CASE FILEOPPORTUNITIES YIELD PROFITSWhen 29-year-old Tom Tiller wasappointed head of GE Appliances’kitchen-range plant in Louisville,Kentucky, the situation was not apretty one. No new products hadbeen introduced in years, and plantemployment had dropped from a highof 23,000 to 9,000. Tiller was facedwith the need to lay off another 400employees.

To counterbalance the negativeeffect of this action, he pulled 40people from all areas of the companyand put them on a bus to the AtlantaKitchen and Bath Show. There, theycarefully studied the competitionand came back to the plant with ascore of new ideas that yielded threenew product introductions within 18months and changed the bottom-lineloss to a $10 million profit.SOURCE: The Leadership Engine by Noel M. Tichy(HarperCollins, 1997).


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Finally, it is crucial to recognize not only thebig things, but also the little ones. Althoughexceptional performance deserves praise, onlytop performers are likely to receive it. In fact,an organization’s success is the product of themodest but consistent achievements of the entirestaff. These individuals merit recognition as well,if not on the same scale.

BARRIERS TO REWARDS SYSTEMSDespite the fact that employee productivityrefl ects motivation, which rises and falls withrecognition, organizations tend to throw up bar-riers that make it diffi cult to institutionalize thebest practices of the company’s most motiva-tional managers. Each particular type of barrieris wrong in a different way.

“The purpose of acompensation systemshould not be to get theright behaviors from thewrong people, but to getthe right people on thebus in the fi rst place,and to keep them there.”

—Jim Collins


90

Management by ExceptionIn high-stress environments, it is all too commonfor managers to claim that they only have timeto deal with crises. During a crunch, they reservetheir attention for employees who are having aproblem or underperforming, at which time theyswoop in and take decisive, corrective action.The basic attitude is, “If you haven’t heard fromme, it’s because you’re doing well.”

Unfortunately, by making problem situationstheir priority, they completely ignore employeeswho are doing good work. It is almost impossibleto build a rewards system in an organizationwhose managers do not take the time to recog-nize strong efforts.

“Throw Money at It”In an organization with a money-solves-every-thing mentality, managers are encouraged toresolve every motivational or performance issuewith money. Money, however, although a pow-erful motivator, cannot resolve fundamentaland deep-seated problems—when, say, employ-ees are always being asked to work overtimewithout compensation, or they clash with man-agers who are insensitive. In such situations,no added compensation can make up for theabsence of job satisfaction.

“It’s Not for Everyone”Instituting a rewards system for a few star per-formers, or for a single department, is usuallynot wise. Your success rests on the shouldersof everyone in your company—not just the


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star performers. It is better to have a rewardssystem that is broad and all-inclusive and thatuses levels of rewards to recognize levels ofachievement. Similarly, a rewards system that isoverly complex or has too many rules is doomedto failure. Preventing the system from becomingunnecessarily complicated is another good rea-son for employees to be directly involved in thecreation of the rewards system.

“We Do Enough for Our Employees”Some organizations think their employeesshould be grateful to have jobs and to be fairly

CASE FILETRUE PERSONALIZATIONMarc Albin, CEO of Albin EngineeringServices, Inc., believes his employeeswant to be recognized for differentthings, depending on their personalqualities, talents, and interests. Hebelieves each person is different andtherefore has different hot buttons.

At the end of orientation sessions,Albin e-mails each new employeeand asks how he or she likesto be rewarded. Albin says hisunconventional approach helps himunderstand what his employees “thinkof themselves and their abilities.”SOURCE: “Managing One-to-One” by LeighBuchanan, Inc. Magazine (October 2001).


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compensated for them. Additional incentivesabove and beyond pay and basic benefi ts areunnecessary, the thinking goes.

In such organizations, employee motivation isapt to be low and the turnover rate high. Invest-ing in even a modest rewards system can have amarked impact on productivity and employeeretention. In fact, in some business environ-ments, potential employees will look elsewhereif your level of benefi ts is not on a par with whatother companies in the fi eld are offering.

ESTABLISHING A REWARDS SYSTEM

The wrong approach to a rewardssystem can backfire. Paying attentionto these tips should help you motivateyour employees and recognize theirachievements:

� � Do create a rewards system that isclosely linked to your organization’spriorities.

� � Do recognize and reward the effortsof average employees as well as out-standing efforts by top performers.

� � Do ensure fairness and objectivity.

� � Do give impromptu rewards to keepemployees from regarding rewards asentitlements.

Dos & Don’ts


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SETTING UP A SYSTEMIn devising your rewards system, input fromyour employees is essential. Equally important,the system should be instituted consistentlythroughout the company. It should not onlyprovide a way to reward worthy recipients on aregular basis but also allow for spontaneous rec-ognitions. Surprising employees with occasionalunanticipated rewards keeps the system fresh. Asa result, employees will tend to view the rewardsless as an entitlement and more as a privilege.

� � Do allow employees to weigh in onthe rewards system through surveysand focus groups.

� � Don’t exclude anyone from yourrewards system by setting the bar toohigh.

� � Don’t assume that money is the onlymotivator that works.

� � Don’t implement a rewards systemwithout associating recognition withrewards.

� � Don’t create a rewards system that istoo rigid to be sustained over time.


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Whether impromptu or planned-for, allrewards must be distributed with fairness andobjectivity. Individuals, teams, departments,divisions, and entire organizations can be recog-nized, but for most employees, singling out onlya handful of organizational celebrities on a con-sistent basis tends to defeat the purpose of therewards program.

A rewards system can have formal or infor-mal levels of recognition as appropriate tospecific accomplishments. Recognition itselfcan play an important role in the system ifmanagers are taught effective ways to showappreciation. A face-to-face thank you,public praise, a handwritten note, or other

WHEN REWARDS DON’T WORK

Rewards generally do not workwhen management misuses them.Recognition that is disingenuous oroverdone can backfire. An “employeeof the month” award can be ridiculedif it is not well deserved. Bonusesthat are handed out to everyone atthe same time each year may becomeperceived as entitlements and losetheir effectiveness as rewards.

Be sure to keep rewards meaningful,special, and—at times—unexpected.

Plan B


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impromptu gestures are legitimate ways toreward employees in small ways.

When you are assessing the need for a rewardssystem, be sure to look at it in the context ofyour existing benefi ts package. It may be thatadding or improving benefi ts could constitutepart of your rewards system. Pay special atten-tion to nonmonetary possibilities—time off,improved working conditions, educational

DIFFERENT STROKES

Based on research conducted over thepast five years, global professionalservices firm Towers Perrin hasdiscovered that the qualities thatinitially attract people to a firmare considerably different from thequalities that make them stay. Ina 2005 study, they found that thetop driver of employee attractionto an employer in the U.S. was“competitive base pay,” while the topdriver of employee retention was thatthe organization nurtured employeeswho were motivated and had “theskills needed for the organization tosucceed.”SOURCE: “Talent Management in the 21st Century”by Sandra O’Neal and Julie Gebauer, WorldatWorkJournal (First Quarter, 2006).

