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Golden Oldies: Vested Self-interest In Action

December 12th, 2016 by Miki Saxon

It’s amazing to me, but looking back over more than a decade of writing I find posts that still impress, with information that is as useful now as when it was written. Golden Oldies is a collection of what I consider some of the best posts during that time.

To truly understand this post, you need to click the link and read the original explanation of VSI. VSI isn’t particularly original, but it is rarely called that — people prefer nicer or more professional sounding euphemisms. And that’s OK; I just prefer to opt for clarity and simplicity — which is why I’m considered too blunt.

Read other Golden Oldies here.

vsi-successTuesday I shared my version of VSI, the main ingredient in motivational sauce, and today I want to tell you a story about how it works.

Earlier this year I was working with a client, Jim, on various management approaches, such as offering good feedback and open sharing of all information, i.e., not dribbling it out over multiple requests, that he wanted to integrate into the company culture. During the conversation he asked me “What can I do to open the minds of some of my managers?”

Unfortunately, there is really nothing you can do to force a person to change the way they think, but there is much you can do to encourage it. I honestly believe that the fastest, as well as the most potent, way to encourage change is good old VSI.

I used to believe that people had to perceive the need for change before they could change, but based on experience I’ve found that if they see benefits to themselves from doing things differently they will start moving in that direction and the results can be almost surreal.

Jim had a manager who was known for making his people come to him constantly to get the information necessary to do the work they were assigned. His attitude/actions resulted in higher-than-normal turnover in his group, but he insisted that he wasn’t doing anything and people could get the information at any time, so there was no correlation.

Using VSI, Jim and I worked out a two-prong approach to change his behavior.

  • 20% of his annual bonus was tied to reducing his group’s turnover by 30% (which would bring it in line with the company as a whole); and
  • Jim started doing to the manager as he did to his group by forcing him to come and ask and then dribbling out the information he needed to meet his targets.

Part of the manager’s reaction was straightforward—he grumbled a bit about the retention bonus. But the surreal part was in his reaction to the information plug—nothing, not a word or an action to acknowledge what was going on.

However, he must have noticed, because within days of it starting he was giving more complete information to his people.

Not all at once and not very graciously, but he loosened his hold on the information flow, so did Jim. If the manager backtracked Jim tightened up and the manager learned that to get he had to give.

At first, his people were cautious, not really trusting the new openness, but after about a month the results started and after six weeks they took off like a rocket—productivity and retention zoomed north, while grumbling and discontent headed south and on into oblivion.

But the surreal part is that, in spite of his people commenting publicly on how differently he was handling assignments, meetings, etc., to this day the manager claims that nothing changed and certainly not him.

Image credit: Street Sign Generator

Vested Self-interest In Action

November 5th, 2009 by Miki Saxon

vsi-successTuesday I shared my version of VSI, the main ingredient in motivational sauce, and today I want to tell you a story about how it works.

Earlier this year I was working with a client, Jim, on various management approaches, such as offering good feedback and open sharing of all information, i.e., not dribbling it out over multiple requests, that he wanted to integrate into the company culture. During the conversation he asked me “What can I do to open the minds of some of my managers?”

Unfortunately, there is really nothing you can do to force a person to change the way they think, but there is much you can do to encourage it. I honestly believe that the fastest, as well as the most potent, way to encourage change is good old VSI.

I used to believe that people had to perceive the need for change before they could change, but based on experience I’ve found that if they see benefits to themselves from doing things differently they will start moving in that direction and the results can be almost surreal.

Jim had a manager who was known for making his people come to him constantly to get the information necessary to do the work they were assigned. His attitude/actions resulted in higher-than-normal turnover in his group, but he insisted that he wasn’t doing anything and people could get the information at any time, so there was no correlation.

Using VSI, Jim and I worked out a two-prong approach to change his behavior.

  • 20% of his annual bonus was tied to reducing his group’s turnover by 30% (which would bring it in line with the company as a whole); and
  • Jim started doing to the manager as he did to his group by forcing him to come and ask and then dribbling out the information he needed to meet his targets.

Part of the manager’s reaction was straightforward—he grumbled a bit about the retention bonus. But the surreal part was in his reaction to the information plug—nothing, not a word or an action to acknowledge what was going on.

However, he must have noticed, because within days of it starting he was giving more complete information to his people.

