Category Archives: Motivation

Book review: Payoff by Dan Ariely

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Payoff, The Hidden Logic That Shapes Our Motivations, is a short book with an important message: “We suck at motivation.”

Based on fascinating research from workplaces and psychology labs  all over the world, the book documents how we consistently fail to understand what really motivates ourselves and others and consequently end up  killing motivation off, when we try to strengthen it, much of the time.

Nowhere is this more obvious than in the workplace, where a blind belief in the power of bonuses, raises, promotions and perks has kept managers doing the wrong things for (or to) their employees for decades.

Dan Ariely, a professor of Psychology and Behavioral Economics at Duke University, is the perfect person to convey this message. As a researcher he has conducted fascinating and very elegant experiments to uncover what motivates and demotivates us. He shared two of these in this TED talk:

In Payoff he uses his own research and that of others to get to the truth of motivation. And while he clearly shows that performance bonuses can actually reduce performance, he also shares the factors that motivate us to do better. These include things like praise, meaningful work and a real connection to the people you work with.

This is a short book (120 pages) but that just counts in its favor, in my opinion. It is a captivating read, incredibly useful and highly entertaining – in fact I laughed our loud several times while reading it.

In short, I hope I have motivated you to read this book :)

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Podcast with Søren Lockwood – a (very happy) financial CEO

Michal Srajer, one of our Partners in Prague, is currently travelling the world and interviewing many different people for his podcast about happiness at work. His first interview was with me and you can hear it here.

His second podcast features Søren Lockwood, the CEO of SEB Pension in Denmark, who took his company of 300 serious financial professionals in dark suits through a transformation that has resulted in happier employees, lower absenteeism, happier customers and better results.

You can hear the podcast here:

Søren Lockwood also spoke at our conference this year in Copenhagen, where examined the classic question of whether  you can prove that happiness at work is good for the bottom line. He gave the best answer EVER:

 

IKEA UK voluntarily raises wages for lowest-paid workers

This announcement from Pernille Hagild, Ikea’s HR Manager in the UK and Ireland, is beyond awesome:

We will adopt the Living Wage (as defined by the Living Wage Foundation) from the 1 April 2016. This means all our co-workers across the UK will receive a minimum of £7.85 per hour and £9.15 per hour within London. The Living Wage is a hot topic in the press at the moment so we feel it’s important to explain why we have made this decision.

Ikea has seen that the UK minimum wage of GBP 6.75 is too low to allow many of their employees to live well and have therefore decided to voluntarily raise salaries to follow the recommendations of the Living Wage Foundation.

Why? Because Ikea’s values are not only about doing good for the customer but also extend to the employees. Pernille puts it like this:

Ikea is a values-driven company. We are guided by a vision “to create a better everyday life for the many people” and this vision includes our co-workers as much as our customers and the communities touched by our business. Providing a meaningful wage to all of our co-workers, that supports their cost of living, is an important part of our values which are fundamental to who we are.

Of course this is not cheap:

The initial £7.5million investment is a big one for us and will benefit over half of our co-workers here in the UK. We have been discussing this for the past year and the thought behind our decision is pretty simple: it is the core of our values to treat people equally and decently. We believe in paying a fair wage for all co-workers regardless of how old they are and that also takes into account where they live.

Will it make employees happier?

It does however raise the question of whether this will make employees happier. Do salaries matter?

Here’s what we think: Wages have the power to make us unhappy if we perceive them to be unfair or if they are so low that we spend a lot of time and energy worrying about our finances.

Once salaries reach the point where they are fair and allow us to live comfortably, further raises do not increase happiness.

This move specifically addresses those issues and can take away much potential unhappiness for many of Ikea’s employees.

That being said, it’s also noteworthy that Ikea UK does this voluntarily and out of a genuine desire to improve their employees’ lives. This means that the move might have an actual positive effect beyond just reducing financial unhappiness because it strengthens the relationship between employees and employer, by showing that the company cares about them.

It’ll be really interesting to see how this plays out.

I love everything about this. I strongly believe that if your business can’t afford to pay the employees a living wage, then you don’t deserve to be in business.

