Carrots and Sticks (Why They Don’t Work in a Creative Business)

In Brief: Traditional management tactics of reward and punishment fail where the business is selling creativity – businesses like this need management to encourage people’s inner motivation.

Enormous amounts of time and money are expended to motivate employees to be creative. Sadly, much of it wasted because traditional management thinking is obsessed with external rewards in the form of carrots and sticks. This external (or extrinsic) motivational approach leads to carrots in the form of higher wages and bonus payments. The sticks are demotion, performance management and even dismissal.

But there’s a problem. External motivation works well for people who are naturally driven by wealth, or are in a repetitive, process-driven job. People drawn to creative fields are often driven by a purpose higher than money – things like challenge, learning and peer recognition.

I work with some of the world’s best companies in TV, film, games and advertising. They produce creativity to order – week in, week out. So, how do they do it? And, what can they teach the rest of the business world?

My research with creative organisations shows encouraging people’s inner motivation is far more successful in delivering sustained creativity. Intrinsic motivation comes from inside. It’s a person’s abiding love for certain activities and challenges: coding a website, designing a brand, developing an idea for an online drama. This form of motivational management applies to creativity and innovation in “non-creative” industries as well. So the person might equally be searching for a new way to organise business information or manage customer relationships.

Let’s be clear. Nobody wants to be starving artist. But above a certain level of remuneration, when reasonable market rates have been met, or slightly exceeded – or when personal finance has been “taken off the table” as an issue – more cash doesn’t equal more creativity.

In summary, the sorts of people who end up in complex or creative jobs are often most creative when they are intrinsically motivated—in other words, when the work and the work are stimulating.Here’s five tips to manage for intrinsic motivation – and hence creativity:

  1. Match People and Task: Select the right people to do the right work – all the way from hiring to team formation.
  2. Create Challenging Teams: Good ideas get better through rigorous exposure to different backgrounds and skill sets.
  3. Offer Freedom within a Framework: Tell people which mountain to climb, but not how to put on their boots and put one foot in front of the other.
  4. Give Generous Support: Offer great support in terms of time allocated and investment – too stingy on either is a recipe for disaster.
  5. Show Gratitude: Let staff know senior management place great value on what they are doing by showing your face from time to time – and saying thank you.

Copyright © 2012 Greg Orme All Rights Reserved