Not all at once and not very graciously, but he loosened his hold on the information flow, so did Jim. If the manager backtracked Jim tightened up and the manager learned that to get he had to give.

At first, his people were cautious, not really trusting the new openness, but after about a month the results started and after six weeks they took off like a rocket—productivity and retention zoomed north, while grumbling and discontent headed south and on into oblivion.

But the surreal part is that, in spite of his people commenting publicly on how differently he was handling assignments, meetings, etc., to this day the manager claims that nothing changed and certainly not him.

Image credit: Street Sign Generator

Ducks in a Row: Motivation and Trust

March 12th, 2019 by Miki Saxon

https://www.flickr.com/photos/aucklandphotonews/8252061970/

Yesterday’s Oldie was a reminder that there are very view motivators that can beat VSI (vested self-interest) when it comes to engaging your team.

Some people respond to money, but many more respond to intangible rewards.

How do you know what works?

How can you tailor motivators individually for each person?

I’ve heard from bosses at every level that they’re already stretched, they need to focus on the deliverables and their team and just don’t have the time to deal with individuals.

Which is laughable, since the team is comprised of individuals and the bosses job is to engage and motivate them, so the deliverables are delivered on time.

Great managers have no fear of using one of the most efficient approaches, i.e., ask your current team and each new hire.

Don’t suggest or use multiple choice, just ask.

  • What makes you eager to come to work?
  • If you could choose just one thing, other than compensation, that would light your work fire what would if be?

Don’t ask in a group situation if you want real answers, honest answers.

In fact, don’t ask in person, since you may not be able to control your initial reaction. If that happens it will break trust with that person and it is unlikely to be rebuilt any time soon.

Remember, this isn’t about what motivates you, nor is it any business of yours to judge what motivates someone else.

Hand the questions out in hard copy with each person’s name already on it.

Tell them you are using hardcopy to avoid the chance of accidental leaks and promise their responses won’t be shared with anybody.

It is extremely important that you don’t share them, even anonymously, with anyone, especially inside the company. Doing so for any reason, with anyone is betrayal, pure and simple.

Explain that because all humans are different you want to understand what really matters to each of them and that once you do you’ll do your best to provide it.

Finally, don’t kid yourself, if you don’t honor your promise it is betrayal, the equivalent to sleeping around when in a committed relationship.

If you don’t know how to be faithful, you’re better off just forgetting about this post.

Image credit: Auckland Photo News

Golden Oldies: The Number One, World-Beating, Best Motivator

March 11th, 2019 by Miki Saxon

Poking through 11+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

Engagement is way down, jobs are plentiful, turnover is way up, and managers aren’t just searching for solutions.

No, what they really want to find is a silver bullet; a Harry Potter magic wand they can wave to promote engagement, hike productivity, juice creativity and sustain the whole thing.

But as we all know, silver bullets and magic wands are in extremely short supply.

That said, VSI, as explained below, comes pretty close.

Read other Golden Oldies here.

How do you lead/influence/motivate/get/force others to move in the direction you choose or achieve a goal, large or small, that you set? That question is the basis for yards of books and megabytes of content, but in spite of all that’s already been written I thought I’d add my bit to the total.

After all, responding to this question is almost a right of passage in the land of leadership and motivation.

So here’s my two-word answer: vested self-interest (VSI).

Over the years, I’ve found vested self-interest to be not only the most powerful people motivator around, but also one of the least expensive, since the cost is mainly from the effort to learn what it is for each person.

And the idea must have merit when you consider that a Sudanese cell phone billionaire is using it to incentivize African heads of state to act responsibly.

In that case, the incentive was money, but that’s not always the case. If it were, then companies wouldn’t lose talent to other companies offering the same or even lower pay.

It’s an error to always assume that dollars will do it, or that what turns on one, turns on all. Hot buttons are as individual as your people are and don’t always involve tangibles.

As a manager, it’s up to you to discover each of your people’s hot buttons, i.e., what really turns them on, and then find a way to satisfy it in return for what you want in performance, innovation, etc.

Taking the time to learn what the buttons are allows you to power your team as never before, which, in turn, should give you the ability to satisfy your own VSI.