THE BOTTOM LINE


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opportunities. Sometimes these are perceived tobe even more valuable than monetary rewards.

The Real Value of a Rewards SystemFor most companies, the payback of a rewardssystem is simple: Employees who are recognizedand rewarded feel valued by the company. Thissense of being important to the group inspiresjob satisfaction and pride, which in turn—at leastpotentially—leads to sustained motivation. Even ifan employee occasionally gets off track, the sense ofbeing someone who matters to the organization isoften enough to sustain a positive attitude.

On the other hand, a rewards system can back-fi re if it is constructed without the feedback and

REWARDING EXCELLENCEA rewards system needs to be carefullythought out to be effective.

• Be consistent in rewarding employ-ees throughout the organization.

• Solicit employee input.

• Give rewards as surprises to keepfeelings of entitlement at bay.

• Avoid repeatedly rewarding onlythe top performers, which cande-motivate modest achievers.

• Offer an improved benefits packageas part of your rewards system.



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involvement of the employees. The whole planto institute a rewards system may seem insin-cere, and employees may feel that the programis meant to recognize only the efforts of a selectfew. It can inadvertently send the message thatthe company respects just a handful of individu-als and that every employee is not equally valued.

But when a rewards system is well designedand inspired by genuine appreciation for acompany’s employees, when it clearly representsthe organization’s goals, when it has a good bal-ance of recognition and rewards, and when it

CASE FILEREWARDING INNOVATION

Innovation is the highest priority at3M, and a whole rewards system hasbeen set up to encourage it. When anew venture is undertaken, the salariesand titles of everyone involved rewardthe work they put into it. A person whois a “first-line engineer” at the start ofwork on a new product, for example,becomes a “product engineer” when itis brought to market, then a “productline engineering manager” when saleshit $5 million, and so on, continuallymotivating people to strive for success.

SOURCE: In Search of Excellence by Tom Peters andRobert H. Waterman, Jr. (Harper Collins, 1982).


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applies broadly across all employees and is basedon fair and objective criteria, then the return onthe company’s investment in the program can beimmense—a workforce that is more highly moti-vated, more satisfi ed, and more productive.

USING NONMATERIAL REWARDSNonmaterial rewards are as signifi cant as mate-rial rewards in motivating employees—and inmany cases, they can be more important.

A 1997 study from the Families and WorkInstitute indicated that “the quality of employees’jobs and the supportiveness of their workplacesare far more important predictors of these out-comes [job satisfaction, commitment, loyalty to

PERFORMANCE INCENTIVESIf you establish a rewards system basedon performance incentives, make surethe ground rules don’t encourage abuseof the system.

For example, if you reward employeesfor reaching a new sales goal, makesure they are not doing so at theexpense of the level of quality providedto existing customers.

While many performance incentiveprograms are well intentioned, they riskturning into a competition that harmsservice quality or even a company’sreputation.

Outside the Box


99

employer, job performance, and retention] thanearnings or fringe benefi ts.”

The 2002 study from the same organizationproduced similar results: “When employees doreceive more support in terms of fl exible workarrangements, supervisors and managers who

are responsive to their personal and family needs,and workplace cultures that are more respon-sive to work-life issues, they appear to be betteremployees—exhibiting higher job satisfaction,greater commitment, and more likely reten-tion—and their personal and family lives benefi tas well.”

“I consider my abilityto arouse enthusiasmamong men the greatestasset I possess. Theway to develop thebest that is in a manis by appreciation andencouragement.”

—Charles Schwab


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Nonmaterial rewards are typically less expen-sive than material rewards and can sometimescost the employer nothing at all. Ironically, how-ever, they can be more diffi cult to implement,because they require a concerted ongoing effortby management to spend time with employeesand pay attention to them. It isn’t quite as simpleas paying out a monetary reward.

Some managers simply do not know how toacknowledge an employee’s contribution. Theyare not comfortable giving the pat on the back,

CASE FILEHONORING THE RUNNER UP

Voyant Technologies honors employeeswho submit great new-product ideas.But the company’s CEO, Bill Ernstrom,also acknowledges what he calls the“best almost-ideas.”

Ernstrom recognizes runners-up withthe “Elisha Gray Award,” named forthe inventor who waited too long toget a patent on his invention: the tele-phone. Ernstrom believes it is impor-tant to encourage future innovationfrom individuals who “thought differ-ently enough—either correctly or incor-rectly—to get somebody’s attention.”SOURCE: “Hands On” by Anne Stuart, Inc. Magazine(August 2002).


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whether it is a handshake, a kind word, or athank-you note. Yet in many cases, a nonmate-rial reward is simply that—an indication thata manager cares enough to take the time toexpress gratitude.

Immediacy and Sincerity MatterRecognition or a nonmaterial reward shouldbe given as soon as possible after an employeehas exhibited the behavior or superior per-formance to be commended. The recognitionshould be specifi cally related to the event ratherthan generalized.

It should also be warm, earnest, and sincere.Some managers make the mistake of convey-ing praise too quickly or even fl ippantly. Otherspraise or fl atter too frequently. “You are doing agood job” loses meaning when it is not associ-ated with a concrete achievement.

“I’ve never knownanyone to complainabout receiving toomuch positive feedback.Have you?”

—Jack Canfield,author of The Success Principles


102

The type of recognition matters less than therecognition itself. However, the expression ofappreciation should suit the achievement. Forexample, a handwritten note is fine when anemployee turns in a report ahead of a dead-line, but as a thank-you for an outstandingeffort on a major presentation, an informallunch would be in order.

Types of Nonmaterial RewardsNonmaterial recognition can take severalforms. An e-mail, a note, or a letter of thanks

MANAGING NONMATERIAL REWARDSTo reap the benefits of nonmaterialrewards, managers need to:

• Understand that an environmentresponsive to work-life issues cre-ates better employees.

• Appreciate that nonmaterialrewards cost less than materialrewards so are good for the com-pany overall.

• Encourage and act on employees’suggestions.

• Give nonmaterial rewards right awaywhenever they are deserved.

• Express their appreciation openly.• Reward specific accomplishments.



103

is always welcome. Bulletin board or intranetposts, or mentions in a company newsletter, aremore public written expressions of commenda-tion. You can also acknowledge an individualin person with a visit to his or her offi ce or alunch out. More publicly, you can praise theperson at a meeting. Recognition devices,such as small gifts, company merchandise,gift certifi cates, or plaques are more enduringreminders. Or you can offer a one-time benefi t,

TRAINING REWARDS

Acquiring new skills and being exposedto new ideas is always stimulating.One great way to reward and energizeemployees whose performance youwant to recognize is to send them to aseminar or convention—perhaps evenwith their spouse. Let them know thatthe trip salutes their achievements.

Then, via a memo, the companybulletin board, or the company news-letter, deliver the same message tothe rest of the staff. Public acknowl-edgement and a new opportunity forpersonal growth will yield a more moti-vated and more loyal employee.SOURCE: Swim with the Sharks Without BeingEaten Alive (Reissue Edition) by Harvey B. Mackay(Collins, 2005).

