Does TOC Understand Motivation?...© 2013 TOCICO. All rights reserved. 1 TOCICO 2014 Conference Does...

1 © 2013 TOCICO. All rights reserved.

TOCICO 2014 Conference

Does TOC Understand

Motivation?

Presented By: Kevin Kohls, President, Kohls Consulting

Date: June 11, 2014

2

© 2013 TOCICO. All rights reserved.


Undesirable Effects

• Turf war over Customers

• Arguing about money and how it should be divided up

• The TOC project starts well and has a great impact, but then stalls and begins to spiral down

• The customer seems to be losing interest over time

• They look to you to “do TOC”, and don’t want to commit resources themselves

• “Forcing” them to do TOC by looking to a champion or executive only helps for a short period of time

− “A lack of Leadership”

3



Background

• The majority of the material that will be covered comes from the book: “Drive – The Surprising Truth About What Motivates Us” by Daniel H. Pink

4



Motivation 1.0

• Implementation Date: A Long Time ago – 50,000 years

− Change or Die!

• For many companies, they realize that they are in a crisis, and they are willing to listen to others because they clearly lack the skills necessary to prevent disaster

− Alex Rogo’s situation working for UniCo in The Goal

• Leads to a basic way to Motivate change – if you don’t have a crisis, create one!

5



The Turning Point

• The crisis has passed!

• Behaviors suddenly change

• Went from a survival mode to a non-survival mode

− The motivation paradigm moves

− The way we use to do it before – Revert to reward and punishment

− Company survives, but doesn’t seem to move away from the waterfall (and may slowly inch back towards it)

− The survival/Motivation 2.0 mode becomes the paradigm

6



Motivation 2.0

• The way to improve performance, increase productivity, and encourage excellence is to reward the good and punish the bad.

• Make target, check the boxes

− REWARD – The Carrot

• Don’t make target, fail to check all the boxes

− PUNISH – The Stick

• “Tell me how you measure me, and I will tell you how I will react” – Eli Goldratt

7



The Seven Deadly Flaws

1. They can extinguish intrinsic motivation

2. They can diminish performance

3. They can crush creativity

4. They can crowd out good behavior

5. They can encourage cheating, shortcuts, and unethical behavior

6. They can become addictive

7. They can foster short term thinking

8



Where Motivation 2.0 Works

• For routine tasks, which aren’t very interesting and don’t demand much creative thinking, rewards can provide a small motivational booster shot without the harmful side effects

• Tasks that involved mechanical skill, bonuses worked as they world be expected: the higher the pay, the better the performance

9



Motivation 2.1

• With those factors considered to a degree, we can declare that we have marginally upgraded our Operating System to 2.1.

− Dress codes relaxed

− Schedules became more flexible

− Employees granted greater autonomy

− Training to help employees expand their knowledge

− These refinements repaired some weaknesses, but they amounted to a modest improvement rather than a thorough update

10



Three Incompatibility Problems

• How We Organize What We Do

• How we Think About What We Do

• How We Do What We Do

11



How We Organize What We Do

• Motivations 2.0 would dictate the following should not exist:

− Wikipedia

− Modzilla Firefox

− Linux

− Apache Web Server-Software

• There was little to no extrinsic reward or punishment

12



How We Think About What We Do

• “Too much emphasize on the economic and not enough on the human.”

− Predictably Irrational

− We don’t save enough for retirement

− We hang on to bad investments

− Give one person on a team $10

Is it worthwhile to have your Reality Trees

reflect what is Predictably Irrational?

13



How We Do What We Do – Two Views

• “Work consists mainly of simple, not particularly interesting, tasks. The only way to get people to do them is to incentivize them properly and monitor them carefully”

− Frederick Winslow Taylor

• “Work consists of whatever a body is OBLIGED to do, and that Play consists of whatever a body is not obliged to do.”

− Mark Twain

14



Intrinsic Motivation

• Study of Open Source Developers

− “enjoyment based intrinsic motivation, namely how creative a person feels when working on the project, is the strongest and most pervasive driver.”

− “the fun … of mastering the challenge of a given software problem”

− They reached the state of optimal challenge called “flow”

According to Mihály Csíkszentmihályi,

flow is completely focused motivation

15



Two Types of Work

• Algorithmic work is one in which you follow a set of established instructions (i.e., standardized work)

• Heuristic work is the opposite – since no algorithm exists, you have to experiment with possibilities and devise a novel solution

16



Motivation 3.0

• Focused on work that is heuristic, not algorithmic

• The majority (if not all) of TOC work is heuristic!

