If you want the business, find the spark!

I have a friend of mine who likes to use the term “spark” to describe the emotional connection between two people beginning a romantic relationship. Most of us can recall a situation in our past where all the “specifications” for a new relationship were perfectly met, but where the chemistry between the two people just wasn’t strong enough to create an authentic romantic connection.

I’d like to suggest that, as we are talking about a business opportunity with a client or prospect, some of the same emotional wiring that creates a romantic spark is going to be very influential in whether or not we find the energy to support working together.

People have said, and I completely agree, that most people make decisions based on emotions, and then rearrange the facts and logic path to support a decision they’ve already made on an emotional basis.

Here are two questions to consider as we are talking with a client or prospect about a new project they are considering:

Can we feel the emotion they are carrying for the project?

Can we find a complementary emotion in both our client and ourselves that could become the chemistry that drives our working together on that project and others to come?

The answers to these questions could help us understand how committed our contact is to this business outcome.   Often, someone may have reached out to us to discuss a project which, frankly, they don’t care a flip about.   They’re only engaging us to satisfy a commitment to someone else to “look into it”.  That’s a long way from “get ‘er done!”  On their side of the equation, there is no “spark”.   That could be a good sign that this project is a nonstarter. Wish them well, pick up your hat, and walk (maybe run!) for the door.

On the other hand, if we believe that the value proposition for the project is genuinely compelling for this company, then we need to find someone else in the organization to become our champion, someone who has the spark (maybe even created the spark) and who provide the emotional energy for the project to move forward.   Continue the conversation and probe to find that person.  If you can engage that person in the conversation, your chances for success become infinitely better.

Epilogue:  The chances for creating a winning value proposition and a long term client relationship get infinitely better if we can find the emotional “spark” for both the project at hand and the on-going consultant-client relationship between us.

 

How are you showing up as an active listener? Five traps to avoid.

How often do you show up for a meeting or a discussion, only to find your partner in a complete state of disarray, heavily distracted by telephones, email, social media, other employees stopping in to interject a thought or start a new conversation, etc.  You get the picture!  Or worse yet, they show up unengaged, unprepared, and don’t seem to be understanding or caring about what you’re telling them.

Through our research of several behaviors that create high levels of trust and credibility, active listening has emerged as the most critical behavior (by a significant margin) in the eyes of our respondents. With that in mind, what can we as consultants and subject matter experts do to sharpen those critical listening skills?

Researchers in effective communications have coined the term “immediacy in communications” to describe the set of behaviors which either lay the framework for an effective dialogue, or sow the seeds of disaster.  Those researchers define immediacy as the way we signal our motivation to communicate freely, and the positive feelings we impart to our partner. These behaviors, both verbally and nonverbally, communicate that we are warm, involved, interested, and available to communicate.  Verbal immediacy factors include how we use pronouns – are we using I and you, or we and us; our use of formal or informal manners of addressing our partners that are comfortable and appropriate; how open we are to sharing personal information and creating vulnerability; our use of compliments to open the communication paths. Nonverbal behaviors might involve cues such as touch, eye contact, distance and personal space, smiling, tone of voice.  Most of our verbal and nonverbal behaviors tend to be instinctual.  We need to develop strong awareness of our own behaviors and the cues our partners are giving us , to sense how we are behaving and how it’s hitting our partner.

So, what are the traps, and how can we avoid them?

Here is a list of five behavior traps which work against our immediacy, and ultimately diminish the quality of  our listening and our understanding of our partner.  For each trap, we offer some ideas about how to avoid them.

Walking in without a true sense of engagement and honest motivation to help:  Your partner will quickly sense if you’re not truly interested and engaged, and will begin defending themselves against your disinterest.  Before the meeting, try to motivate yourself by finding some element of the situation, your relationship and past history with them, or a thread from a previous conversation that you can pick up on and pursue with interest.

Failing to align with the where they are coming from:   Examples might include failing to pick up on emotions that are working in them at the time, their point of view on the topic at hand, cultural differences and primary language.  Before the conversation, do some homework about them if you don’t know them well, what you might anticipate to be their emotional state, some appropriate due diligence on their business, their role, their background (LinkedIn is great for this).  You should walk in knowing what’s reasonable to know and ready to get to the meat of the discussion.