The fact that Ikea is a long-term client of ours and that Pernille Hagild is a friend of mine who helped introduce a similar move in Ikea Denmark years ago only makes it MORE awesome :)

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How to praise yourself at work – and how NOT to

i-am-awesome

Is it OK to praise yourself at work?

Could you tell a coworker something like “Hey, let me tell you what I just did – it was AWESOME!”

Is it OK to send an email to the rest of your team to proudly share  that you found a creative solution to a tough problem?

Can you take a little time in a project meeting to tell others about that task you just completed on time and under budget?

Most people are reluctant to do that. They don’t want to seem arrogant or boastful or like they have a big head. But if you ask me, it’s perfectly OK to be proud of the good work you do AND to share that pride with others.

Just as an example, If I’ve given a speech that I felt went REALLY well (which happens all the time these days) I share that with my coworkers. I tell them what happened and what it was that worked so well.

However, self-praise can become really annoying if you do it wrong :) Here are 8 tips for praising yourself at work:

1: Only praise yourself when you’ve earned it

Just like any other praise, self-praise must be earned. You must have done something awesome before you praise yourself, otherwise it’s completely meaningless.

2: Share the praise

If you praise yourself for something you’ve done together with others, then you must include them in the praise. In that case you don’t say “I’m awesome,” you say “We’re awesome.”

3: Don’t always only praise yourself

It’s no good if you always only praise yourself and never recognize others. It’s required of all of us self-praisers that we’re especially good at acknowledging the cool things others do.

4: Admit your mistakes too

If you’re good at praising yourself when you rock, you should be the first to admit when you suck, apologize for your mistakes and be willing to learn from them and improve. People who can only see the good they do and completely overlook their own flaws  invite nothing but scorn and contempt.

In fact, why not celebrate your mistakes?

5: Praise yourself with genuine enthusiasm

When you praise yourself, do it with an honest infectious enthusiasm. It’s OK to be proud of yourself. It’s OK to have a smile on your face, a spring in your step and pride in your voice when you share your accomplishments. In fact, it will be received more positively by others than if you do it with false humility.

6: Moderation in all things

It goes without saying that anything can be overdone – including self-praise. Don’t overdo it.

7: Practice, practice, practice

Practice makes perfect. It’s banal but true. Try it, see what works and then improve from there.

8: Be ready to face scepticism

Praise is sorely lacking from many workplace – including self-praise. This may lead to scepticism and resistance from others if you start doing it. If this happens, consider carefully if the criticism is because you’ve gone too far – in which case you should listen to it – or if it’s simply that people are not used to it – in which case you should continue doing it.

Why you should praise yourself

We can see four major advantages of self-praise. First, when you share your successes, others can learn from your best practices and maybe apply them themselves.

Secondly, genuine enthusiasm is infectious. When you share something that made you happy, others become a little happier too.

Thirdly, you can inspire others to also share their victories, so the whole team becomes better at sharing what works, to the benefit of all.

And finally, if you are good at praising yourself, you’re not as dependent on receiving praise from others. As Spencer Tracy put it:

It is up to us to give ourselves recognition. If we wait for it to come from others, we feel resentful when it doesn’t, and when it does, we may well reject it.

And if all else fails, there’s always the self-praise machine that an employee at one of our clients built:

Your take

What do you think? Do you ever praise yourself at work? How do you do it? What are good ways or bad ways to do it? Write a comment, we’d love to hear your take.

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3 reasons why “Never Give Up” is really bad advice

Ever seen one of these little “inspirational” images on facebook or linkedin? They’re are all over the damn place :)

Not only is this kind of advice vapid and simplistic (and frankly it annoys the crap out of me), I believe that it might ultimately be doing us a major disservice.

Here are 3 reasons why “Never Give Up” is really bad advice.

1: Sometimes giving up is just the right thing to do

TinaKibergI’m reminded of the story of the world famous opera singer Tina Kiberg.

As a child, Tina was a competent violinist and spent her free time practicing and practicing. One day she participated in a violin contest and realized that she would never be more than a mediocre violinist and that she also enjoyed singing more. She gave up the violin, took up singing and became a leading international opera singer.

