Carrots and Sticks Don’t Motivate in a Thinking Environment

Motivation is a core factor for a successful business and there have been many studies around it, yet there is no definitive answer or a one size fits all solution to motivation and employee engagement. The several elements of motivation differ from person to person as well as circumstances.

A well known motivational concept is the “Carrot and Stick” approach. This analogy is about using rewards and penalties in order to obtain desired results. It refers to the old story that in order to get a donkey to move forward and pull the cart you would dangle a carrot in front of him or hit him with a stick from behind. The result is the same; the horse moves forward.

So the stick represents fear and punishment. It may produce immediate results that derive from prompt compliance. It is only useful in the short term though, as over time increasing levels of punishment would be necessary to obtain the same results and this can backfire in the form of mutiny and sabotage.

The carrot is then an incentive, which can work very well as long as the individual finds the incentive appealing. In this case, the donkey would have to like carrots, be hungry and/or have a manageable and movable load in order for the carrot to work. This is very important as the incentive must be perceived to be attractive enough.

Reward and punishment are significant motivators only if the reward is large enough or the punishment sufficiently severe. For example, management holds out a carrot, offering a week’s paid vacation to the person who has the highest production numbers. Employees will work hard to reach that target (if the vacation is really what they want), but once the contest is over, they will revert back to their previous level of effort. Or, management wields a stick, threatening some kind of punishment if employees don’t do their jobs. In those cases, people will do just enough to “stay under the radar” and avoid getting into trouble. While some carrots and sticks may work in crisis situations or as a stop-gap remedy, what they mostly do is promote nearsighted thinking, mistrust, cynicism, and a diminished capacity to innovate and create.

The carrot-and-stick approach worked well for typical tasks of the early 20th century – routine, unchallenging and highly controlled. For these tasks, where the process is straightforward and lateral thinking is not required, rewards can provide a small motivational boost without any harmful side effects.

But jobs in the 21st century have changed dramatically. They have become more complex, more interesting and more self-directed, and this is where the carrot-and-stick approach has become unstuck.

The carrot and stick approach to motivation doesn’t work, especially in work that is complex, requires creativity or involves problem solving. These traditional short-term motivators actually reduce creativity, and foster very short-term thinking at the expense of long-term results. They extinguish intrinsic motivation, diminish performance, crush creativity, crowd out good behavior, encourage cheating, shortcuts and unethical behavior, become addictive and foster short-term thinking.

Modern management techniques tell us to motivate by the carrot and stick but the carrot and stick method doesn’t work unless it’s a simple task with a simple outcome. The more complex a task the less successful the carrot and stick method becomes. Today’s problems are more complex and have unknown solutions. Rewards will narrow our focus and limit our possibilities and aren’t effective with today’s problems we see.

Lean Quote: Success Comes From Perseverance

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Great works are performed not by strength, but by perseverance." — Samuel Johnson

Success is one of those things that just about everybody wants, but not nearly as many people do what it takes to achieve. It’s the reason why so many people search for a “secret to success”; they want it, but they’re afraid of what it might take to get there. They’re looking for an easy path; a magic pill that will solve all their problems along the way and give them what they want with minimal effort.

Well, I’ve got news for you. There is no magic pill. There is no easy path. There is no secret to success. You have to work, and you have to work hard.

It is usually true that something, no matter how difficult, can be done if someone spends enough time trying to do it. If you think of any goal as requiring a finite number of steps (tasks), then each task completed is one step closer toward completion of the goal. Again, the key is often to break the steps down into what may seem to be absurdly simple tasks, but ones that you know you can complete, thereby making measurable progress and establishing forward momentum.

If you can stay with it, persevere in face of repeated failures (and learn from each one), there is very little limit to what you can accomplish.

 

Daily Lean Tips Edition #65 (976-990)

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #976 – Identify and Use Employees Strengths. 