Failing to provide real-time feedback that lets them know you are really listening and have processed what they’ve told you:  Examples might be shallow feedback that either indicates you weren’t listening, or weren’t comprehending what they were trying to tell you.  Try “reframing” or summarizing in your own words not only what they said, but how they feel about it, what the impact is likely on them, and other comments that indicate that you thought through the implications of what they’ve told you.

Making it about you:    A common faux pas is interjecting a personal story, even if relevant, which breaks the flow of what your partner is trying to tell you. It comes across as if you have hijacked the discussion. Instead, show empathy and maybe an indication that you’ve had a similar experience, but avoid providing so much detail that you break the flow of their story.

Being too eager to prescribe ideas for how to fix the problem at hand:  We often listen just enough to find a common story in our repertoire and immediately go there, complete with detailed instructions about just how to solve their problem. Metaphorically this would be the same as the doctor prescribing brain surgery when we walk in complaining of a headache. We haven’t earned the right, yet, to go to prescribing action.  One common tip is, when you sense that you’re about to make a recommendation for action, shut that down, and substitute another question. Dig in on your discovery questions, until you are sure you understand the issue and they have validated that you understand it. When you get there, then you can invite them to move into brainstorming and action planning if they really want it.  When the active listening is really working, they often discover the path forward for themselves, through the dialogue.  Before you go to action planning, ask permission and validate that they are ready and wanting to go there.

Epilogue:

Active listening is not easy work, but it’s critical to build the relationship and the communications path which is critical to earning our partners’ trust and credibility.

Come to important conversations caring, committed, and prepared, and listen twice as much as you talk.

How are your clients grading you on your authenticity?

blacksmith-700In a recurring theme in our current election cycle, both major candidates are suffering low poll scores with their levels of authenticity, trust and transparency.

In the early 1990’s, I remember there was a university professor and consultant that my company used quite a bit to put on visionary discussions of what was then was called client – server computing. The fellow was quite charming, an accomplished speaker, and delivered a 100% flawless presentation. The explanations were crisp, the jokes were funny, and he never missed a beat. Customers loved it!

That all sounded great, until I took a second customer to one of his sessions. It was then that I realized that the sessions were 100% scripted. Every word and every joke came out sounding exactly like the first time I had heard him. I suppose that if I had only had to hear him once, that wouldn’t have been a problem. But when I realized how completely rote it was, he dropped down several pegs in my estimation of him and how much he really understood the topic.  One theory: If he knew it that well, he would not have had to so meticulously script it and rehearse it. Second theory (and the one I think is true): He did know the material, but he valued the flawless performance of the “show” higher than his personal authenticity. In his defense, because these were one-time marketing events, the sales people attending with their clients were really the ones bearing the burden for the longer term relationship. Maybe he made the right choice as a showman, but very few clients would have stood for that in someone they wanted to consider an advisor.

I think that scientists and technologists often fall into the same trap. They feel that their role as an expert compels them to be correct at all times and for their “performance” to be “flawless”.

I’m thinking that the only way someone could accomplish both goals, would be to operate well within their margins of safety, to take no bold or outrageous positions, and therefore to deny their client the very best of their thinking. Mihaly Csikszentmihalyi, the author of the concept of “flow” (Csikszentmihalyi 2013 – a great TED talk) describes the phenomenon as occurring when you are performing at the very limit of your capabilities. It seems to me that that it would be very difficult to be operating at the edge, if we were afraid of straying just over the edge, and making a mistake or an overstep.

Being married to an expectation of 100% correctness makes us less willing to risk our ideas and statements being scrutinized and found to be faulty. That in turn prevents us from being fully present, fully engaged, and fully authentic. Clients expect our full engagement. Unless we have a terrible track record for making really bad mistakes, they will forgive the occasional error, because they know they are getting our best efforts and every bit of our creativity.

Said another way, we have to let go of our desire for perfection to deliver our best game and be considered real and authentic.

Experienced consultants know that the best customer relationships are often forged in the heat of resolving a missed expectation. For sure, when a mistake happens, there is a short term loss of trust and credibility.   What rebuilds, and ultimately deepens, client trust, is how the consultant owns the situation, how they react to it, and how they resolve it.  (In most cases, there is plenty of blame to go around, and the client knows it.) The client learns that regardless of who made the mistake, the consultant will do whatever it takes and bring whatever resource is necessary to resolve the issue at hand.

Three tips to becoming more authentic:

Don’t confuse being smart or “right” with being trusted.