If she had seen quitting as always the wrong thing to do, she might have been stuck as a run-of-the-mill violinist. Her courage to give up is what allowed her to become a world famous opera diva.

Now try to guess what these somewhat successful people have in common: Larry Page, Sergey Brin, Tiger Woods, Reese Witherspoon, John McEnroe and John Steinbeck?

Yep, they all dropped out of Stanford.

Ever heard that “Winners never quit and quitters never win?” What nonsense!

Look at pretty  much any successful person and I bet their past is littered with things they did at one time and then gave up.

Sometimes you’ve got to stick with something, even through tough times. But sometimes you have to have the courage to give up. And you have to be open to the fact, that sometimes giving up is the right way forward.

2: Powerful psychological biases already make it hard for us to give up

There are a number of cognitive processes that systematically make it harder for us to leave existing situations and move on to something new – even when we’re miserable with the status quo.

Just off the top of my mind, here are some cognitive biases, that conspire to keep us stuck in bad situations:

The sunk cost fallacy
When you’ve spent a lot of time/money/focus on something, it becomes very hard to walk away from it. People think “I’ve invested so much in this already. If I quit, that will all have been wasted.”

The ambiguity effect and the status quo bias
People tend to select options for which the probability of a certain outcome is known, over an option for which the probability of that outcome is unknown. Example: “I know my current situation is tough, but I know what I have. If I give up, I don’t know what I will get.”

Loss aversion and the endowment effect
Once we have something, we hate to lose it. Things we don’t have yet, don’t carry the same value.

Given these cognitive biases, it’s already hard enough for us to give up, which might help explain why people stay stuck in bad jobs, bad marriages,  abusive friendships etc. We don’t need the added burden of simplistic “Never give up” advice making it even harder for us.

3: Society attaches a stigma to giving up

And yet, in the face of all this evidence to the contrary, society stigmatizes people who give up. Quitting is seen as weak, as a lack of passion or as personal failure.

As I see it, “Never give up” is easy to say and therefore gets repeated a lot. It’s still not true and that makes it tremendously bad advice.

I think it makes more sense to tell people to know why they do what they do and occasionally evaluate if it still makes sense to be doing it. There should be zero shame in giving up a fight you can’t win or in dropping a goal that no longer works for you.

Quite the opposite – it’s the sign of a strong, mature mind to have the courage to reevaluate what you’re doing and either choose to keep doing it or to choose something else.

So the next time you see someone post one of those “Never give up” type images on facebook, be sure to tell them just how wrong (and potentially harmful) that type of advice can be.

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How Toyota Gothenburg moved to a 30-hour workweek and boosted profits and customer satisfaction

The video has English subtitles. If you don’t see them, press the  subtitles button in the video.

Could a 30-hour workweek work?

It not only could, for the mechanics at Toyota Center in Gothenburg Sweden it has worked incredibly well for over 10 years, leading to happier employees, happier customers and higher growth and profits.

In this short 13-minute speech, CEO Martin Banck of Toyota Center Gothenburg explains why they made the transition from a 40-hour workweek to 30 and what the results have been.

One outcome: Their mechanics now get more work done in 30 hours a week, than other mechanics do in 40. Not only is productivity higher (which you would certainly expect), their actual total output is higher!

In fact, several workplaces in Sweden are now trying it out, including hospitals and nursing homes.

I fully realize that many people are going to dismiss this out of hand. They are stuck in the cult of overwork and totally committed to the idea that working more hours always means getting more work done, even though the research shows that permanent overwork leads to poor health and low performance.

It seems counter-intuitive that you could work fewer hours and get more done, but here’s another example:

One executive, Doug Strain, the vice chairman of ESI, a computer company in Portland Oregon, saw the link between reduced hours for some and more jobs for others. At a 1990 focus group for CEOs and managers, he volunteered the following story:

When demand for a product is down, normally a company fires some people and makes the rest work twice as hard. So we put it to a vote of everyone in the plant. We asked them what they wanted to do: layoffs for some workers or thirty-two-hour workweeks for everyone. They thought about it and decided they’d rather hold the team together. So we went down to a thirty-two-hour-a-week schedule for everyone furing a down time. We took everybody’s hours and salary down – executives too.