Outside the Box


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such as a day off or the opportunity to attend aworkshop or seminar.

The Best Reward of AllPerhaps the best nonmaterial reward of all isnot only recognizing an employee’s currenteffort, but opening the door to the possibilityof greater recognition in the future.

Most employees are highly motivated by thepotential for advancement. One of the mostpowerful forms of recognition is an increase inan individual’s job responsibilities—either addi-tional challenges in his or her current position oropportunities to learn something new by cross-training with other departments or divisions.

Make the employee a team leader or havehim or her supervise others. Offer the chanceto work collaboratively with more senior team

SINCERITY AT RISK

Insincerity and lack of support from amanager is de-motivating. Watch outfor the following:

• False enthusiasm

• Patronizing praise

• Poor follow-through and unkeptpromises

• Personal complaints about workloadto an employee

Red Flags �


105

MANY WAYS TO SAY “THANKS!”

Several forms of nonmaterial rewardsmay be appropriate.

One-on-One Recognition

• Handwritten notes and e-mails

• A personal letter

• Notation in human resources file

• Taking the employee to lunch

• Giving the employee a day off

Public Recognition

• Bulletin board or intranet posts

• Mentions in company newsletters

• Praise at staff or company meetings

Opportunities for Personal Development

• New work challenges—supervisoryduties, a team-leadership position,the chance to set objectives andmeasure criteria for success

• The chance to attend a workshop orseminar

Recognition Devices

• A gift or gift certificate

• Awards, plaques



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members, to set both objectives and success-measurement criteria, or to have input intoimportant decisions.

If you fi nd legitimate ways to turn a high-performance employee into a more valuableparticipant on your team, you as well as theemployee will reap the rewards.

Look Inside YourselfIn the fi nal analysis, nonmaterial recognitionand rewards can be among the most powerful

THE COST OF DISENGAGEMENTAn employee engagement survey of theU.S. workforce conducted by Gallup in2006 found that nearly 20.6 millionworkers, or 15 percent, are “activelydisengaged” or fundamentallydisconnected from their jobs. Thistranslates into a cost to the U.S.economy of between $287 billion and$370 billion annually.

The research indicated that activelydisengaged workers are significantlyless productive, less loyal to theircompanies, and more stressed andinsecure about their work than theirengaged colleagues.SOURCE: “Gallup Study: Engaged EmployeesInspire Company Innovation.” The Gallup Manage-ment Journal (October 12, 2006).

Behind the Numbers


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employee motivators. However, they will not benearly as effective if the manager who bestowsthem is not respected by the employee.

To gain that respect, you must make a sin-cere effort to listen to employees, to believe thattheir opinions have value, to advocate for themand—yes—even to admit when you are wrong.This requires that you stop for a moment, lookinside, and manage as much with your heart asyour head.

Caring and compassionate managers whounderstand their employees’ needs also under-stand what motivates and de-motivates each one.These managers intuitively realize the power ofa kind word. They know that it takes more thanmoney alone to keep employees satisfi ed.

“The individual whodoes not embody hismessages will eventuallybe found out, even asthe inarticulate individualwho leads the exemplarylife may eventually cometo be appreciated.”

—Howard Gardner,author of Leading Minds


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USING MATERIAL REWARDSSimply put, people work for pay, and while pay isnot the only motivator, it is a signifi cant one formost workers.

An increase in pay is the most basic form ofmaterial reward. In American business, it has

CASE FILENON-CASH MOTIVATIONAL REWARDSAccording to a Northwestern Universitystudy of 235 managers, “Non-cash programs are more effective inachieving eight out of 10 corporategoals.” That’s why in 2005, KellyServices, a Fortune 500 companyspecializing in staffing solutions suchas temporary office help, introduced“Kelly Kudos,” an incentive programthat uses non-cash awards based onpoints to help increase productivityand retention. With Kelly Kudos, thecompany’s 480,000 U.S. employeescan accumulate award points over timeto earn various kinds of merchandise.The company has found that employeeswho earn points in this program aregenerating three times more revenuethan employees who do not participatein the program.SOURCE: “Recognition That Resonates” byCharlotte Huff, Workforce Management(September 11, 2006).


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become standard practice to increase pay annu-ally. Typically, the only other time an individual’ssalary increases is when a raise accompanies apromotion. As a result, a pay raise is regarded asan entitlement, not as a reward.

Benefits provided by the company to theemployee are also viewed as entitlements,which is unfortunate. A few years ago, therewas a hue and cry among Microsoft employ-ees when, in a cost-cutting effort, a favoriteperk was eliminated —the clean towels thathad been provided to employees who ran orbicycled to work or who exercised duringthe day. Employees at Boeing, also in Seattle,pooh-poohed the outcry, saying that theycouldn’t believe the lavishness of the packageeven without the towels. As their comments

“Regular reinforcementloses impact because itcomes to be expected.Thus, unpredictableand intermittentreinforcements workbetter.”

—Tom Peters and Robert H. Waterman, Jr.


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underscore, some companies’ benefits are farsuperior to others, and this can and should bea legitimate motivator for an employee to joinand stay with a company. Microsoft’s newestemployee initiative, MyMicrosoft, restores thetowels and at the same time adds laundry anddry cleaning, grocery delivery from Safeway,on-premises convenience stores, WolfgangPuck food to go, and discounts on housekeep-ing, yard care, auto repair, pet care, and othernonworkplace services.

TIPS ON MATERIAL REWARDS

Material rewards are significant for theirquality as well as for the recognitionthey imply.

�� Do review your pay structure toensure that it is competitive withinyour industry and geographic area.

�� Don’t implement a material rewardssystem without making a long-termcommitment to it.

�� Do add desirable benefits to yourbenefits package as the companygrows and prospers.

�� Do make sure the value of thematerial reward is appropriate tothe employee’s behavior, effort, orperformance.

Dos & Don’ts


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The best way a company can turn benefitsinto motivators rather than entitlements isto continually remind employees of the valueof those benefits. To do this, some companiessend employees a report of the monetary valueof their benefits at least once a year.

Benefits can also be improved or added asthe company prospers. One motivational tech-nique is to survey workers about the types ofbenefits they would like, and then implementsome or all of those benefits if the company

�� Do make sure any material rewardis based on an outcome that anemployee can achieve and control.

�� Do consider alternatives to cash asmaterial rewards.

�� Don’t rely solely on stock in amaterial rewards program.

�� Don’t assume cash or other materialrewards will solve underlying issuesthat may be causing motivation to fall.

�� Don’t institute team rewardsprograms that create divisiveness orbreak down the cooperative spirit of ateam.

�� Don’t make material rewards tooselective and restricted.


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meets its performance objectives for the year.If employees associate the desirable benefitswith company performance, and if they alsounderstand the role they play in helping thecompany succeed, then benefits can becometangible rewards.

