I hope you find comfort in my latest Talent Management blog post where I explain why we shouldn’t fear change. In this post, I also debunk the myths that surround it and discuss ways you can achieve meaningful change in yourself and in others.

Related posts:

1. Why Wall Street won’t ever change their spending ways I’m going to get right to the point.  I have...
2. Employees have spoken…fear and failed leadership prove disastrous in safety Guest post by Judy Agnew. Finally, we hear the truth!...
3. Engaging Employees: Do You Have What it Takes? In my latest Talent Management Blog, I define employee engagement...

What prompted this blog was an article in Bloomberg News titled, “Wall Street Mulls Partial Pay Freeze” by Jeffery McCracken and Christine Harper.  They talk about the fact that revenues in the investment-banking business have been so bad that they might have to resort to eliminating the practice of boosting pay automatically each year.  They quote Joseph Sorrentino of Steven Hall & Partners, an executive-compensation consultancy who said, “Pay increases have been traditionally automatic because there are traditionally very long hours in terms of the amount of work and this is another way to try to boost their morale and signify that they’re a strong part of the firm and that they’re appreciated.”  This quote cracks me up because it shows the almost total lack of understanding of the laws of behavior.

I can assure you that Mr. Sorrentino has no data showing that the way these investment banking firms structure bonuses improves junior bankers’ performance, retention or morale.  It is naïve to think that you can treat people poorly day to day, give them money at the end of the year and think that will create the feeling that “they’re a strong part of the firm and that they’re appreciated.”

The reason these firms can get away with wasting millions of compensation dollars is because practically every company in the industry is using the same poor uninformed compensation practices.  Therefore, no firm has an advantage or disadvantage.  The customer pays the freight.

If these firms ever get to a point where they must operate in a more sound way financially, I can suggest several things.

1. Every problem cannot be solved with money, even on Wall Street.  What causes people to quit and go to another company is more about the way they are managed than the money they make.  If employees are treated poorly, they will leave for a dollar more.  If they are treated well, it will take a lot more to hire them away.  Make no mistake, loyalty cannot be bought.  Big bonuses have often helped a disaffected employee start a competitive company or retire early.




2. Bonuses that are not earned, more often than not, do not strengthen productive behavior because that is not the contingency involved in receiving the bonus.  While upper management believes that annual bonuses increase loyalty and performance, they do neither because they don’t have to be loyal or productive to receive one.  They have to do just enough to stay on the payroll.  Of course management doesn’t believe this because if they did, they would make immediate changes where nothing would be automatic that was not individually earned.  A system where employees knew the personal accomplishments they had to achieve to earn the money would be far superior and less costly.




3. Forget what rival firms do.  Focus on promoting to management only those who have good social skills and an understanding of the science of behavior.  Pinpoint the behaviors and results that are valuable and generously reinforce those behaviors and reward those who produce the results.  That way, the only thing that executives will have to “mull over” will be how to spend the money that is left over.

Related posts:

1. AIG gives Bonuses a bad name Everybody is talking about AIG again. The conversation is about...
2. What was Google thinking! The headline read “Google Gives All Employees Surprise $1,000 Cash...
3. A Dozen Ways to Weather the Economic Storm   Guest Blogger: Darnell Lattal Nowadays you can’t turn on...

Related posts:

1. Good Intentions, Bad Effects Guest post by Darnell Lattal Throughout the past several years,...
2. Lessons from BP -with Judy Agnew CEBViews recently posted an article Learning from BP...
3. Workplace Tips from Brad Pitt Well, not exactly but I did have the privilege of...

Watch video…

Related posts:

1. For Women Only: When is talking about yourself helpful to your career? While reading an article from the Huffington Post by Marcia...
2. Raises Are Forever The modern organization wastes more time and money in the...
3. Tough May Have Got You Here But It Ain’t Gonna Get You There Where do you fall on the management spectrum; kick butt...

The primary mistake people make in making resolutions is that they think that changing some personal behavior or habit is simply a matter of will power or “making up your mind.”  It is as if people who fail don’t grunt enough, don’t have enough resolve (how do you get more of that?), are not really serious (How can you increase your “really seriousness?).

The real mistake lies in not planning or managing consequences well.  It is easy to resolve to quit drinking, lose weight, start exercising, etc. but it is harder to plan consequences that you will actually be able to self-administer to get the behavior change you seek.  Therefore, the resolution is nothing more than a goal, and goals aren’t reached by grunting, wishing or talking; they are reached when you have consequences that support the behavior change.

Here are some practical suggestions to help you be successful should you want to carry on the New Year’s Resolution tradition.