17



Motivation 3.0

• “In a non-survival situation, Daniel Pink presents the scientific evidence that true motivation comes from three elements:

• Autonomy

− The desire to direct our own lives

• Mastery

− The desire to continually improve something that matters

• Purpose

− The desire to do things in service of something larger than ourselves.”

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Starting Point

• People have to earn a living

− Baseline rewards

− If someone’s baseline rewards aren’t adequate or equitable, her focus will be on the unfairness of her situation and the anxiety of her circumstance.

− Best solution – take money off the table.

Must Make

This Much

Money to

Pursue the

Purpose

We have to establish the

Necessary Conditions

that will allow

People to Pursue the Purpose

to flourish.

19



Autonomy

• Results only Work Environment

− Just have to get their work done. How they do it, when they do it, and where they do it is up to them.

20



The 4 T’s

• Type I behavior emerges when people have autonomy over the four T’s:

− Their task

− Their time

− Their technique

− Their team

21



Mastery

• The desire to get better and better at something that matters

• From Compliance to Engagement

− Control leads to compliance; autonomy leads to engagement

• Begins to gnaw away at some of the common excuses for TOC failures

− No champion, Lack of leadership, etc.

22



The Three Laws of Mastery

• Mastery is a Mindset

• Mastery is a Pain

• Mastery is an Asymptote

23



Purpose

• Purpose provides a context for Mastery and Autonomy

• Deeply motivated people hitch their desires to a cause larger than themselves

• Motivation 3.0 companies are NOT chasing profits while trying to stay ethical and law-abiding.

− Their goal is to pursue purpose and to use profit as the catalyst rather than the objective.

Profit Purpose

24



How To….

Is this task mostly routine?

YES

NO

Can you increase the

task's challenge or

variety, make it less routine, or connect to a

larger purpose?

1. They offer praise and feedback rather

than things people

can touch or spend.

2. They provide useful information

rather than an

attempt to control.

That's

pretty

hard

Sure, I

can do

that.

Use rewards,

even "if-then"

rewards, but be sure to:

1. Offer a rationale

for why the task is necessary.

2. Acknowledge that

the task is boring.

3. Allow people to

complete the task their own way.

Concentrate on building heathy,

long-term

motivational

environment that pays people fairly and that fosters:

And remember

that those

rewards will be more

effective if:

Avoid "if then" rewards in

almost all

circumstances. a consider

unexpected, noncontingent

"now that" rewards.

Autonomy

Mastery

Purpose

25



How To:


YES

NO


task's challenge or variety, make it less

routine, or connect to a

larger purpose?

1. They offer praise and feedback rather than things people

can touch or spend.


rather than an

attempt to control.

That's pretty

hard

Sure, I can do

that.

Use rewards,

even "if-then" rewards, but be

sure to:



2. Acknowledge that the task is boring.

3. Allow people to



long-term

motivational environment that pays people fairly and that fosters:

And remember that those


effective if:


almost all



"now that" rewards.

Autonomy

Mastery

Purpose

26



How To…


YES

NO


task's challenge or variety, make it less

routine, or connect to a

larger purpose?

1. They offer praise and feedback rather than things people

can touch or spend.

2. They provide

useful information

rather than an

attempt to control.

That's pretty

hard

Sure, I can do

that.

Use rewards,

even "if-then" rewards, but be

sure to:


for why the task is

necessary.

2. Acknowledge that the task is boring.

3. Allow people to



long-term

motivational environment that

pays people fairly and that fosters:

And

remember that those

rewards will

be more effective if:


almost all



"now that" rewards.

Autonomy

Mastery

Purpose

YAWN!

27



How To:


YES

NO


task's challenge or

variety, make it less routine, or connect to a

larger purpose?

1. They offer praise and feedback rather

than things people

can touch or spend.


rather than an

attempt to control.

That's

pretty

hard

Sure, I

can do

that.

Use rewards,

even "if-then"

rewards, but be sure to:



2. Acknowledge that

the task is boring.

3. Allow people to



long-term

motivational

environment that pays people fairly and that fosters:

And remember

that those


effective if:


almost all



"now that" rewards.

Autonomy

Mastery

Purpose

28



Summary

• Understanding the basics of Motivation can help complete a paradigm shift that requires significant effort

• Motivation 3.0 may be beneficial for TOC work, whether in Consulting or in the TOC community

− A worthwhile addition to your Future Reality Tree?