Remembering that generalities are always dangerous, here are some of the most common hot buttons

    • public recognition – not just for big things, but for the small, everyday wins that fill most people’s working lives;
    • strokes – a few words here, a compliment there, doesn’t take much time, but be warned, people aren’t stupid, if your comments are lip-service only they will know and respond accordingly;
    • giving back – supported or encouraged volunteer programs, leave day banks, etc.;
    • making a difference – internally and/or externally; and
    • growing/stretching – the opportunity to do something new, learn new skills, etc.

Obviously, money is still a motivator, but it’s not always big bucks, it’s more that the amount is relevant to the accomplishment and logical relative to the company’s circumstances.

And it doesn’t need to be “new” money, it can be a different way to cut a current pie. For example, I get many queries from senior execs asking for exotic approaches and detailed how-to’s for implementing cultural and other intangible changes that often require encouraging (and at times, coercing) their managerial staff into actually doing them.

The most successful method I’ve found is as simple as one, two, three.

    1. Carefully define, in a quantifiable manner, what you want done (not “increase retention,” but “reduce turnover X% by [date]”).
    2. Include these well-quantified goals in the managers’ annual objectives. (This is not a variation of MBO.)
    3. Make it clear to your managers that they will be evaluated on these goals and that the evaluation will impact their annual reviews and compensation.

Vested self-interest should do the rest

And as any parent can tell you, VSI works great on kids, too — or anyone, for that matter.

Image credit: Quotes Everlasting

Golden Oldie: Don’t Buy The Lies Of Silicon Valley

January 28th, 2019 by Miki Saxon

https://www.flickr.com/photos/elektorlabs/16192054960/

Poking through 11+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

Last week we looked at millennial burnout and it reminded me of a post I did a couple of years ago on how it’s often driven by Silicon Valley pundits who preach the need for relentless hustle, which, to put it politely, is a crock.

Read other Golden Oldies here.

This is a short post, because it contains links to the two biggest Silicon Valley lies.

I realize that lies aren’t nearly the big deal they used to be, but when the source of those lies is the MAP (mindset, attitude, philosophy™) prevalent in a critical piece of US infrastructure the lies take on a life of their own.

They carry so much credibility that their insidious spread is guaranteed.

The first lie is that success requires constant hustle. Whether starting a company or working in an existing one, hustle means giving up everything else — family, friends, recreation, relaxation, whatever, no exceptions — and work 24/7/365 (more if you can figure out how).

But for some, “hustle” is just a euphemism for extreme workaholism. Gary Vaynerchuk, a.k.a. Gary Vee, an entrepreneur and angel investor who has 1.5 million Twitter followers and a string of best-selling books with titles like “Crush It!,” tells his acolytes they should be working 18 hours a day. Every day. No vacations, no going on dates, no watching TV. “If you want bling bling, if you want to buy the jets?” he asks in one of his motivational speeches. “Work. That’s how you get it.”

Which, as anyone familiar with productivity research knows, is a pile of poop.

The truth is that much of the extra effort these entrepreneurs and their employees are putting in is pointless anyway. Working beyond 56 hours in a week adds little productivity, according to a 2014 report by the Stanford economist John Pencavel. But the point may be less about productivity than about demonstrating commitment and team spirit.

The second lie is that Silicon Valley is special. But Silicon Valley’s special is completely self-serving.

Silicon Valley has a lot of self-interested reasons for preferring to maintain a facade that its culture is special, and that its industry is more innovative, virtuous and productive than every other industry. It serves as a great recruiting tool as the region competes for talent with other industries and areas. It allows insiders to maintain outsize control of their companies. And it is a way to prevent regulators from coming in and regulating Silicon Valley to the extent that it might otherwise seek to do.

Stop drinking the Valley kool-aid. Facebook doesn’t love you, it loves your identifiable personal data, which is slices, dices and sells to all comers.

Google jettisoned its “don’t be evil” motto when it got in the way of revenue generation.

Read the articles.

Share them, tweet them and stop ruining your own life by believing them.

Image credit: Elektor Labs

Golden Oldies: Management Messes: Pain and Threats

November 19th, 2018 by Miki Saxon

Poking through 11+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

For all the promise of technology people are still people and they respond as such. Further, I doubt that’s going to change within the lifetime of anyone currently breathing.

(Note: Although the “Chat with Miki” box no longer exists, I typically reply to email within 24 hours.)

Read other Golden Oldies here.

“Clint” used the ‘Chat with Miki” box in the right-hand frame to ask me this question.