1. Plan consequences for behavior change. Allow yourself to do things that you like contingent on a certain accomplishment. In other words, if you resolve to do some project in your house, commit to getting it done before you sit down to watch your favorite TV program.
2. Set very small sub-goals. The more, the better.  If weight loss is a target, set a goal of no more than one pound a week.  The trick is to set a goal that you are almost sure to reach.  Less than a pound is ok if you can reliably measure it on your scales.  Smoke one cigarette less per day; walk around the block.  No goal can be too small at the beginning.
3. Post a graph of your progress at home or in the office where everyone can see it.  Set the parameters so that progress is easy to see.  Tell family and co-workers what you are doing.  Use social media to show results.  Put the graph on Facebook, Twitter, etc. The more people who see your progress will reinforce you for it and in return you will be more motivated to keep at it.
4. Celebrate every success (every goal accomplishment), no matter how small.  Reward yourself.  Publicize your small accomplishments.  “I am one step closer to finishing that big report.”
5. In addition to rewards that cost money (buying something for yourself, dinner at a fancy restaurant, a movie, some new software for your computer, an iPad, etc.) think of rewards that have a low cost or have no financial cost.  Use the “IF I do X, then I will do Y” contingency.  Or, “when I do X, then I will do Y.”  If your resolution is to clean the attic, basement or garage, simply say, “When I put something in the trash, I will watch T.V, answer my email, play a computer game or go to McDonalds for breakfast.”  You will be surprised how quickly you finish the task with this simple start as long as you maintain the contingency “When…then.”

By the way don’t do it in reverse which most people are tempted to do, that is, “I will work in the attic after I come home from McDonalds.”  I call that bribery since it reinforces the wrong behavior.  You get the reward for promising to do the behavior, not for actually doing it.  Not a good plan.

Most failures to reach personal or work goals result from poor goal setting and from failure to plan positive reinforcers for success.  If you start the New Year with small goals and a multitude of reinforcement, 2012 may be your best year yet!

Related posts:

1. Just do it! Guest post by Christina Simms Understanding why we procrastinate and...
2. Survey Says? Surveys can uncover a lot, but it’s what you do...
3. “Let Me Speak to Your Supervisor” Guest post by John Green Does customer service have to...

I believe that everyone who drives should keep his/her eyes on the road at all times and not attend to anything in or out of the car that would distract him or her. However, it ain’t going to happen. (Even in space the astronauts looked out the window.)

Cell phones are addictive in that they provide the user with a rate of reinforcement that is higher than almost anything else in the car. Therefore they are clearly the most dangerous. If we have just eaten we will not be likely to eat or drink in the car but if we have just talked to a friend while at the restaurant, it does not reduce the probability that we will not talk on the cell phone when we get back in the car. It may even increase it because we may remember something to tell the friend that we forgot when talking in the restaurant.

Employees at ADI responded to the NTSB’s recent national plea to ban cell phone use by making a pledge to stop using the phone while driving. It is a worthy goal. Only a week later, and none has been able to stop. They all said they are doing better but no one has stopped. Is it possible to develop a habit of driving without using a cell phone? It is, but it will take time, probably many weeks, even though they are not doing it under threat of getting a ticket or losing their license. It is a volunteer activity.

Why is it that the Department of Transportation only thinks of punishing those who do something wrong or dangerous as a way to stop the behavior? The first reason is that they want to give the public the impression that they are awake at the switch. The press release about “banning all cell phones” gives the appearance of taking the problem serious. Second, the statement by the chairman, Deborah Hersman that “We’re not here to win a popularity contest” makes it sound even more serious. Tough talk is often rewarded by the press and the public. Such speeches are make-work, “full of sound and fury signifying nothing.” In spite of appearing to be the right thing, they are the wrong thing to do for at least three reasons:

First, fining or even taking a license is a negative but uncertain consequence. No one using a cell phone thinks that s/he will get caught. When an uncertain negative consequence comes face to face with the positive immediate consequence of talking to someone about a problem, a girlfriend or boyfriend, an appointment, a dinner date, etc., the positive immediate consequence will win every time.

Second, the behavior of avoiding getting caught makes the use of the cell phone even more dangerous.

Third, how many times does the Department of Transportation have to come out with knee-jerk reactions and solutions with little evidence that they understand anything about human behavior until the public completely ignores their “warnings?” Think about compliance to speed limit signs.

I am bothered by drivers on the phone like everyone else. If a car is moving slowly in traffic or moving erratically, it angers me to see on passing that they are on the cellphone. However, I don’t want a legal or governmental solution since I know it won’t work. I also know that if a legal solution is advanced, it will never be repealed even though it doesn’t work.

I believe, as I have said before, that because of the positive immediate consequences provided by cell phone use, the only solution is a technological one. Make cell phones so that they will not work as long as the phone is moving. The sooner we come to that realization and put resources and time on that solution and less on pronouncements that won’t work, the sooner we will begin saving lives.

