Rewarding Innovation

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Imagine 1995
 Which encyclopedia company would be
most successful by 2010?

Option A Option B
!! Well known company !! Not known at all
!! Well paid editors and !! Volunteer writers and

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writers compile editors, content costs
content nothing
!! Strong management to !! Available for free,
manage operations, online
timing and budget
!! Sold on CD Rom &
later online
 What do you want innovation to do?

!!Increase profit, save cost, better service

!!Optimise the creativity of employees

!!Greater employee engagement

!!Improved employee performance

!!Optimise intrinsic motivation

!!Encourage long term success

Rewarding with money
Money is addictive
… it restricts intrinsic motivation
 …the focus is on the reward, not creative
problem solving

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 Reward scope

Extrinsic
!!Financially – get paid
Non
more
Synergistic
!!Politically – get better
information & listen to

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them
Synergistic
!!Socially – spend more
time with them and treat
them as superior beings
!!Intrinsic
 How successful are rewards?

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 What is the role of money

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Motivating for Innovation
 Evolution of Motivation

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 Motivation 3.0 – Building Blocks

!! Friedman’s Type A and Type B personalities

where Type A (suffered from hurry-sickness)

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typically suffered more heart disease
!! McGregor’s Theory X and Y where:
o! Theory X focused on the mediocrity of the masses,
that became the ceiling for possibility
o! Theory Y stating point had unlimited potential not
only for individuals, also for their companies.
!! Type X and Type I where Type X is motivated
by extrinsic rewards and Type I is motivated
by intrinsic rewards.
 Type I

!!Made not born

!!Almost always outperforms Type X in long

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run
!!Does not disdain money/ recognition
!!Is a renewable resource
!!Promotes greater physical and mental well
being
A model for motivation
 Model for Innovation Reward

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 Autonomy

!!Acting with choice

!!Can be autonomous and interdependant

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!!Results Only Work Environment:
o! Time
o! Task
o! Technique
o! Team
 Mastery

!!Employees need goldilocks tasks (not too

hard not too easy) to experience FLOW

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which leads to ”mastery” drive:
o! It’s a mindset
o! It is painful
o! It is an asymptote
 Purpose

!!Purpose provides activation energy for

living

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!!“The goals of management are usually
described in words like efficiency,
advantage, superior, focus, differentiation.
As important as these are, they lack the
power to rouse human hearts”. Gary Hamel
 Vision

!!Inspiring identity satisfying the sense of

purpose, significance and pride

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!!Clear strategic objectives & criteria for
innovation selection
!!Consistently communicate inspiring vision
 Voice

!!Knowledge flow increases

connection & fires up people,
helps leaders make better
decisions
!!Leverage experience, insight

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and information among
people
!!Listen – Political “reward” to
all
 Value

!!Human value - recognises that all people

want to be valued & treated with respect
!!Appreciating a person’s talent and helping
to achieve her/his potential encourages

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Vocational support

Measured
Objectives

System Structure

Rewards Process

Time Training
Change
Resources Communication
Man.
Funding Support
 It’s only about the organisation… turning
potential into realised value is a reward in
itself
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 What do you want innovation to do?

!!Increase profit, save cost, better service

!!Optimise the creativity of employees

!!Greater employee engagement

!!Improved employee performance

!!Optimise intrinsic motivation

!!Encourage long term success

 The desire to do something
because you find it deeply
satisfying and personally
challenging, inspires the highest
levels of creativity.

Theresa Amabile
Professor, Harvard University
THANK YOU!

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