Every person has strengths and tapping in to their unique gifts and capabilities will assist them in adding significant value to your organization whilst feeling important.  There are few things more inspiring than getting the opportunity to show how good you are and doing what you love.  Giving people these opportunities also consolidates the fact that they aren’t all faceless cogs in a large machine, but valuable people who have something positive to offer.

Lean Tip #977 – Give Room for People to Grow.

If you expect people to come in and just do their job day after day like worker bees, then you miss out on the unique opportunity to develop and coach them to greater things.  Some managers are afraid of developing their people in case they leave.  Great leaders understand that people will leave at some stage anyway, so why not position them for better things in the knowledge that they will give you great press as an inspirational leader to work for.  People who are continuing to grow and develop and know that there is value in working for you will give a far greater discretionary effort than hamsters on a wheel.

Lean Tip #978 - Remind Employees of Their Importance. 

If people feel faceless, then they will act accordingly.  However, if you can connect their role to the overall success of your business, they are more likely going to perform with pride and deliver great outcomes. It’s important that your team is aware of their impact on the company. Make sure to show how their efforts help contribute to the organization’s objectives.

Lean Tip #979 - Don’t Let Naysayers Slow You Down

Be a problem solver. There is no such thing as impossible.  If someone says “there really isn’t a way to do that”, don’t take it at face value.  There is always a way.  It just means determining the effort or cost involved.

Lean Tip #980 - Don’t Over Engineer Solutions.

KISS - Keep it Simple and Straightforward. The more you complicated the concept, the harder it will be to gain traction.  You can always add bells & whistles later.  Break features into “Must Have” and “Nice to Have” (and don’t make everything a must have!).

Lean Tip #981 - Listen for Ideas and Empower them to Act

Do you get a steady flow of ideas from your team? Are they pro-actively coming up with ideas for doing things better in your area? for your customers? Though this may take time to develop, the way to get this going is two-fold: 1) demonstrate your interest by listening to all ideas and 2) demonstrate your commitment by implementing the best ones. Take steps to turn their ideas into action as often as you can. And empower your team to act. Give them the latitude to do it themselves.

Lean Tip #982 – Smart Team Leaders Listen for Problems

Every organization has its share of problems. And the front line teams encounter many of these problems daily, up close, and directly. A smart front line leader wants to foster open and lively conversations about these problems, conversations that become more structured and focused on finding solutions. The leader gets the team together and listens to their descriptions of the problems that are identifying. They guide them into a problem solving process, teaching the steps and the tools at a pace that they can absorb. This listening strategy coaches the team to develop into effective problem solvers.

Lean Tip #983 - Teach Employees How to Manage Time and Energy Wisely.

Coach employees to fully engage in the task at hand, focus on the important rather than the urgent, avoid distractions, and create balance and renewal in the achievement of the goal. Help them learn to say no to urgent requests or terrific ideas that aren’t aligned with the important work of the team.

Lean Tip #984 - Help Employees Engage Others.

Encourage those you work with to reach out and engage others with similar goals. Remind them that goals can be created independently, but achieving them almost always requires help and support from others.

Lean Tip #985 - Help Employees Break Projects, Goals, and Work Assignments into Small Victories.

Small victories tap into motivation. Achieving is fueled by making small amounts of progress, such as accomplishing a task or solving a problem. Help those that work with you jump into an achievement cycle and experience the benefits and rewards of moving through all five steps.

Lean Tip #986 - Create an organizational habit for communications.

You know you need to communicate about policies; health and safety; benefits; and how a job should be carried out. But remember that you also need to share information about your organization—what our your objectives? How are you performing? What are your plans and prospects? How can employees help?

Lean Tip #987 - Emphasize face-to-face communications.

Although today's employees may be more tech-savvy than ever, nothing beats human interaction. Most employees want to hear news and information from their supervisors. Managers need to be trained in how to communicate, and they need to have the right tools at hand.

Lean Tip #988 - Lead and Coach Employees to Success.