Give your clients your very best, maybe risking a mistake or overstep, but in the process earning their trust and loyalty.

Immediately own (or gracefully share) the inevitable mistakes and resolve them without excessive focus on whose fault it is.

Epilogue:

In the words of Peter Block, “In the end, it is our authenticity, the way we manage ourselves, and our connection to our clients that is our methodology, our marketing strategy, and the fruit of our labor.” (Block 2011 )

Great Reads and Views:

Block, P. (2011 ). Flawless consulting: a guide to getting your expertise used. San Francisco, Pfeiffer, an imprint of Wiley.

Csikszentmihalyi, M. (2013). Creativity, Innovation & Managing “Flow”. TED talk

Drive Discovery from Curiosity

Think about the last friendship you formed.

I am willing to bet that you didn’t spend a lot of time in that first conversation stressing to them what a good friend you could be, how you could bring value to the friendship in a variety of ways, how the friendship would benefit them, and what average ROI they would get by engaging in a friendship with you.

Sounds like a pretty silly way to start a friendship, doesn’t it? And yet consultants often worry that their first meeting has to convey a strong value proposition, differentiate them from any possible competitors, and lead to a series of next steps resulting in the prospect engaging them!  … and all of that in a short 30 minute meeting or email.

Instead, what you really did with a potential friend was to use conversation and questions to understand them, their hometown, what college they attended, what sports teams they follow, their hobbies, how many kids they have and what ages, and so on and so on…  If all went well, you found enough common ground to continue and deepen the sharing.  And as you framed your questions, you probably didn’t know the answers when you asked them.

Granted, a new business relationship doesn’t start out exactly like a personal friendship, but a lot of the key ingredients are exactly the same. People respond to genuine interest and curiosity about what makes them and their business unique and special. They will be pleased if you have a broad enough background to have an interesting conversation with them.  They’ll notice how well you react to their answers, anticipate the business challenges they are facing,  explore the implications of those challenges,  and inquire about what possible paths forward they are contemplating.  They will feel more like they are talking with an industry colleague and not someone who wants to open their wallet and take money out of it.

In the video which follows, I interview Kriss Kirchhoff, an experienced Angel Investor and mentor to CEO’s across the US.   Previously, Kriss was the President of ACCO Brands and a Vice President and General Manager for the Hewlett Packard Company.  In those roles, Kriss ran businesses ranging in size from $700M to over $1B.  He has formed dozens of high value relationships with consultants, and he has led teams of consultants.   Kriss shares what he believes are the key behaviors that consultants must demonstrate to build the trust and credibility inherent in a high value partnership.

Here are three important behaviors which Kriss discusses in our interview:

Demonstrate genuine curiosity with your questions.   Clients judge us by the questions we ask.  Your questions can be informed by your homework, but they should be relevant to the last thing the client said.   That said, it’s OK to come in with a prepared list of questions if relevant, and clearly supported by your preparation.  (E.g. “John, I noticed in your recent article in Forbes, that you focused on the impact of globalization on your strategy…”    Don’t lead the witness.   A lot of us think we’re being clever by “telling”, using leading questions where we already know the answer.  Most people sense that lack of authenticity in a heartbeat, instinctively resist, and we’ve taken a hit in our level of trust and credibility.

Connect the Dots.  Bring your experience and wisdom to the conversation.  Be a continuing learner, and take the time to reflect on the key things you’ve learned and how to convey them with real stories.  If you’re paying attention, you are building a library of powerful stories.  The story you capture today may win you an engagement ten years from now.   In the middle of an energetic dialogue, those stories will connect with something your client has said, and you will bring them up in context.  The client will realize that you are seasoned and can relate to their world.  That feeling from the client is worth a thousand PowerPoint slides.

Trust the discovery conversation, the questions you ask, and the connections you make to showcase your value.    We often overthink the best way to demonstrate our unique value.  If we’ve done a good job with preparation, asking curious questions, and providing informed reaction to customer comments, then we can usually trust that there will an opportunity to bridge into value.  (“You know, John, we had just such a problem come up in our recent engagement with Acme Inc. and here’s how we addressed it…”

I hope you enjoyed the interview with Kriss.  If you skipped over it, here’s your second chance to benefit from his experience and wisdom.  (An Interview with Kriss Kirchhoff)

The DNA of a Powerful Question

DNA_960“The processes used by a coach, a counselor, a psychotherapist or a guru are similar:  they build the awareness and responsibility of the client.”  (John Whitmore)

I was in my manager Bob’s office, and we were going toe to toe.  I don’t even remember the specific issue we were discussing, but I had very firm ideas about the direction I wanted to take, and he was being equally clear that he didn’t think my plan was a good one.  Finally, he stopped, looked me right in the eye, and asked, “How willing are you to completely own the outcome?”  And then he went silent and waited.

