Southwestern Sales Talk
Here at The Southwestern Company, I’ve spent years reading about and observing
how people are motivated. We’ve spent countless thousands of dollars on motivational contests, incentives and awards. While my short little blog won’t fully answer the question posed above, Daniel Pink’s thought-provoking book called Drive, does. In it, Pink presents 40 years of scientific evidence that extrinsic motivators don’t work in the long run; rather, the secret to high performance is the deep human need to direct our own lives, and to learn & create new things. Contests, cash incentives–even paying your kids for good grades–work in the short run, but then can have serious negative ramifications.
To the point of this post: I ran across a bNEt blog which agrees with Pink’s findings. Click on this link: http://www.bnet.com/blog/salesmachine/why-sales-goals-and-diets-dont-work/11650?promo=808&tag=nl.e808
If you are a sales manager, a VP of sales, an artist, a business owner or someone who is just trying to lose weight, it would be wise to read and ponder Pink’s latest book. The old “carrot and stick” mentality regarding contests, work, compensation and motivation needs an overhaul.
Here is Pink describing this Drive thesis at a TED conference. Click here.
Thoughts?
well i somewhat agree, but don’t let this get to far to the company? what would we all do without sizzler!!!
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Lee McCroskey Reply:
September 1st, 2010 at 2:41 pm
Right Cristie! This is a motivator that we’d have a hard time removing! Thanks for the comment.
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Good Stuff Lee! I came across Daniel Pinks stuff through a video of his Ted Talk. (http://www.youtube.com/watch?v=rrkrvAUbU9Y)
As a young sales manager it quickly explained something that I observed yet couldn’t understand. Why weren’t my contest, which initially produced great results, having the same effect on more experience sales people? Why did a contest that was too complicated rarely achieve its purpose? I’ve yet to read the book. Yet I’m looking forward to learning and passing down his theories to the rising leaders I work with.
From the little exposure I have to his findings I’m excited about using cash/prizes only for simple tasks and as short term incentives to create excitement and inspire initial action(“if you do 10 presentations you get an ipod”). I’m also excited about realizing that those incentives create short term excitement yet in order to help people maximize their potential over the long haul I must focus on creating an environment where they feel autonomy, mastery, and pupose as Pink explains.
As you can tell I’m buying in. Im curious though- anybody disagree or know of someone out there with an opossing theory?
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Lee McCroskey Reply:
September 1st, 2010 at 2:11 pm
Julio–please read Drive and then we can discuss. I’d be interested to see if DSMs would subscribe to his thesis (and be willing to change). Thanks for reading the blog, and be sure to promote it to your students! I’m going to send your youtube video to all DSMs. Thanks.
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leeland,
just ordered the book on amazon. this will be a good read. i like your recommendations. if indeed it is all true, then i will use my prize account to buy myself really nice stuff. that motivates me!
matthew w.
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Lee McCroskey Reply:
September 1st, 2010 at 9:31 pm
please read the book…perhaps you’ve missed something….:-)
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Pink is only ½ right! You need a balance when it comes to incentives. Dan preaches “Autonomy, Mastery, and Purpose.” While those are essential components for driving intrinsic motivation, they are not alone (at least in the real world). Extrinsic rewards are needed too. Last time I looked people work for a pay check, and in some way that is an extrinsic reward. Try eliminating that and paying people in “autonomy. “ A well-structured sales contest has both short and long term benefits. The key here is the phrase “well-structured.” If creating awareness, focus, and timing are important to a business, a sales contest can be Sales Manger’s best friend for accomplishing those goals. And salespeople like them and respond positively almost every time!
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Loving it. Makes perfect sense to me. I appreciate the book recommendation. Thanks!
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Lee, aren’t the vast majority of student salespeople actually first-year dealers? If so, the short-burst incentives that aren’t designed to help foster internal habits really are the best “bang for the buck” in Southwestern’s unique world. Of course, in jobs that last more than 13 weeks, the approach needs to be quite different.
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Lee McCroskey Reply:
September 15th, 2010 at 2:38 pm
Good thoughts. I would agree with you for first year booksellers. After having read Drive, though, I think the author would contend that we are–even with the rookies–programming them to be less motivated in the long run–especially if they sell beyond one summer. Just like paying your kids for good grades; good short term surge, but they lose interest in learning….
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