Without employee performance coaching there can be no sustained employee engagement. Coaching is all about helping employees to become more effective in their roles both strategically, culturally and through performance.

Lean Tip #989 - Live Your Organization’s Core Values

Your organization’s core values should be conducive to creating a work environment that enables active employee engagement and provide employees with opportunities to demonstrate the company’s core values through their daily work.

In high performing organizations, employees and leaders regularly refer to and use their core value statements as a real time compass and positive shaper of both formal environment and work life behaviors.

Lean Tip #990 - See Your Employees as People Not as a Number

Feeling valued, confident, inspired, enthused and empowered are the key emotions that lead to employee engagement. These emotions can’t be fostered unless you build strong relationships with your employees and by seeing them as human beings.

Actively engaged employees are fully aware and secure in the knowledge that their managers really know them and care about them as human beings. Employees thrive when managers really understand and connect with them through the lenses of their personal values, goals and passions.

What Lean is Not - 10 Things That Are Not Lean

Despite Lean Thinking be around for three decades there are still surprising many misconceptions about Lean. We often hear what the definition of Lean is but this time I wanted to share what Lean is not!  Here is a list of 10 things Lean is not:

1. Lean is Not about Tools

Tools do not solve problem but rather people do. It is not about the tools it’s how they are applied. A large number of organizations have failed to produce the desired results from the direct and prescriptive application of Lean tools. The tools themselves have been proven to work in many situations. The difference must then be in how the tools were applied, their appropriateness, but not the tools themselves.

2. Lean is Not Devoid of Technology

The fundamental principle of Lean manufacturing is to design a simple manufacturing system, however, that does not mean eliminating technology. There is always room for improvement.

3. Lean is Not Only for Manufacturing

Whether it is lean manufacturing, lean office, or lean management, benefits can be realized throughout the company in inventory reduction, productivity improvement, and reduction in errors, to name a few.

4. Lean is Not about Waste Reduction

First and foremost, Lean is about value — a bigger and more inclusive concept than mere waste. Lean is a systematic way to learn to see the inefficiencies in your processes and to solve these opportunities in such a way to grow the business profitably by adding value the customer will pay for. If you want to be a successful company you will learn to empower and engage the entire organization to focus improvement on value-added work from the customer’s perspective.

5. Lean is Not about Cost Reduction

Lean is all about finding better ways to do things, so that they require less effort, less time and fewer resources. It is not about cost reduction – penny-pinching, cutting investment, taking out people – it is about finding better ways to get work done. Traditional cost cutting occurs in silos, without regard to who is affected upstream and downstream. These impacts cannot just negate the initial cost reduction from the unilateral approach, but exceed them. Lean examines each process, internal and external, finding and removing the waste, and reducing cost while maintaining the health of all constituents.

6. Lean is Not Only for the Frontline

Lean is meant to involve the whole company. It is not intended to be put into action in only one area. It is a management philosophy which should include every part of your organization. This helps promote the concept that everyone in the company is part of the team. True Lean manufacturing needs the involvement of everyone coming into contact with the company’s product and its customer.

7. Lean is Not about Less (or more with Less)

Lean manufacturing is not a head-count reduction system; instead Lean manufacturers understand employees on the shop floor know their work best. Lean manufacturers don’t want employees to work harder, or faster – they want employees to work more efficiently. Lean manufacturing focuses on improving employees, providing more value to the workforce, and, overall, establishing a dependable and stable workforce.

8. Lean is Not about No Inventory

Lean doesn’t mean ZERO inventory. Even with lean there may be a need to keep some finished goods on hand or some inventory in a supermarket. It means the right inventory at the right time at the right quantities and in the right place. Every company needs buffers, but they must be well planned and controlled. Things to consider are the demand of the customer and the time necessary to replenish the material. Implementing a Kanban system for the supermarket or finished goods helps to control the level and eliminates overproduction.