− See Additional Slides after this presentation

• Using Motivation 2.0 “carrot and stick” methods in heuristic environments can be damaging

• However, Motivation 2.0 can be applied successfully to repetitive tasks that are more like “Standard Work”

• Read Drive: The Surprising Truth About What Motivates Us by Daniel Pink

29



MOTIVATION 3.0 FOR

THE TOC COMMUNITY

30



The TOC Community

More Questions than Answers

• Make members can pursue TOC without effecting their baseline

− Will the cost of an helping the TOC Community be too high?

− Realize that others will not be able to participate without jeopardizing their baseline

• Is TOC’s higher purpose clear?

− Would a non-TOC person buy into that?

• How do we create Experts in the community?

− How do we leverage the intrinsic drive of the majority of current TOC experts?

31



The 4 T’s in the TOC Community

• Autonomy

− Task

− Get people who are passionate about TOC together to accomplish a particular task

− Their time

− Have them set aside time to advance the state of the art

− Their technique

− Use what ever methods are available they think make sense – they can look for inspiration outside of TOC

− Their team

− Make sure that team members want to work together to get this done

32



The TOC Community

• Do we develop mastery?

− Or are we competing with each other and are unwilling, as a community, to work together to reach our purpose?

• Do we set aside time to learn or improve?

− Could argue that we should have working classes, where a project is developed and executed after a refresh of a set of TOC tools?

• Is our learning “painful?”

− Willing to take the time to incrementally learn more?

• Committed to improve the state of the art, allow the community to move toward the asymptote

• Learn, do, teach, improve

33



QUOTES FROM “DRIVE”

34



Setting The Goal

• “The goals of management are usually described in words like ‘efficiency,’ ‘advantage,’ ‘value,’ ‘superiority,’ ‘focus,’ and ‘differentiation.’ Important as these objectives are, they lack the power to rouse human hearts. Business leaders must find ways to infuse mundane business activities with deeper, soul-stirring ideals, such as honor, truth, love, justice, and beauty.”

− GARY HAMEL, Strategy Guru

• “Throughout my athletics career, the overall goal was always to be a better athlete than I was at that moment—whether next week, next month or next year. The improvement was the goal. The medal was simply the ultimate reward for achieving that goal.”

− SEBASTIAN COE Middle-distance runner and two-time Olympic gold medal winner

35



Quotes - Mastery

• “Figure out for yourself what you want to be really good at, know that you’ll never really satisfy yourself that you’ve made it, and accept that that’s okay.”

− ROBERT B. REICH Former U.S. Secretary of Labor

• “Try to pick a profession in which you enjoy even the most mundane, tedious parts. Then you will always be happy.”

− WILL SHORTZ Puzzle guru

36



Quotes - Autonomy

• “The ultimate freedom for creative groups is the freedom to experiment with new ideas. Some skeptics insist that innovation is expensive. In the long run, innovation is cheap. Mediocrity is expensive— and autonomy can be the antidote.”

− TOM KELLEY General Manager, IDEO

• “As an entrepreneur, I’m blessed with 100% autonomy over task, time, technique and team. Here’s the thing: If I maintain that autonomy, I fail. I fail to ship. I fail to excel. I fail to focus. I inevitably end up either with no product or a product the market rejects. The art of the art is picking your limits. That’s the autonomy I most cherish. The freedom to pick my boundaries.”

− SETH GODIN, Author of Tribes, Purple Cow, and the world’s most popular marketing blog

37



Quotes - Purpose

• “I believe wholeheartedly that a new form of capitalism is emerging. More stakeholders (customers, employees, shareholders, and the larger community) want their businesses to . . . have a purpose bigger than their product.”

− MATS LEDERHAUSEN Investor and former McDonald’s executive

• “In a curious way, age is simpler than youth, for it has so many fewer options.”

−STANLEY KUNITZ Former U.S. poet laureate

38



Quotes - Purpose

• “The value of a life can be measured by one’s ability to affect the destiny of one less advantaged. Since death is an absolute certainty for everyone, the important variable is the quality of life one leads between the times of birth and death.”

− BILL STRICKLAND Founder of the Manchester Craftsmen’s Guild, and MacArthur “genius award” winner

• “One cannot lead a life that is truly excellent without feeling that one belongs to something greater and more permanent than oneself.”

− MIHALY CSIKSZENTMIHALYI

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