That moment was probably about 30 years ago. Yet I remember it in HD quality – where we were standing in his office, and the look on his face as he leveled that question at me.  It is as clear as if it was yesterday. With nine words, Bob had asked me a powerful question and was waiting for my response.

Powerful questions get their name from the idea that they evoke powerful levels of thought and produce significant clarity for the client. In that moment, Bob had let go of his strong advocacy for his approach, and just asked me how committed I was to my approach and the resulting business impact. Instead of granting permission, he was challenging me to think into the future, project the implications of my proposed path, and take full responsibility for my bet.  To use Whitmore’s language, he was asking me to rethink my proposal (awareness) and then take full responsibility for it.

Here are what I have learned to be the genetic markers of an exceptional question:

It demands thought and reflection on the part of the receiver.

The best questions don’t have easy answers. They challenge the listener to go deep into their own knowledge, beliefs, values, and emotions, to respond. When we ask a powerful question, we have given our client an opportunity to become more deeply aware of all of those elements, and to process how they interact relative to the goal.  Almost inevitably, that process sets off reflection and integration, will lead the client to make a connection they had not previously made.   We are giving our clients a huge gift.

It is built on the foundation of a solid understanding of the big picture, critical issues, and overarching sense of purpose.

The relevance and depth of your question reveals to your client that you have done your homework and have taken in all that they told you previously.  You cared enough to understand them.   You’ve built on that background to frame a relevant question whose answer will deepen your mutual understanding of the issue at hand.  Not only are you gathering information, but you are strengthening the level of trust that binds you and your client.

It is not driven by the consultant’s agenda.

Too often, we use questions which are leading, and which can be received as a form of persuasion through cross-examination.  People are amazingly perceptive in picking up loaded questions. Two negative results occur.  First, the client instinctively puts up barriers based on the level of distrust that the question engenders. The relationship between advisor and client moves in a negative direction. Secondly, the chances of having any really new or helpful insight are greatly diminished when the barriers have been thrown up.

It is short and simply framed.

Brevity comes from clarity and preparedness.  When we’re not well prepared, we are crafting the question on the fly.  The resulting question has multiple components, wanders, back tracks and is dumped on the plate in a heap.  Great coaches like to talk about effective dialogue as a dance.  With commitment, presence, understanding, curiosity and experience, we are able to sense the rhythm of the conversation and help our partner move to where the music is taking them.

Epilogue:

Give your clients the gift of clarity and commitment by asking them powerful questions.

Great Reads: 

Whitmore, J. (2002). Coaching for Performance: GROWing People, Performance, and Purpose. London, Nicholas Brealey Publishing.

 

 

Serve Before You Sell!

ConsultingThis month’s tip:  Add value to to your team or client before worrying about how you will be compensated for that service.  Said another way, advise and serve as if you are independently wealthy.

It was winter in 1974 and I was on temporary duty in Kansas City, attending an advanced technical school for Air Force communications engineers. A buddy and I had noticed that Hewlett-Packard created a series of very impressive technical notes that would be helpful to the technicians that we supervised. We decided to go to the local HP office and raid their shelves of all the relevant notes we could find. While we were there, we met the local district manager, and talked to him about how HP salesmen plied their craft. Mind you, that was 42 years ago, but I still remember vividly something that district manager said. He told a story about how HP field engineers often helped their customers use a competitor’s piece of equipment to make complicated technical measurements. Those field engineers didn’t earn a dime off of that service they gave their clients. But it was part of the ethic of HP at the time, that you helped your customer with whatever task was in front of them – whether or not that act of service benefited you in any way. Of course, customers did repay it, in loyalty and future business.  (HP was the industry leader in electronic instrumentation for many decades.)  But in that moment, the service to the customer was selfless and came ahead of any idea of compensation.

That conversation made a huge impression on me and it was a key influence in my deciding later in my career to join HP as one of those field engineers.