9. Lean is Not Rigid

People are often concerned that Lean efforts, including standardized work, will turn them into unthinking robots. Many Lean methods are used so that abnormalities are clearly visible and therefore can be reacted to. It is not about mindless conformity. Lean creates a baseline so improvement can occur by freeing up mental capacity from doing the routine in order to think about how the process could work better. A truly Lean culture respects people and engages them in continuous improvement.

10. Lean is Not Mean

Company executives that treat Lean as mean and use the tools to shed people, the source of the company’s health, are either delusional or do not really care about how the company performs in the long term. A Lean implementation that results in layoffs should not be considered a successful Lean implementation. 

Lean is not easy. It's not easy to understand. It's not easy to implement. And it's especially not easy to sustain. But anyone who has embarked on a so-called lean journey already knows this. Lean, in fact, is hard work and it's a challenge to keep it going.

Lean is a process. It's a culture. It's a system. And at its core, Lean seeks to optimize manufacturing processes and reduce or eliminate waste — everywhere in the value stream.

But Lean is not a quick fix and you cannot pick and choose the tools you use.   The key to ongoing success is to embed Lean as a philosophy, and a requirement in everybody’s role; ensuring the right levels of line-management responsibility and accountability for gradually implementing the various tools and techniques that support it.

Implementing Lean, or any change initiative is difficult.  If it wasn’t, everyone would be doing it, and they’re not.  The answer is that the philosophy, tools and techniques are relatively simple, the hard bit is the culture, people, training, employee acceptance and ultimately perseverance and endurance as improvement does not happen overnight.

Lean Quote: Independence

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"To be simple is to be Great." — Albert Camus

Today, we celebrate Independence Day in the US. The 4th of July is an extremely patriotic holiday where we celebrate the independence of our country. People celebrate with family and friend gatherings, barbecues, parties, games, food, fun, festivals, parades, musical events and fireworks.

Freedom is not just the natural right of every human. It is the state of mind that enables people to create the greatest and the most inspiring things. The spirit of freedom gives us the power to conquer new heights, whether it is a real mountain peak or a bold business challenge.

Lean is all about finding better ways to do things, so that they require less effort, less time and fewer resources. It is not about cost reduction – penny-pinching, cutting investment, taking out people – it is about finding better ways to get work done. It is about developing a mindset, methods and tools to identify and eliminate waste in all its forms at every opportunity. It is about freeing-up resources because you no longer need to use them.

Lean manufacturing provides your workforce the freedom that they need to own and maximize their productivity. In a Lean production plant, the "freedom to control one's work" replaces the "mind numbing stress" of mass production. Armed with the skills they need to control their environment workers have the opportunity to think actively even proactively to solve workplace problems.

Lean is more than the traditional metrics of improved efficiency, reduced costs and increased throughput. The people-centric approach to the application of Lean creates a better future, driven by empowered individuals working in teams, committed to continuous improvement. It is this culture of responsible freedom and trust that allows employees and their organization to realize the positive benefits of Lean and achieve a successful outcome.

 

Five Simple Ways to Make Your VSM A Valuable Improvement Tool

Value stream mapping is a tremendously valuable tool for improving a process. Well suited for a broad range of industries and processes. A value stream map (VSM) illustrates the flow of materials and information as a product or service moves through a process.

Value-stream mapping is a useful tool for grasping the current situation and for planning improvements. A current state value-stream map depicts the current situation as is. A future state value-stream map depicts what the value stream should look like after planned improvements have been implemented.

Creating a value stream map of the current state of your process helps you focus on areas of waste such as excess inventory, non-value-added time, and multiple operators. It’s not an easy undertaking, but making a good value stream map is a great way to help everyone involved understand and see where improvements can be made.

There is a tendency to skip mapping the current state and go directly to the future state map. But if we don’t understand the current process, we can’t really make intelligent decisions about how the future current state might or should look. A lot of companies want to skip the development of the current state map and get right into brainstorming ideas for improvement. We must reduce this impulse.

