Creative Reaction

In The “Psychic Benefits” of Nonprofit Work Are Overrated, Dan Pallotta rails against the idea of working at a significant discount because it’s the “right thing to do”. I can’t remember the last time a business post made me smile so much.

He makes an excellent case that making a lot of money and donating it to a cause is far better for everyone than taking a small or huge pay cut and working for the cause.

Making a difference in this world is not defined along the lines of profitability or non-profitability. It is not an either/or choice; it is both/and.

Much has been written about the transformation from an industrial/manufacturing economy to one of knowledge-based work, and yet many of our management practices cling to the past, especially in the way employees are motivated and compensated. In this TED Video, Daniel Pink discusses the “mismatch between what science knows and what business does”.

As it turns out, financial incentives are OK for mechanical and methodical tasks, but for for jobs where creativity and cognitive skills are required, such “extrinsic” motivators can actually dull creativity. For jobs where there are no clear methods and where every task requires a creative approach, the only worthwhile motivations are those that are intrinsic. Unless your employees understand their purpose, and work for a cause larger than themselves, it doesn’t matter how much money you pay for their talent; you won’t get their best.

(And boy did I grin when Pink mentioned “Results-Only Work Environments” and Google’s “20% Time”, both of which have been covered here at Creative Reaction.)

Managers and owners, your business’ survival depends upon you watching this 18:36 presentation. Schedule a time and a place to watch it. You’ll be glad you did.