Individual RewardsOutstanding effort or performance on the part ofan individual employee may justify a special one-time material reward. A “spot bonus” of cash, agift card, or some other type of material reward isa way to acknowledge an employee and motivatehim or her to keep up the good work. If it is unex-pected, it has even greater value to the recipient.

When you recognize an individual’s effortwith a material reward, it is often appropriateto acknowledge the individual publicly as well.Recognition connected to a reward is a very pow-erful motivator. The individual’s achievementand reward can also inspire other employees.Make sure, however, that the individual effortis truly worth recognizing in a group setting.Otherwise, employees may resent instead ofappreciate the recognition.

Team RewardsMonetary and other material incentives canmake the point that working as a team can berewarding. Such rewards might take the formof prizes, vacations, bonuses, profi t sharing, orstock options.

The key element is to distinguish team rewardsfrom individual rewards. Having team members


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share in a bonus pool that increases as the teammeets certain specifi c objectives is differentfrom rewarding an individual salesperson whoexceeds his sales quota. Any team reward should

CASE FILEA SYSTEM TO STIMULATE CHANGE

When former General Electric CEOJack Welch sought to spark andsupport entrepreneurial behavior all upand down the ranks, he targeted thecompensation system—traditionallyconsisting of salary increases of 3 to4 percent annually for all and yearlybonuses of 10 to 15 percent formost of the more senior people. Thenew system boosted salary increasesand bonuses—to 10 to 15 percentand 30 to 40 percent respectively.And rather than handing them outsolely to the people at the top of thecorporate hierarchy, the new planreserved rewards for the entrepreneursand most effective managers in thecompany. This was the first step incompletely redefining the fundamentalbond between GE and its workforce.SOURCE: The Individualized Corporation by Suman-tra Ghoshal and Christopher Bartlett(HarperBusiness, 1997).


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be equitably distributed in a way that does notfavor one employee over another.

Remember that material rewards for teamsshould encourage and promote teamwork, notcreate divisiveness. The objective is to reinforcethe notion that, by working as a team, individualscan reap benefi ts not otherwise available to them.

Some companies use the team rewardsapproach to establish friendly competitionamong work groups in an organization. Whilethis may work in your organization, it is wise toproceed with caution. Pitting one team againstanother can indeed result in higher achievement,but it can also create an intensely competitivespirit that can turn teams against one another in

REMEMBER THE OTHERSIt is likely that only 20 percent of youremployees—if that—make outstandingcontributions to your organization. Thissmall percentage represents the fewsuperstars who may exceed even yourmost aggressive objectives.

Although these employees shouldbe rewarded, the others also meritattention. The 80 percent of youremployees who work consistently, dayin and day out, contributing in somany little ways to your organization’ssuccess, are important as well. Letthem know you appreciate their efforts.

The BIG Picture


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a ruthless effort to win. Additionally, be careful toset objectives that are not counterproductive. Forexample, if you establish a team objective relatedto a quantifi able number, be sure that the teamis legitimately performing as required, not justfocused on reaching that number for the sake ofthe reward. It is important to maintain a sense ofgreater organizational good if you choose to rewardteams for competing with one another.

Company RewardsA common motivational material reward at thedivision or company level is a bonus or profi t-sharing program.

CASE FILEBELIEVE IN YOUR PEOPLEWhen the Brunswick Corporationwent through a restructuring, moralewas sinking. Then CEO Jack Reichertquintupled the authority to sign offon capital expenditures for everyonein the organization. For instance, the$100 expense that you once couldapprove became $500. Accordingto Reichert, this left no question inpeople’s mind as to whether theywere trusted. After two years,Brunswick was a stronger, moreproductive company.SOURCE: Reinventing Leadership by Warren Bennisand Robert Townsend (HarperCollins, 1997).


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CASE FILE

Typically, a profi t-sharing program distributespayments to employees based on the organi-zation’s successful achievement of a fi nancialor productivity objective. Since all employeescontribute to that objective, each individualis eligible to receive a portion of the profi t.Sometimes this portion is based on longevity orseniority. Profi t sharing motivates individuals towork on behalf of the entire organization to getthe maximum fi nancial reward.

Stock options are another material reward thatcompanies use as a motivational tool. A company

HOTMAIL MILLIONAIRESWhen Hotmail was in its developmen-tal stages, twentysomething founderSabeer Bhatia wanted to light a fireunder his people. So, to communicateboth the urgency of the project and hisdesire for big ideas—and to give every-one a stake in Hotmail’s success—hegave out not $100 here or there butstock in the company. In less thantwo years, he had amassed 20 millionclients and had sold Hotmail for $440million. And as stock owners, fully halfof his staff had earned millions fortheir contributions.SOURCE: It’s Not the Big That Eat the Small . . . It’sthe Fast That Eat the Slow by Jason Jennings andLaurence Haughton (HarperBusiness, 2000).


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can grant stock options as a “signing bonus,” or tiethe options to a combination of employee senior-ity and longevity. Typically, once an employeereaches a certain number of years of employment,the option to purchase stock, or receive stockwithout cost, can be exercised.

Stock can have a higher or lower perceived valuethan cash, depending on the fi nancial strength ofthe company and the long-term performance ofits stock. If the company is private, the stock mayhave a somewhat lower perceived value, because itcannot be sold on the open market.

Nonetheless, stock is a material reward thatcan be benefi cial to both the company and theemployee in that it represents a longer termcommitment for both parties.

Material rewards, whether cash, goods, orstock, can be the foundation of an effectiverewards system. But they can be even moremotivational when accompanied by nonmaterialrecognition that is genuine.

�“The leaders who workmost effectively, it seemsto me, never say ‘I.’ Andthat’s not because theyhave trained themselvesnot to say ‘I.’ They don’tthink ‘I.’ They think ‘we’;they think ‘team.’”

—Peter Drucker

Essential Skill IVMotivationalLeadership

�L

eaders establish a vision, formulate strategies, scan the horizon for future problems and

opportunities, generate ideas, and initiate new ways of doing things. Importantly, they also motivate employees.


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Leaders do this by modeling the right behavior,setting high goals and standards for the companyand for themselves, and displaying characterand courage in their decisions and actions. Thesense of purpose they exhibit, the image of apromising future that they paint, and the senseof urgency about the goals that can be achievedtogether make people excited about the com-pany—and about them as a role model. In all ofthis, they motivate their followers to achieve.

Leaders can be found at all levels of a company,not just at the top. In The Leadership Engine,author Noel Tichy expresses the idea that thebest companies actively develop leadership quali-ties up and down the ranks. As a manager, youare in a position to lead your group, but you haveto earn the right—and the privilege. You do thatby your contributions to the company.

You are consistently reliable; demonstrateintelligence, broad-mindedness, and a sense offair play; show imagination and a willingness toinnovate; and are direct and honest day in andday out. You support your colleagues and takethe high road through confl ict. You consistentlyexceed expectations. Through your actions, yourcolleagues learn that they can trust you. Theycome to have faith in your decisions, and knowthat you will always do the right thing, morallyand ethically. Employees who feel that you arelistening to them and employees who are learningfrom you are growing. And a growing, learningemployee is, most likely, a motivated one.