Related posts:

1. Breaking News: Texting while driving is dangerous. Duh! Anyone who understands anything about behavior knows that the latest...
2. Texting & Driving Debate Puts Spotlight on Behavior-Based Safety This graphic video on the dangers of texting and driving has...
3. Lifeguard on duty: Swim at Your Own Risk! Typically when we read headlines that relate to personal safety,...

Related posts:

1. End-of-year bonuses; some parting words As the end-of-year bonus season approaches, remember the words of...
2. Thinking About Cutting Bonuses? I wrote earlier on this blog about the fact that...
3. Need we say more about the impact of bonuses… Is it possible to have 374 different bonus and compensation...

Related posts:

1. Safety in the News: Why we are still “Safe by Accident” Guest post by Don Nielsen Two recent articles, one in...
2. Overreliance on Antecedents: Do Policies, Memos, and Safety Signage Work? You can walk into any work environment where safety is...
3. Discipline and Safety: what you need to know before you act While discipline is important under the right conditions, it can...

 

Effective performance is not something that only lucky managers can achieve from their employees. It’s also not something you’re born with. For those who find themselves challenged to get desired performance from direct reports, it’s likely they have fallen victim to some common traps. Here are two traps that failing managers can fall into:  

Using ineffective management practices: In management, just because something doesn’t work doesn’t mean managers won’t continue to use it. So many practices have been institutionalized through the years that it’s no wonder managers think nothing of adopting them. Ranking is one such practice whose intention is to drive motivation to be the best but in reality it devalues the performance of all those who aren’t at the top. What managers don’t understand is that, among other things, it creates internal competition and doesn’t motivate the ones on the bottom to improve or those at the top to reach higher. Unfortunately, it often creates enmity between those ranked higher and those rated lower. The reality is that if you aren’t at the top, or close to it, this process becomes demotivating as they realize they will never be able to perform better than those above them. 

Another common, and unintentional practice, is when managers use the ‘you did a good job but’ approach when providing feedback or attempting to correct poor performance. When managers provide reinforcement for the things employees did right but then end it on a note of what more they can improve, employees forget the good and focus only on what they did wrong. If this is done often, employees hate to hear the good because they know some criticism is likely to follow. They also begin to suspect that the only reason you say something good is to set them up for bad news.

A frequent mistake in correcting behavior is to “sandwich” the problem behavior between two compliments. Managers are often taught that saying something positive before mentioning the problem makes the employee more responsive to the negative and by ending with a positive it protects the person’s ego. What it does, in fact, is to dilute the message at best and provide positive reinforcement for the problem behavior at worst. Break this bad management practice. It may make you feel better about the correcting but has a very unreliable impact on the performer.

These methods even if done with the best of intentions are demotivating and usually result in employees doing only what they are required to do.

Unintentionally rewarding negative behavior: When managers don’t understand positive reinforcement as a scientific concept many problems usually occur in an effort to build a positive culture. For example, the worst advice you could ever give or get is: Always be positive! While it sounds good and many people strive to eliminate negativism from their relationships, we know that if you are positive at the wrong time, you will get more of the wrong behavior. Behavior that you want more of needs positive reinforcement; Behavior that you don’t want, does not.

A question to ask that will help you avoid rewarding negative behavior is, “What does the person want?” If bad behavior gets him what he wants, you can count on the fact that he will do it more often. For example, I have heard people say that “All he wants to do is argue.” If that is true, then arguing with him will only increase argumentative behavior. Positive reinforcement is a powerful interpersonal tool. Use it well and it will result in healthy, productive relationships. Use it poorly and it will make you and those you work with miserable, unhappy and unproductive. 

To create a productive and happy work group, you must:

1. Know the reinforcers of those who work with you – everyone is different
2. Establish yourself as a positive reinforcer – pair yourself with the delivery of meaningful reinforcers
3. Reinforce incremental improvement – the smaller, the better
4. Don’t stop – continue as long as you want performance

Related posts:

1. What You Might Not Know, but Should, About the Effective Use of Measurement Measurement gets a bad rap!  In business, measurement can be...
2. Performance Management Isn’t What You Think You may not want to miss my latest Talent Management...
3. A reversal of fortunes: Who is Really Appraised By the Performance Appraisal process? Now, I know I’ve said this before but, just because...

Related posts:

1. Lifeguard on duty: Swim at Your Own Risk! Typically when we read headlines that relate to personal safety,...
2. Employees have spoken…fear and failed leadership prove disastrous in safety Guest post by Judy Agnew. Finally, we hear the truth!...
3. Do Relationships Matter in Safety? When it comes to safety, organizations need more than just...