But Strain discovered two surprises.

First, productivity did not decline. I swear to God we get as much out of them at thirty-two hours as we did at forty. So it’s not a bad business decision. But second, when economic conditions improved, we offered them one hundred percent time again. No one wanted to go back!

Never in our wildest dreams would our managers have designed a four-day week. But it’s endured at the insistence of our employees.

We need to fundamentally change how we think about time in the workplace and Toyota Gothenburg is a great example to learn from.

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JJ Abrams wanted a happy set for Star Wars

In this video legendary screen writer Lawrence Kasdan interviews director JJ Abrams about their work on Star Wars, The Force Awakens.

At 28:10, they talk about the mood JJ Abrams wanted to create for the people working on the movie, and it sounds a lot like happiness at work to me:

When you respect each other, it’s amazing what gets done.

It sounds pollyannaish like it’s all, you know, flowers and cookies, but it’s not that at all – it’s a lot of fucking hard work.

Working on movies can be stressful and tough but Abrams realized that a happy set would not just make for a nicer experience for everyone involved, it would also result in a better movie.

Leading with happiness: How Thyra Frank created Denmark’s happiest nursing home

Thyra Frank is a leadership legend in Denmark.

In 1988 she became the leader of a troubled nursing home in Copenhagen called Lotte.

She had no budget to change things but with lots of heart, a deep commitment to helping others and a healthy dose of common sense, she turned it into one of the happiest workplaces in Denmark.

In this funny and moving speech, she shares how she created a nursing home where the staff loved to work and where the residents were healthier, happier and lived twice as long as in other nursing homes in Denmark.

Why EVERY workplace needs a culture of positive feedback – and 5 great ways to do it

No. 1Positive feedback not only feels great – it also makes us more effective.

Yet another study (this one from Harvard Business School) confirms what we all know: Receiving positive feedback makes us happier at work, less stressed and more productive. From the study:

In the study, participants… were asked to solve problems. Just before that, approximately half of the participants received an email from a coworker or friend that described a time when the participant was at his or her best.

Overwhelmingly, those who read positive statements about their past actions were more creative in their approach, more successful at problem-solving and less stressed out than their counterparts.

For instance, participants had three minutes to complete Duncker’s candle problem. Fifty-one percent who had read emails prior to the task were able to successfully complete it; only 19% of those who did not receive “best-self activation” emails were able to solve it.

Those who received praise were also significantly less stressed than the control group.

(source).

That’s significantly better performance from the group that had just received positive feedback. Why would that be?

Side note: We use praise as a common term for all positive interpersonal communication at work.

Why praise makes us happier and more productive

My best bet for what is going on is this: Praise causes positive emotions and as we know from research in positive psychology, positive emotions have what’s called a broaden-and-build effect:

The broaden-and-build theory of positive emotions suggests that positive emotions broaden one’s awareness and encourage novel, varied, and exploratory thoughts and actions. Over time, this broadened behavioral repertoire builds skills and resources.

Essentially we now know that when you experience positive emotions, your mind functions in a broader and more open way. This is also confirmed by the research performed by Teresa Amabile who found that:

If people are in a good mood on a given day, they’re more likely to have creative ideas that day, as well as the next day, even if we take into account their mood that next day.

There seems to be a cognitive process that gets set up when people are feeling good that leads to more flexible, fluent, and original thinking, and there’s actually a carryover, an incubation effect, to the next day.

This is crucial. It shows that being happy is not just about feeling good – it has a large measurable effect on our work performance in many different way. Creative thinking is just one – happy people are also more productive, more resilient, more empathetic and make better decisions – just to mention a few effects.

Praise is rare in the workplace

Giving positive feedback is an interesting way to create more happiness at work for two reasons: It’s incredibly effective (as the Harvard study showed) but it’s also sorely lacking from most workplaces.