Inspiring motivation in your staff yieldsloyalty and longevity. Without a strong leader,

M O T I VAT I O N A L L E A D E R S H I P

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a business may plod along and never achievegreatness. But strong leaders who do all ofthese things make for stronger companies.

LEADING DURING CHANGEMany people like to settle into a routine. Theyare comforted by the prospect of doing the sametasks tomorrow, in the same way, that they didtoday. They embrace the idea of a secure future

in a known, static environment. They view theprospect of change as disruptive, diffi cult, anddemanding. Change itself is de-motivating forthese people.

“Leadership seems tobe the marshaling ofskills possessed bya majority but usedby a minority. But it'ssomething that can belearned by anyone, andtaught to everyone.”

— Warren Bennis and Burt Nanus,authors of Leaders


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A CHECKLIST FOR LEADERS

Remember that having the title of leaderdoesn’t make you one. First, you mustearn the trust of your people.

�� Don’t lead without a vision.

�� Do communicate your vision toyour staff.

�� Do present a long-range view ofproblems and opportunities.

�� Do remain positive and upbeat.

�� Don’t hide bad news.

Dos & Don’ts

Yet in today’s business world, with consumertastes evolving and technology expanding ourworld with every passing day, change is also aconstant. The Japanese, revealing their under-standing that change is essential in order tobetter oneself, have a philosophy they call “kai-zen”—continual improvement.

As a leader, it’s up to you to make changethe status quo, and to bring those who resistchange—and that may be a signifi cant portionof your staff—into alignment with those who areenergized by it.

Resistance to change can take the form of com-plaining about the new boss or grousing aboutnew rules and processes that change brings. Many


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�� Do recognize that people need to bemanaged as well as led.

�� Don’t assume that success energizesemployees as it does you.

�� Do empathize with employeesstruggling with growing pains.

�� Do communicate frequently withemployees to let them know theirefforts will be rewarded—and followup on your promises.

employees actually fear change, since it representsnew, uncharted territory and a potential loss ofcontrol over the on-the-job aspect of their lives.

But powerful leaders draws even the mostreluctant into the process of change. Theyencourage dialogue about change. They answerquestions honestly and share information aboutplans for the future.

Highlighting the powerful positive aspects ofchange, they transform fear and resistance intoacceptance. The goal setting and team work thatare so integral to change provide opportunitiesfor employees to stretch and broaden theirskills, to take on new challenges—and to enjoythe satisfaction of doing good work and be


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rewarded for it. In this way, change can yield ahost of motivational opportunities—and canenergize the entire company.

Managing Change Is PossibleIt is generally more diffi cult to be a leader than amanager. While you can acquire leadership skills,some of what you need to be a leader is deepdown inside of you. You need to have the abil-ity to express a vision. You need to have a goodgrasp of your own beliefs and values before youcan inspire or motivate others. You also need tobe a great communicator.

A situation of change draws on all these skills,as well as your managerial skills. You must dealwith every individual, because one negative indi-vidual can sway the attitude of an entire workgroup, even if most of its members are positiveor neutral.

John Kotter and Dan Cohen detail a multi-step change process in their book The Heart ofChange (Harvard Business School Press, 2002)that could help leaders better prepare to lead andmanage change.

First, establish a sense of urgency. Next, form aguiding coalition of change supporters, who willsupport and promote your initiatives. Third,create a vision —a picture of the future—andcommunicate it repeatedly, in many ways.Fourth, empower others to act on the vision.Fifth, realize that change takes a long time,so plan for and create short-term wins. Keepthe momentum for change moving over time.Finally, institutionalize the new approaches


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GETTING COMFORTABLE WITH RISK

Most change leaders are not averseto risk. Change brings organizationalbumps, the potential loss of goodpeople, and uncertainty about thefuture. However, the potential rewardsoften outweigh the risks.

Change leaders create a strong, clearvision, formulate a solid plan, andrally the support of others. They stayfocused on long-term success, evenwhen faced by temporary setbacks.All this minimizes the risk and keepschange moving in the right direction.

The BIG Picture

you have created during the process to makechange “stick.”

LEADING DURING GOOD TIMESWhen an organization is doing well, it is usu-ally in a growth situation. The organization isadding customers, increasing sales, and build-ing profits. The growth may require addingmore managers and more staff to do the work.Responsibility for training these new arrivalsmay fall on the shoulders of current employeesand managers. While good times might seemenviable, they can be just as challenging as toughtimes for a leader.


126

KEY SKILLS OF LEADERSHIPWhether change and tough times areenergizing or de-motivating has a lot todo with how they are viewed and handledby the company’s leader.

�� Don’t isolate yourself.

�� Do emphasize change as continuous.

�� Don’t give the impression that change will be easy.

� � Do talk openly about the challengesof change, including the possibility ofre-structuring or downsizing.

�� Do encourage employees to askquestions and offer feedback, in goodtimes and bad.

�� Do keep your thoughts focused onyour goals to keep your morale high.

Dos & Don’ts

New DemandsGrowth might bring with it the need for employ-ees to work harder to keep up with new business.It might mean employees need to learn newskills on the job. It might lead to some employeesshifting to new responsibilities or new groups, orbeing assigned to new managers.

The result of growth could make it diffi cultto maintain the quality of service, or could evenmean a loss of service quality, as the organization


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� � Do give employees the feeling that,although you may not have all theanswers, you have a sense of how toget through tough times.

�� Do recognize that challenging timeswill require sacrifices and unpleasantdecisions.

�� Don’t create pictures that are falselyoptimistic.

�� Don’t delay inevitable layoffs.

�� Don’t withhold information.

�� Don’t put individual employee issueson hold when dealing with companychallenges.

attempts to meet customer demands. It mighttake longer to get things done because of newstaff and more people involved in the process.

It is not unusual for an organization inthe midst of such growth to fi nd employeesfrustrated, angry, burning out, or losing theirmotivation. When employees are overworkedor in a constant state of upheaval, they wearout. Even material rewards will do little tomotivate them.


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What You Can DoIt is crucial for a leader to balance his or her per-sonal exhilaration with growth and success withempathy for the challenges facing the organiza-tion’s workforce.

Good motivational leaders show compassionfor their employees during growth periods. Theyurge the group to keep going and not give up.They try to institute improvements in workingconditions to ease the stress.

In addition, they fi nd ways to help employeeslighten up and have fun. They remind employees

CHANGE AGENT

There are ways to make the process ofchange go more smoothly.

�� Do enlist a group of individuals aschange supporters.

�� Do put extra effort into creating andcommunicating your new vision.

�� Don’t assume everyone will embraceand understand the need for change.

�� Don’t try to implement changewithout a plan that includes bothshort- and long-term goals.

�� Do remain as positive andenthusiastic as you want others to be.

Dos & Don’ts


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that their efforts will be rewarded, and they helpemployees see that there is an end in sight.

A motivational leader is an effective general wholeads employees to succeed. However, the leaderalso makes his or her presence known on the fi eldof battle. Employees like to know that the leader isnot just leading, but standing with them—in goodtimes as well as in tough times.

