Carrot and stick management systems can be effective if what you want is a defined system that reliably gets X amount of work for Y amount of reward…AND you’re willing to eat the cost of employee turnover when they jump ship because X amount of work is rewarded at a Y+1 level elsewhere.
What is clear and compelling in study after study (read Drive by or Peak for more) is that if you want a company culture that goes above and beyond, that truly creates something special, it requires far more than carrot and stick. People are not oxen who are reliably motivated by the carrot/stick with no dreams of their own. The human ability to create, connect, strive for excellence – it’s within each of us. Tap into that and you tap into excellence.
How? Focus less on money and more on meaning. That isn’t a license to underpay. High performers still want to be rewarded as such. AND tap instead into their desire for autonomy, mastery, meaning, purpose. Create a system that sets them free to do great work. Get curious with them instead of commanding. Challenge and support them toward greatness rather than micromanaging them into mediocrity.
We all get the team and system we deserve. What have you designed, leader, and how do you need to rethink it?
BUILT TO LEAD 