The best creativity arises from intrinsically motivated individuals – those who are doing something for the satisfaction within the task itself or for the satisfaction from the completion of a task. Intrinsic motivation is driven by curiosity and the desire to make a difference. Extrinsic motivation is driven by the temptation of a carrot or the fear from a stick.

Intrinsic motivation is sabotaged by rewards. It’s almost that simple.

With rewards, the focus is on the reward not on the desire to complete a task or to make a difference. People start to do the tasks for the reward rather than the satisfaction of doing something of value.

Old Psychology demonstrated that animals do things for reward or to get away from pain (the carrot or stick approach). Old Psychology holds when the animal has survival needs unsatisfied (the hungry cat can be tempted but the satisfied cat can’t) and the theory of manipulation by carrot or stick holds true (Skinner’s original work with animals actually only worked when they were frightened and half-starved).

New Psychology is different. Creation Companies are those that are becoming more and more tuned in to New Psychology and New Thinking Principles. A Creation Company will recognise that when a human being has most of their basic needs met, carrot and stick is not as effective as Old Psychology predicts (thought those that would say they are ‘hungry’ for success can be tempted by the really big rewards).

But as Alfie Kohn and now Daniel Pink have affirmed there is very little evidence that rewards improve human performance in the long-term. And the main reason is that extrinsic motivators sabotage intrinsic motivation. Linking pay to performance therefore sabotages long-term performance. The Banking Crisis is an example that partially arose when companies, and individuals, focussed on the carrots and not on the service. Lose sight of the task and you lose sight of the potential disastrous consequences of doing things for the wrong reasons. Thus it is not therefore a question of moderating the bonus culture,  with legislation if necessary, (as Politicians and Business Leaders would suggest) rather the question is how can we abolish the bonus culture.

We need to find mechanisms whereby people benefit from the long-term success of an organisation rather than rewarded for the profit they make on behalf of the company as individuals. We need this for companies to become Creation Companies that produce goods and services for the general good and well-being of people, life and the planet. That do things for the seventh-generation long term and not next year’s wage packet.

If you are a leader and you are not convinced by the idea that rewards sabotage intrinsic motivation (and thus also sabotage creativity and creative thought) then read Alfie Kohn’s “Punishment by Reward” or view Dan Pink’s video on the surprising science of motivation here

Now is the time for leaders to wake up to the fact that much of what we do in the guise of ‘management’ is detrimental to improvement (see here the Seven Deadly Diseases of Management)

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