The Greatest GiftA leader’s greatest gift is a motivated organi-zation—people who are happy working as a

�� Do demonstrate honesty, openness,and compassion during change,especially if it is painful.

�� Do create short-term wins so peoplecan continue to support change overthe long term.

�� Don’t forget that change is acontinual process that needs to bere-energized over time.

�� Do bring everyone on board, so thateach employee feels invested in asuccessful outcome.


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GROWING PAINS

Even when growth is your goal,achieving it can be disruptive and canhurt employees’ motivation in the shortterm. Watch out for:

• Overburdened employees

• Employee burnout

• A decline in staff morale

• Apprehensiveness on the part ofemployees

Red Flags �

coordinated, supportive team toward acommon goal.

If you visit a motivated organization, youimmediately sense the difference. There isa vibrant energy and a buzz of excitement.People seem to move as if they can’t get wherethey are going fast enough. Positive enthu-siasm pervades the atmosphere and there islaughter in the hallways.

These are the types of organizations that sur-vive and thrive in the most challenging businessenvironments. These are the organizations thatsucceed even in the face of adversity. Such moti-vated organizations do exist—but only when theleaders themselves are just as motivated.

It is the organization’s leaders, from the super-visor to the department head to the division


131

head to the CEO, who must inspire the compa-ny's employees and kindle their spirit.

It is great leaders who motivate employeesto be great.

LEADING DURING DIFFICULT TIMESBeing a motivational leader when times are toughis a test of a leader’s strength and positive attitude.The most challenging situation is a restructuring

or downsizing. Restructuring or downsizing inevi-tably means staff layoffs. Nothing can be moredemoralizing and demotivating than the depar-ture of coworkers. Bonds are broken and workingrelationships dissolved. The departing employeesmay be angry or resentful. Those who remain are

“If a manager wants tomake the transition frommanager to leader, heor she must activelyseek out the goodnews and then publiclyacknowledge thoseresponsible.”

—Jason Jennings and Laurence Haughton,authors of It’s Not the Big that Eat the Small . . .

It’s the Fast that Eat the Slow


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sad to say good-bye to their colleagues but at thesame time relieved to be spared—and apprehen-sive that they might be the next to go.

The departures are likely to increase the work-load for the survivors. They may be asked tomake sacrifi ces and to do more with less. Frozensalaries and reduced benefi ts, if they’re a part ofthe picture, only exacerbate the situation.

PLUMMETING MORALE

During tough times, employee moralecan plummet rapidly. Look for thesewarning signs.

• Lack of interest and enthusiasm

• Frequent absences or requests forpersonal time

• Sadness over other employees beinglaid off

• Anxiety about employees’ positionsbeing restructured or eliminated

• Despair about the company’scondition

• Skepticism about management’sexplanations of the situation

• Anger expressed toward coworkersor managers

Red Flags �


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Offering HopeHow can a leader motivate the workforce at atime like this? One of the most important things aleader can do is to be honest. Facts and decisionsmust be communicated honestly and openly. Thisis not a time to withhold information.

It’s also key to let employees know that themanagement team is making every effort tosolve the problem—but without implying thatyou have all the answers. You want to encourageemployees to ask questions and to offer feed-back. Then you need to consider the commentscarefully, and respond.

Employees will be looking to you for direc-tion and hope. Intuitively, they know that youcannot singlehandedly change business condi-tions or arrest declining sales. They do want toknow, however, that you have a sense of howto weather the storm and navigate through thetough times.

As a leader, you yourself need to remain posi-tive and motivated—no matter how hard thatis. If your own morale is high, it will rub off onyour employees, hard times notwithstanding.

OTHER CHALLENGESLeaders face a whole host of other challenges.Perhaps the organization’s entire industry isundergoing changes. Perhaps the company’sturnover rate is very high. There may berevelations that the organization is beinginvestigated or that a CEO or senior manageris leaving. Rumors of a merger or acquisitioncan also be challenging.


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LEADING CHANGE

A leader has a big influence on howchange is viewed in an organization.Certain points bear remembering.

• The status quo is an obstacle—most people don’t want change.

• Employees must be shown thetangible benefits of change toembrace it.

• Leaders should prepare people forthe continual possibility of changein business.


All of these scenarios constrain the leader’sability to motivate the workforce. Preoccupiedwith his or her own challenges, the leader maytake the attitude that “employee problems willhave to wait.” However, it is at a time like thisthat employee issues are most pressing. Anyorganizational change or upheaval tends tohave a more profound effect on the workforcethan on the management. Leaders need tounderstand the implications of this reality.

Choose to LeadLeaders meeting the challenges of business needto be the individuals that their organizationswant and need. Sometimes, leaders will be forced


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to put others’ needs fi rst—to sacrifi ce time withtheir families and to deal with unpleasant deci-sions. Being a leader can be demanding. Butthe leader who is able to motivate people canattain immense rewards—most importantlythe loyalty and friendship of the group of indi-viduals who hold direct responsibility for theorganization’s success.


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You are now ready to put what you havelearned from this book into practice. Usethis section as a review guide:

CHAPTER 1.UNDERSTANDING MOTIVATION

• What motivates some won’tmotivate all.

• After people have met basic needs,they want to satisfy higher needs.

• Employees’ enthusiasm for a job fallsoff after six months.

• Even naturally motivated employeescan lose their motivation ifmanagement does not nurture it.

• Motivation decreases turnover andincreases productivity.

CHAPTER 2.BEING A MOTIVATIONAL MANAGER

• Managers cannot motivate others ifthey themselves are not motivated.

• The motivational manager inspiresemployees to succeed.

• Trust, confidence, and respectare vital.

Off and Running >>>

137

O F F A N D R U N N I N G

• Managers who trust and respectemployees do not micromanage.

• Active listening shows you trulyunderstand what is being said.

• Negative feedback can be valuable,if it is offered as constructivecriticism.

• To motivate teams, establish aspecific performance goal and nurturea sense of common purpose.

CHAPTER 3.DEALING WITH DE-MOTIVATION

• The employer’s financial problems,a merger, reorganization, increasedworkload, disagreements withcoworkers, and other issues arede-motivating.

• A savvy manager minimizes theimpact of negative influences.

• Hiring the right people helps delaydeclining motivation.

• A manager must always be alert forsigns that motivation is waning.

• Good managers deal immediately withde-motivation.


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• Lack of motivation can yieldundesirable behavioral problemsthat must also be handled.

CHAPTER 4.REWARDING MOTIVATED EMPLOYEES

• Employees who are recognizedand rewarded feel valued by theircompany.

• Some studies show that recognitionmotivates employees; others point tomoney as the strongest motivator.

• Praise your stars but rememberthat consistent efforts by averageemployees are essential to success.

• A rewards system must be fair andconsistent to be effective.

• Nonmaterial rewards are effective buthard to implement.

• Recognition must be keyed to aspecific event to be effective.

• Job advancement keeps motivationhigh.