In our recent study of what makes people unhappy at work, a lack of praise and recognition was one of the major causes. 37% of participants in our survey mentioned it as something that made them unhappy at work.

The top 3 single factors that cause bad days at work according to our study:

  1. A lack of help and support from my boss (40%)
  2. Negative coworkers (39%)
  3. Lack of praise or recognition for the work I do (37%)

Not only is a lack of praise and recognition a major cause of unhappiness at work, the top two might even be lessened if people felt more appreciated

Why praise matters: Results AND Relationships

Thumbs upOur model of what makes us happy at work says that it comes from two main factors: Results and Relationships. Or to put it another way doing great work together with great people. Here’s a video on that.

We’ve always said that praise at work is important because it shows people that they do good work, make a difference and get results. This gives us a feeling of pride that makes us very happy at work. Praise also motivates us for future tasks.

But lately we’ve realized that there is more to positive feedback: It’s also about strengthening relationships in the workplace. When you praise someone else, it shows that you actually pay attention to them and are able to see their good work and positive qualities.

One of our most fundamental psychological needs is the need for others to see and recognize the good in us. Some sociologists argue that how others see us is in fact one of the major factors that shape our identity. And we know that people who are never seen, or only seen for the bad they do, have a much higher risk of developing mental problems over time.

Resistance to praise

We’re not saying it’s easy – far from it. In many workplaces there is no tradition of positive feedback. Many managers in particular have developed a notion that praise is trivial or ineffective – they’re completely wrong, of course. I’ve even heard managers argue that “we shouldn’t praise employees – they’re just doing their jobs.” How incredibly narrow-minded.

Some workplaces even have a strong culture of negative feedback, so that good performance is met with silence but even the slightest mistakes are punished harshly.

Not only does the current absence of praise in the workplace make it harder, it might even mean that praise is initially met with scorn or suspicion.  Over time, people will come to realize that the praise is genuine and not just an attempt to butter them up for something else :)

Some people are so out of practice with positive feedback that they even find it hard to receive praise. Here’s our best tip on how to receive praise.

Fortunately, there are many companies and leaders who do get it. One example is Richard Branson who has a tremendous focus on celebrating and praising his people. He wrote that:

I have always believed that the way you treat your employees is the way they will treat your customers, and that people flourish if they’re praised.

What is good praise

Good praise is:

  • Genuine – only praise people if you mean it
  • Meaningful – praise people for something worth praising
  • Specific – tell them what was good

It’s also worth remembering that we can praise others for what they do (their work or their results) but we can also praise others for who they are, i.e. the personal qualities we see in them.

Here are some general tips on good praise:

How to praise others at work

So get praisin’. Positive feedback takes no time and costs no money and is one of the most effective ways to make a workplace happier and, apparently, more productive.

And anyone can praise anyone else. Of course bosses should praise employees, but employees can also praise each other, praise the boss or even praise customers. Why not?

We can all start with ourselves. Could you become the kind of person who is really good at seeing the good in others and telling them about it? This is a great thing to do, not just at work but also in your family, with your friends or even with random strangers on the street.

When you praise others, you don’t have to make a big production out of it. You can simply go up to someone and quietly and give them positive feedback. You can send the praise in an email, you can write it on a post-it note and stick it on their desk, you can praise people in meetings in front of their coworkers or in a million other ways.

Here are 5 specific suggestions for how to praise others at work:

  1. Our best exercise ever for positive feedback: The poncho
  2. Start an appreciation-email-chain or do it on paper
  3. Use an elephant or a similar token
  4. Celebrate those coworkers who help others
  5. #H5YR – Give praise on twitter

Could one of them work for you?

We would suggest making it a daily challenge to give at least one other person at work positive feedback of some kind. This can help develop a habit around it and get to the point where it’s something you do naturally.

And if all else fails, there’s always the self-praise machine :)

Your take

Does your workplace have a culture of positive feedback? Are you good at praising others? What’s a time that you praised someone else at work, where you could see it meant something to them? What does it do to you, when others appreciate you at work? Write a comment, we’d love to hear your take.

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