Jagdish Sheth,  in his book, Clients for Life (Jagdish Sheth 2000) coins a term he calls “selfless independence”.  He says this: “It is a foundational attribute for anyone who aspires to become a trusted adviser to their clients.  Without selfless independence, you lack substance as a client adviser – you’re just another expert for hire. With it, you are able to inspire both respect and loyalty from your clients.”

What about the independence piece of the equation?

When we are independent, we take the position that is in the best interests of the client. Sometimes, that is not what the client wants. They may have seized on another approach which they love, but which we know from our expertise is not the right solution for them. We are much more persuasive in that discussion if we are courageous in our approach.  Patrick Lencioni, in Getting Naked (Lencioni 2010), talks about the debilitating impact on our effectiveness when we fear losing the business.  Someone who is independently wealthy does not fear the loss of an individual deal. Think about the last negotiation you were in.  When you knew you had another alternative, you could be more assertive in the bargaining, and your counterpart in the negotiation always seemed to sense that.

Acting from a spirit of financial independence frees us to “give away the business”, to consult first, and sell later.  Demonstrating that generosity (both in tangible and intangible ways) builds trust and loyalty.  By going to service first, we are demonstrating what we know and what we can do in an immediately valuable way.  We are building credibility in our expertise.

Epilogue:

“Consulting is a relationship business. A special product may make you competitive. Differentiated services may make you distinct. But only carefully crafted relationships will create a breakthrough firm.”  (Weiss 2003)

Three great reads: 

Jagdish Sheth, A. S. (2000). Clients for Life: how great professionals develop breakthrough relationships. New York, Simon and Schuster.

Lencioni, P. (2010). Getting Naked, a business fable about shedding the three fears that sabotage client loyalty. San Francisco, Jossey-Bass.

Weiss, A. (2003). Million Dollar Consulting: The professional’s guide to growing a practice. New York, McGraw-Hill.

 

 

Lead with Empathy

empathyFamous marketing executive Bruce Turkel tells the story about a magnificent piece of business that was won, and then lost, in the space of an hour. It was a really, really, big opportunity ….

And it was lost because of a key question they failed to ask.

The presentation of the conceptual proposal was perfect. The client was thrilled with the advertising concepts. They gushed on and on about how well they liked the assigned account managers and the creative team. The customer was leading the discussion about next steps and asking how quickly the contracts could be signed and the work begun.

As high fives were being exchanged all around, the president of the client firm complimented Turkel and his team on their level of competence and commitment. And then it happened….

In a moment of self-effacing humor, Turkel minimized his role on the team, saying that the team was so strong, there was practically nothing for him to do. (Cue the sound of a ship crashing on the rocks…) The deal died on the spot.

What Turkel and the team had missed was that this client had recently completed a project where the consulting firm they chose completely failed in executing their vision. In the client’s eyes, the consulting executives had not provided the committed hands-on leadership the project required. It foundered and ultimately failed miserably.

What Turkel and team failed to understand that the client’s team had been emotionally devastated by the previous failure. His single ill-considered remark brought all those ugly emotions back, in high definition and Dolby sound.

Said another way, they failed to understand the emotional issue and show empathy to the client.

They hadn’t made the critical connection because they had not asked enough questions and uncovered what the client felt, where they were emotionally. Instead Turkel’s team went to their own comfort zone, by emphasizing the technical details of their proposal, impressive as they were.

The rational side of the client was very impressed. But, on the emotional side, Turkel’s remark inflamed them. And that was the deal breaker.

What could have turned this sad story into a success story?

Emotional intelligence expert Steven Stein defines empathy as the “ability to be aware of, understand, and appreciate the feelings and thoughts of others.”

Empathetic consultants are able to read others’ emotions and describe them accurately from an objective, non-judgmental perspective…   even if they personally don’t agree with the emotions. As a result, the client knows their emotions have been heard and understood.

Here are five tips to help you lead with empathy and get the back-story you need to gain your client’s trust:

1.  Remember that most major decisions are driven by emotions and not the facts of the matter.

I watched a military service make a $25 million bad vendor selection because the decision board had an emotionally charged fear of software risk. The wrong company won because they had understood that fear and they played to it. Game over.