• Nonmaterial rewards mean more whenthey come from a respected manager.

• Disciplinary actions are essential

Off and Running >>>

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O F F A N D R U N N I N G

if the negative behavior or subparperformance does not improve.

CHAPTER 5.MOTIVATIONAL LEADERSHIP

• Good leaders are honest, confident,visionary, inspirational, intelligent,fair, broad-minded, courageous,straightforward, and imaginative.

• Change represents disruption andpotential loss of control for employees.

• Good times can be just as challengingas tough times for a leader.

• Employees want to know that you havea sense of how to weather the stormand will help them get through thetough times.

• Effective leaders at all levels turnnegative energy into positive energyand motivational opportunities.

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The Transparent Leader: How to Build a Great CompanyThrough Straight Talk, Openness, and AccountabilityHerb Baum with Tammy KlingIn the wake of numerous corporate scandals, Baum offersbusiness leaders a compelling method to get maximumresults by being open and honest in business practices.

Leaders: Strategies for Taking Charge, 2nd ed.Warren Bennis and Burt NanusLeadership guru Warren Bennis and coauthor Burt Nanusreveal the four key principles every manager should know.

On Becoming a Leader: The Leadership Classic, Updatedand ExpandedWarren BennisIn this best-selling classic, Warren Bennis discusses howgreat leaders have the ability to “unite people in a commonpurpose.” This is a must-read for those seeking insight intomotivating people to do their best.

Reinventing Leadership: Strategies to Empowerthe OrganizationWarren Bennis and Robert TownsendTwo of America’s foremost experts on leadership show howtheir strategies can lead organizations into a future thatincludes increased employee satisfaction and continuedeconomic growth.

RecommendedReading

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The Success Principles™: How to Get from Where You Are toWhere You Want to BeJack Canfield with Janet SwitzerOne of the coauthors of the incredibly successful ChickenSoup for the Soul series provides principles and strategies tomeet a wide variety of goals.

Good to Great: Why Some Companies Make the Leap . . .and Others Don’tJim CollinsThis best-selling book distills research on thousands ofcompanies down to eleven that did the right things tobecome great. It provides insight into how the heads of thesecompanies motivated people to drive organizational success.

The Daily Drucker: 366 Days of Insight and Motivation forGetting the Right Things DonePeter F. Drucker with Joseph A. MaciarielloWidely regarded as the greatest management thinker ofmodern times, Drucker here offers penetrating andpractical wisdom with his trademark clarity, vision, andhumanity.

The Effective ExecutivePeter F. DruckerDrucker shows how to “get the right things done,”demonstrating the distinctive skill of the executive andoffering fresh insights into old and seemingly obviousbusiness situations.

The Essential Drucker: The Best of Sixty Years of PeterDrucker’s Essential Writings on ManagementPeter F. DruckerA compilation of Drucker’s key principles.

Innovation and EntrepreneurshipPeter F. DruckerThe business bible for presenting innovation andentrepreneurship as a purposeful and systematic discipline.

Management Challenges for the 21st CenturyPeter F. DruckerDrucker explains how businesses can reinvent themselves toretain relevance in our modern society.

R E C O M M E N D E D R E A D I N G

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Managing for ResultsPeter F. DruckerDrucker shows how to see beyond conventional outlooks andopen up new initiatives that help grow your business andmake it more profitable.

The Practice of ManagementPeter F. DruckerThe first book to depict management as a distinct function,this classic Drucker work is the fundamental book forunderstanding this.

Corps Business: The 30 Management Principles of theU.S. MarinesDavid H. FreedmanFreedman examines the organization and culture of theUnited States Marine Corps and relates how businessenterprises could benefit from such Marine values as sacrifice,perseverance, integrity, commitment, and loyalty.

The E-Myth Manager: Why Most Managers Aren’t Effectiveand What to Do About ItMichael E. GerberDrawing on lessons learned from working with more than15,000 small, medium-sized, and very large organizations,Gerber reveals why management doesn’t work—and what todo about it.

Common Sense Business: Starting, Operating, and GrowingYour Small Business in Any Economy!Steve GottryThis book tells you how to succeed in every phase of thesmall business life-cycle—from starting to operating,growing, and even closing down a business. Gottry offerspractical applications in the real world of small business.

It’s Not the Big That Eat the Small . . . It’s the FastThat Eat the Slow: How to Use Speed as a CompetitiveTool in BusinessJason Jennings and Laurence HaughtonThis is an instructive text on how to create strategic planningand creativity to speed your business past the competition.


143

What Really Works: The 4+2 Formula for SustainedBusiness SuccessWilliam Joyce, Nitin Nohria, and Bruce RobersonBased on a groundbreaking 5-year study, analyzing data on200 management practices gathered over a 10-year period,What Really Works reveals the effectiveness of practices thattruly matter.

The Wisdom of Teams: Creating the HighPerformance OrganizationJon R. Katzenbach and Douglas K. SmithKatzenbach and Smith reveal what is the most importantelement in team success, who excels at team leadership, andwhy companywide change depends on teams.

The Five Dysfunctions of a Team: A Leadership FablePatrick M. LencioniBeginning with a real-life scenario, this insightful bookreveals how a CEO came to a company and built trust bycombating five specific team dysfunctions: absence oftrust, fear of conflict, lack of commitment, avoidance ofaccountability, and inattention to results.

Swim with the Sharks Without Being Eaten Alive: Outsell,Outmanage, Outmotivate, and Outnegotiate Your CompetitionHarvey B. MackayIn this straight-from-the-hip handbook, with almost 2 millionin print, best-selling author and self-made millionaireMackay reviews the secrets of his success.

Harvard Business Review on Motivating PeopleBrook Manville et al.This book provides the perspectives of numerous thoughtleaders on the challenges of motivating employees, fromarticles that originally appeared in the Harvard BusinessReview.

You Can’t Win a Fight with Your Boss: & 55 Other Rulesfor SuccessTom MarkertThis guide to surviving the pitfalls of the modern corporateenvironment presents 56 practical rules that you can use tofind corporate success.


144

Executive Intelligence: What All Great Leaders HaveJustin MenkesIn this thought-provoking volume, Menkes pinpoints thecognitive skills needed to excell in senior managementpositions.

The Corporate Coach: How to Build a Team of LoyalCustomers and Happy EmployeesJames B. Miller with Paul B. BrownFounder and CEO of Miller Business Systems, Jim Millershows how giving customers legendary services and alsomotivating employees make for a winning combination.

The HP Way: How Bill Hewlett and I Built Our CompanyDavid PackardDavid Packard and Bill Hewlett grew their company fromits start in a one-car garage to a multibillion-dollar industry.Here is the story of the vision, innovation, and hard workthat built an empire.

In Search of Excellence: Lessons from America’sBest-Run CompaniesThomas J. Peters and Robert H. Waterman, Jr.Based on a study of 43 of America’s best-run companiesfrom a diverse array of business sectors, In Search ofExcellence describes eight basic principles of managementthat made these organizations successful.

