Number 143 – Rewards and Recognition

Link rewards and recognition to desired outcomes.

Practitioners: tactical, integrative, and strategic

One of my favorite articles, to which I was exposed too long ago to recall the exact time, immediately comes to mind here.  The article is question is titled – On the Folly of Rewarding A, While Hoping for B – from the December 1975 issue of Academy of Management Journal.  If I recall correctly, it resurfaced in popularity in 1995 when I was introduced to designing incentives.  It remains, to this day, in my cache of go-to-articles.  Why?  I learned then how important it is to link rewards and recognition to our desired outcomes and how often we do not spend enough time considering the behaviors our incentives will elicit.  If you have never read the article, I encourage you to track it down and give it a moment of your attention. 

Rewards and recognition exist on a broad spectrum of actions and behaviors.  From the simplest form – an authentic thank you – to the most elaborate profit sharing or bonus plans one could ever imagine.  Genuine appreciation cost very little.  A poorly designed financial incentive scheme can cost you more money than you expected and after that, your job, too.  But that is not really what is beneath this point.  It is secondary, in my opinion, to the key idea.  By linking rewards and recognition to our desired outcomes, we draw the attention of our team members to what is important. 

Rewards and Recognition

This is a simple point that I find missing in every organization I visit.  One of my favorite activities to conduct with executives is to ask them if their organization really understands what they are pursuing.  “Of course, they do”!  To which I respond, then let’s set up a conversation with two or three of your direct reports and listen to their interpretation of your request.  More often than not, it is a very revealing conversation, and the executive is frustrated with the lack of alignment and understanding.  It’s a trick question.  Human beings will never perfectly translate another’s thoughts or language.  So, why conduct the exercise?

I still want rewards and recognition to be in place.  What I want just as much is a frequent accountability conversation.  When small, incremental steps are taken appropriately, sponsors have the opportunity to reward and recognize great work.  Unless we are talking often (remember frequency is a function of recovery) we miss these opportunities, and the momentum that is built in these exchanges goes a lot further than any of us give credit.  We also miss the opportunities to continue to improve the alignment and interpretation of the outcomes. 

Questions For Your Consideration

What behaviors do you recognize in your teams?

How often do you express your authentic appreciation for the work they do?

What outcomes are at risk today?

How often do you ask for an account of progress and seek to provide support for the team’s efforts?

Where might a conversation change the trajectory of a current outcome at risk?

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