2.  Respect the rider, but convince the elephant. 

Psychologist Jonathan Haidt describes a model that argues that humans have two sides:  1) An emotional/automatic/irrational side (the elephant), and 2) An analytical/controlled/rational side (its rider). Authors Chip and Dan Heath, in their book, “Switch”, build on Haidt’s theory and describe it this way: “Perched atop the Elephant, the Rider holds the reins and seems to be the leader.  But the Rider’s control is precarious because the Rider is so small relative to the Elephant.  Anytime the six-ton Elephant and the Rider disagree about which direction to go, the Rider is going to lose.  He’s completely overmatched. “

3.  Ask “excavating questions”

Turkel’s team might have asked questions about previous successful and unsuccessful projects. How did the project leadership make a difference in the success or failure of the project? That question alone would have probably prevented the disastrous outcome they experienced.

4.  Talk about you and your advantages only after you have talked about the client, their needs, their dreams, and their fears.

Of course, they need to know about what you bring to the table. But usually the “elephant” (emotions) will run away with the “rider” (logic and facts) because it is so big and powerful.

5.  Put your own emotions and beliefs on hold.

Our own emotional reactions have a huge impact on what we see, how we use our beliefs to acknowledge and interpret it, and the conclusions that we form. It’s hard to get into our clients’ shoes, if all of our inputs are so heavily filtered by what we feel and believe.

Don’t make it about you!  Keep the focus on the client, and what they care deeply about.

Lead with empathy!

 

 

 

 

Holding your own! Using Assertiveness to communicate with power and get your ideas heard.

Have you ever struggled to deal with a colleague or friend who is either aggressive or insistent that their approach is the only correct one? Did you consider either being passive, or maybe going over the top to be just as aggressive as they are? Modern research with over 4,800 individuals shows Assertiveness too be among the top five personal attributes most highly correlated to success in business and personal life. This program will make you aware of the habits and behaviors which foster strong communication and high levels of team work, and enhance your personal leadership brand. The program will also alert you to habits which inhibit others from really hearing you and supporting your critical ideas.

This is a link to a Slide Share version of the presentation I made to an HR.com webinar on Jan 22, 2014

 

Business schools discover the power of EQ in leadership development

This is a very readable journal article on how a business school invested in a program to explore and develop the emotional intelligence of its students. It is well researched and its reference list would be a great place to start your own research into the history and contributions of emotional intelligence.

My take: While the study focused on a business school, its report and its supporting research have significant implications for all business and organizational leaders.

First finding of the study:  In this study, they were able to see a significant improvement in EQ competencies after a two year program of assessment and development

Second key item of interest, the writers referenced a study in which employers ranked the core MBA program objective of “knowledge of fundamental business concepts” only 12th out of 15 dimensions explored. Those organizations identified “courses that aided in the development of interpersonal skills” as the most significant shortcoming of traditional MBA programs.

Abstract: Over the past two decades an escalating interest in the construct of emotional intelligence (EI) has made its way into the popular press, professional press, and peer reviewed journals. Not surprisingly, an interest in EI is also gaining ground in academic settings (Parker, Duffy, Wood, Bond & Hogan, 2002; Parker, Hogan, Eastabrook, Oke & Wood, 2006; Parker, Saklofske, Wood & Eastabrook, 2005). Several major longitudinal studies have laid a sound theoretical foundation supporting the development of EI competencies as a component of the MBA curriculum (Boyatzis, Stubbs & Taylor, 2002; Boyatzis & Saatcioglu, 2008). This paper will describe why and how one MBA program took theory to practice and piloted the integration of content designed to develop competencies related to emotional intelligence into its curriculum. It will also review the results of an applied multi-year study that measured the results of the curriculum pilot. The study was conducted using one of the most widely used instruments for measuring emotional intelligence, the Bar-On Emotional Quotient Inventory (Bar-On, 1997), to identify significant changes between the beginning and the end of the program in the aggregate measures of emotional intelligence competencies.

Click on the image of the report title page to read the entire report.

 

 

Are we really coin operated?

As a recovering sales manager, I have always laughed at the proposition that “sales people are coin operated”.  Notice that I said I laughed, not that I didn’t agree.

What would you say if I told you that quite a body of research is telling us that “extrinsic motivation” (e.g. bonuses and commissions, carrots and sticks) actually makes performance worse, not better.  On the other hand, “intrinsic motivation” (I work because I love what I do) is the more durable motivator, especially in the 21st century.

I’m reading Dan Pink’s book, Drive, and I recommend it highly. If you’d like a compelling TED video on this same topic, done by Pink in 2009, check out this YouTube video.