Quiet Leadership: Six Steps to Transforming Performanceat WorkDavid RockRock demonstrates how to be a quiet leader, and a masterat bringing out the best performance in others, by improvingthe way people process information.

Mavericks at Work: Why the Most Original Minds inBusiness WinWilliam C. Taylor and Polly G. LaBarreFast Company cofounder William C. Taylor and Polly LaBarre,a longtime editor at the magazine, profile 32 maverickcompanies in an effort to examine the “most original mindsin business.”


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The Cycle of Leadership: How Great Leaders Teach TheirCompanies to WinNoel M. TichyUsing examples from real companies, Tichy shows howmanagers can begin to transform their own businesses intoteaching organizations and, consequently, better-performingcompanies.

The Leadership Engine: How Winning Companies BuildLeaders at Every LevelNoel M. TichyA framework for developing leaders at all levels of anorganization helps develop the next generation of leaders.This enables a company to grow from within, which is thekey to excellence, stability, and building team loyalty.

The Visionary’s Handbook: Nine Paradoxes That Will Shapethe Future of Your BusinessWatts Wacker and Jim Taylor with Howard MeansIn this book the authors show how nine paradoxes define theworld’s business and social climates.

WinningJack Welch with Suzy WelchThe core of Winning is devoted to the real “stuff” of work.Packed with personal anecdotes, this book offers deepinsights, original thinking, and solutions to nuts-and-boltsproblems.


146

AAlbin, Marc, 91Albin Engineering Services,

Inc., 91Apple Computer, 37, 53Aramark, 41

BBartlett, Christopher, 113Bennis, Warren, 115, 121Best Buy, 76Bhatia, Sabeer, 116body language, 34, 38Brunswick Corporation, 115Buchanan, Leigh, 16, 52, 91Business Research Lab, 36Byrne, John A., 39

CCanfi eld, Jack, 101Carlson, Ed, 12change

system to stimulate, 113Charles Schwab & Co, 17, 99Chrysler, 71Cloud, Henry, 49Collins, Jim, 18, 61, 80, 89, 97,

103communication, 34, 52

get your message across, 33learning to communicate, 35learning to listen, 45

sending your message in writ-ing, 42

Covey, Stephen R., 6

Dde-motivation, 56, 104, 137

reducing, 58signs of, 66, 67

diffi cult situations, 78disciplinary action, 80discipline

progressive, 81Drucker, Peter, 4, 24, 118

EEisenhower, Dwight D., 20employee

approaching, 67behavior, 73, 79betrayal, 30lack of confi dence, 78morale, 132negativity, 80qualifi cations, 61retention, 95showing respect for, 27

Ernstrom, Bill, 100Eze Castle Software, 52

Index

147

Ffeedback, 45Feuerstein, Aaron, 28Fromartz, Samuel, 66

GGallo, Carmine, 37Gallup, 106Gardner, Howard, 107Gebauer, Julie, 95Geiser, Lon, 29General Electric, 62, 88, 113Gerstner, Lou, 37Ghoshal, Sumantra, 113growth consequences, 126Gruner, Stephanie L., 11

HHaughton, Laurence, 116, 131hiring, 64

employee qualifi cations, 61employee references, 62interviews, 62

Hotmail, 116Huff, Charlotte, 108

IIacocca, Lee, 71IBM, 37

JJennings, Jason, 116, 131Jobs, Steve, 37, 53

KKannappan, S. Kenneth, 86Katzenbach, Jon R., 48Kauffman, Ewing Marion, 58Kelleher, Herb, 11, 69Kelly Services, 108Kiger, Patrick, 76

LLander International, 66leaders

motivational, 128taking risk, 125

leading

challenges of, 133change, 134during change, 121during diffi cult times, 131during good times, 125

leadershipkey skills of, 126–27motivational, 118, 139

MMackay, Harvey B., 103Malden Mills, 28management by exception, 90manager

expectation, 26insincerity, 104motivational, 2, 20, 136

managing change, 124Maslow’s hierarchy of needs, 7Maxwell, John C., 74McGrory, Mary, 28McLaughlin, Sean, 52Metzger, John, 16Metzger Associates, 16Mochari, Ilan, 86motivating

individuals, 44knowing how, 23secrets of, 40teams, 48, 50, 54using fear to, 68using humor to, 69with outside benefi ts, 16with passion, 37

motivation, x, 136clinical look at, 29continual, 25declining, 5fun, 11inspired, 72issues, 70keeping high, 60management’s role, 13on the job, 9personal, 8personalizing, 39reverse declining, 77unorthodox, 66why employees lose, 59

Murdoch, Rupert, 43

NNanus, Burt, 121NBA, 84NCAA, xNews Corporation, 43

I N D E X

148

OO’Neal, Sandra, 95organization

mission and motivation, 63motivated, 129-131

PPelaez, Roy, 39performance incentives, 98Peters, Tom, 44, 46, 78, 97, 109Pitino, Rick, xPlantronics, 86progressive discipline, 81puzzles, 44

Rrecognition, 42

builds loyalty, 36matching to objectives, 87versus rewards, 87immediacy and sincerity, 101

Reichert, Jack, 115resolution, 73responsibility, 45rewarding

excellence, 96innovation, 97motivated employees, 84, 138star performers, 90superstars, 114with money, 90

rewards, 86barriers to r. systems, 89company, 115establishing a system of, 92–93individual, 112lack of, 91material, 108, 110–11non-cash motivational, 108nonmaterial, 98, 102, 105personality required for, 106potential for more, 104runner-ups, 100stock, 116team, 112training, 103value of r. system, 96when r. don’t work, 94

Riley, Pat, 84Results-Only Work Environment, 76

SSchultz, Howard, 37Schwab, Charles, 17, 99self-resolution, 75Sirota, David, 5, 9, 10, 12Southwest Airlines, 11, 69Spitzer, Dean R., 32Starbucks, 37Stein, Morris I., 29Stuart, Anne, 100

T3M, 97team cooperation, 51Tichy, Noel M., 88, 120Tiller, Tom, 88Towers Perrin, 95Townsend, Robert, 115trust, 24, 115Tuck, Richard, 66

UUnited Airlines, 12

VVoyant Technologies, 100

WWaterman, Robert H., Jr., 44, 46,

97, 109Welch, Jack, 62, 82, 113Westberg, Jon, 66wording

importance of, 9workforce

under-motivated, 32underappreciated, 10

ZZiglar, Zig, 56

I N D E X

Barry Silverstein is a business writer and management consultant. He has 30 years of experience managing and motivating people in small and large businesses. He founded his own direct and Internet marketing agency and ran it for 20 years, growing it to a $5 million, 50-person organization. He also held management positions with Xerox Corporation and advertising agency Arnold Worldwide.

Silverstein is the author of three titles in the Collins Best Practices series. He is also the coauthor of The Breakaway Brand (McGraw-Hill, 2005) and the author of Business-to-BusinessInternet Marketing (Maximum Press, 2001) and Internet Marketing for Information Technology Companies (Maximum Press, 2001).

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