Have you ever heard this?  “People usually won’t change until the pain of NOT changing exceeds the pain of changing.”

Since this is a pretty common idea I thought I’d share my ideas with everybody.

I’ve heard this and many variations of it over the years, especially when applied to the workplace where it becomes a form of management by threat

For example, if your company or boss decides on a change and people’s jobs hinge on that change, they will change.

The problem is that they will also disengage at some level, maybe a little, but sometimes a lot. Not always obviously, but over time it will show in lower productivity, less creativity and, eventually, higher turnover.

Clint then asked if I thought that vested self-interest could be used instead of increasing the pain.

The answer is absolutely.

VSI is the perfect opposite to increased pain.

By rethinking a desired action, such as change, and presenting it in terms of its value to employees you can trip the VSI switch—but not if it’s a con.

As I’ve said a million times, people are not stupid; if the desired action is not really in their best interests there is nothing you can do that will convince them. VSI will still kick in, but the result will be resume polishing, lots of LinkedIn action and conversations with recruiters.

Clint decided that by using vested self-interest he could reduce the pain of changing. He plans to connect his organization’s goals to his people’s goals, which will effectively reduce the pain and increase the likelihood that they will do what he needs them to do—painlessly.

Handy little item my chat box. Try it, I’m usually here.

Image credit: nkzs on sxc.hu

Ducks in a Row: Greed Hiring is Good

March 13th, 2018 by Miki Saxon

Way back in 2007 I described what I call the number one best motivator.

Over the years, I’ve found vested self-interest (VSI) to be not only the most powerful people motivator around (…) And the idea must have merit when you consider that a Sudanese cell phone billionaire is using it to incentivize African heads of State to act responsibly.

So, instead of hiring for diversity and the social good, why not hire for greed, pure and simple.

You won’t even need to rationalize your decision, since the data makes it a no-brainer.

Researchers from the Massachusetts Institute of Technology and George Washington University calculated that going from an all-male or all-female team to one with equal representation of men and women correlated with a revenue gain of 41%.

41%! That ain’t chicken feed.

Moreover, the phenomenon is global.

A study of 1,000 companies across 12 countries by McKinsey & Co. showed that those in the top quartile for gender diversity were 21% more likely to have above-average profitability than companies at the bottom of the pile. If companies had a greater balance in ethnicities at work, they would on average perform 33% better than those that don’t. Other studies that McKinsey did in previous years (paywall) yielded similar conclusions.

It seems obvious that women would understand women customers better than men do, but if you doubt it Home Depot is an excellent case study.

Trish Mueller joined HD and became CMO a few years later. She recognized that the data collection showing most purchasers were male was incorrect and the company set out to disversify their market.

In 2013, the Home Depot’s core executive team had a strategy meeting about how the brand could appeal to more customers and markets—like women—and expand their product range. There were two women executives in the room: Mueller and Cara Kinzey (Senior Vice President, Technology). Trish and Cara suggested that the brand’s product range should be as wide as its name. Home Depot included the word “home,” after all, and could expand into product categories like cookware, small appliances, and kitchen accessories.

“Cara and I came at it from a women’s perspective,” Trish says, “without it being that overt.”

They decided to test their ideas on the next Black Friday sale.

They gave their merchants a broad mandate: “If it’s something you can conceive of using in your home, let’s have a conversation about it.”

Some of the home appliances and cookware options they tested proved so successful that they’re now kept long-term inside every store. The Home Depot also had some rather unexpected hits during their Black Friday sales, like a giant fluffy teddy bear that sold for $29.99. “Who would’ve ever thought to see that at Home Depot?,” Mueller says. “But we were sold out in ten minutes, the first year we carried them.”

But is the effort paying off consistently beyond Black Friday?

Unlike smaller rival Lowe’s, Home Depot isn’t aggressively adding to its store base. In fact, it has opened just one new location in the U.S. market since 2013. Yet the retailer is beating Lowe’s in overall revenue growth thanks to its stronger customer traffic.

Would HD have had the savvy to go after the women’s market without Mueller’s and Kinzey’s viewpoint? Unlikely for guys who thought pink power tools were the answer.

Has it translated to more diverse hiring? It has in Canada (I couldn’t find US stats).

So, for all you guys who have no time for moral imperatives, turn your VSI up to high and do it for greed.