Skipping the current state map is like building a house without surveying the land or visiting the site.  Doing so can lead to a home that can’t be built and an upset homeowner.

These tips will help you develop accurate value stream maps that you can use to drive continuous improvement.

1. Define your value stream.

Identify the basic process steps before conducting your value stream map. Base the value stream map process on customer requirements. You must understand what the customer values, and use that as your starting point. Include all the activities required to bring a product from “raw materials” into the customer’s hands or provide service to a target audience. For each step in the process agree to the measure/data requirement needed for the map.

2. Capture the actual process in the actual place.

Describe the process as it operates now, not how it’s supposed to operate. Don’t be shy – visit the workplace when doing a value stream map. Walk through the process to ensure that the flow of materials and information is accurate. You will gain far more knowledge of the process if you witness the events yourself. An incorrect VSM can lead to wrong conclusions being drawn and can waste valuable time of improvement teams.

3. Make your value stream map with pencil and paper.

These days there are lots of value stream mapping software available but for first timers who may not be familiar with the software it’s just one extra thing to learn. Excellent results can be obtained through traditional pencil and paper. This helps your Value Stream Mapping team be familiar with the process and understand the level of detail that will be captured. When drawn in pencil it is easier to make changes. Just remember to stick with basic value stream mapping icons.

4. Analyze the entire value stream.

Too many Lean practitioners skip value stream analysis and jump right to identifying specific sources of waste and removing them. Unfortunately, as they note, this often results in local improvements, but rarely results in significant overall improvements in the overall value stream or in improved products for customers. To really have an impact, you need to begin by streamlining the entire value stream, and only after that, drill down into specific processes to eliminate waste. Your map may reveal a number of potential areas for improvement. Which ones will make the biggest difference in meeting customer requirements?

5. Map your improvement plan.

Create a future state map from the current state map. Your current-state map suggests where to focus your efforts, so you can draft a map that shows how value will flow through an improved process. List the actions that need to happen to improve the process. Take a step-by-step approach to putting your plan in action, then update your future state map as you implement each step.

Bonus: Remember keep your value stream map simple.

Remember that there is no perfect value stream map and you should set out to capture all the sufficient information. Keep the mapping process simple and allow for corrections. This will allow everyone to participate and be engaged in the improvement part of the process.

There is a lot to think about when undertaking value stream mapping so be sure not to rush. Create a check list of items that should be included in the map and cross them off as you go along. When you think you’ve got your map complete – validate it with your stakeholders – ensure its representative of what actually happens. Use this to iron out any problems with the map. Don’t take this stage for granted – get it wrong and you can find your improvement suggestions shot down in flames as stakeholders trash your map!

Lean Quote: Simplicity is the Key to Effective Continuous Improvement

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"To be simple is to be Great." — Ralph Waldo Emerson

Simplicity is the key to effective continuous improvement. Simplicity is the state or quality of being simple. Simplicity is not simple. If it were otherwise, it would not be the subject of discussion. Simplicity would be what is taken for granted.

According to Occam's razor, all other things being equal, the simplest theory is the most likely to be true.  A simple solution always takes less time to finish than a complex one.  So always do the simplest thing that could possibly work next. If you find something that is complex replace it with something simple. It's always faster and cheaper to replace complexity now, before you waste a lot more time on it.

In my experience with problem solving in a Lean environment it is often those simple creative solutions at the source of the problem by those who do the work that are the most effective.  Lean leaders understand this well and work to create a culture that fosters and develops the use of this ingenuity.

If your process isn’t simple, it’s going to be very expensive, not very usable, and probably not sustainable – put simply, it will fail. Whether evaluating new processes, or determining which ones to re-engineer or discard, make simplicity a key consideration. Remember this – usability drives adoptability, and simplicity is the main determinant of usability.

I think it was Leonardo da Vinci that said it best "simplicity is the ultimate sophistication."