Image credit: Pexels and MotleyFool

Don’t Buy The Lies Of Silicon Valley

September 5th, 2017 by Miki Saxon

Silicon ValleyThis is a short post, because it contains links to the two biggest Silicon Valley lies.

I realize that lies aren’t nearly the big deal they used to be, but when the source of those lies is the MAP (mindset, attitude, philosophy™) prevalent in a critical piece of US infrastructure the lies take on a life of their own.

They carry so much credibility that their insidious spread is guaranteed.

The first lie is that success requires constant hustle. Whether starting a company or working in an existing one, hustle means giving up everything else — family, friends, recreation, relaxation, whatever, no exceptions — and work 24/7/365 (more if you can figure out how).

But for some, “hustle” is just a euphemism for extreme workaholism. Gary Vaynerchuk, a.k.a. Gary Vee, an entrepreneur and angel investor who has 1.5 million Twitter followers and a string of best-selling books with titles like “Crush It!,” tells his acolytes they should be working 18 hours a day. Every day. No vacations, no going on dates, no watching TV. “If you want bling bling, if you want to buy the jets?” he asks in one of his motivational speeches. “Work. That’s how you get it.”

Which, as anyone familiar with productivity research knows, is a pile of poop.

The truth is that much of the extra effort these entrepreneurs and their employees are putting in is pointless anyway. Working beyond 56 hours in a week adds little productivity, according to a 2014 report by the Stanford economist John Pencavel. But the point may be less about productivity than about demonstrating commitment and team spirit.

The second lie is that Silicon Valley is special. But Silicon Valley’s special is completely self-serving.

Silicon Valley has a lot of self-interested reasons for preferring to maintain a facade that its culture is special, and that its industry is more innovative, virtuous and productive than every other industry. It serves as a great recruiting tool as the region competes for talent with other industries and areas. It allows insiders to maintain outsize control of their companies. And it is a way to prevent regulators from coming in and regulating Silicon Valley to the extent that it might otherwise seek to do.

Stop drinking the Valley kool-aid. Facebook doesn’t love you, it loves your identifiable personal data, which is slices, dices and sells to all comers. Google jettisoned its “don’t be evil” motto when it got in the way of revenue generation.

Read the articles.

Share them, tweet them and stop ruining your own life by believing them.

Image credit: Elektor Labs

Ducks in a Row: Same Questions/Same Answers

August 25th, 2015 by Miki Saxon

https://www.flickr.com/photos/m-a-r-t-i-n/12103831755

Different generations, but bosses are asking the same questions.

How do I implement cultural and other intangible changes and, more importantly, encourage (or, if necessary, coerce) their adoption?

I responded nine years ago and the answer hasn’t really changed.

The most successful method is as simple as one, two, three.

  1. Carefully define, in a quantifiable manner, what you want done (not “increase retention,” but “reduce turnover by X%”).
  2. Include these well quantified goals in the managers’ annual objectives.
  3. Make it clear to your managers that they will be evaluated on these goals and that the evaluation will impact their annual reviews and compensation.

Vested self-interest will do the rest.

Flickr image credit: Martin Cooper

Ducks in a Row: the Value of Interest

September 23rd, 2014 by Miki Saxon

https://www.flickr.com/photos/bevgoodwin/8747172182

When I’m writing for a client I lose track of time; I don’t even notice when someone walks into my office.

It’s called being “in the zone” and it happens when you are seriously interested and deeply engaged with what you are doing.

Mihaly Csikszentmihalyi, a psychologist at the Claremont Graduate University, has been studying this latter phenomenon for decades. He calls it flow: the experience we have when we’re “in the zone.” During a flow state, people are fully absorbed and highly focused; they lose themselves in the activity.

It’s a proven fact that self-control is mentally fatiguing, but new research shows that high interest results in lower mental fatigue.

Bosses who use contests and gamification to drive interest are missing a good understanding of today’s workforce—and it’s not about age or even self-interest.

People get interested because a project is meaningful and they can see how their work contributes to the larger picture.

Even on minor projects they can see how what they did helped achieve the outcome.

No busy work; no incomplete information and no doing [whatever] for the sake of doing it.

In short, if you want to generate interest in a task it must be meaningful and provide an opportunity for the worker to add value.

Flickr image credit: Beverley Goodwin

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