Functional fixedness is a type of cognitive bias that involves a tendency to see objects as only working in a particular way
A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment.
receptacle for the tacks
the power of incentives.
gather participants
to establish norms, averages
adjusted for inflation
to sharpen thinking - to dull thinking
contingent motivators –
if you do this, then you get that
do harm
robust findings
extrinsic motivators vs intrinsic motivators
mismatch
business operating system
the set of assumptions and protocols beneath our businesses, how we motivate people, how we apply our human resources
mechanistic, reward-and-punishment approach
If-then rewards work really well for those sorts of tasks, where there is a simple set of rules and a clear destination to go to. Rewards, by their very nature, narrow our focus, concentrate the mind; that's why they work in so many cases. So, for tasks like this, a narrow focus, where you just see the goal right there, zoom straight ahead to it, they work really well.
reward actually narrows our focus and restricts our possibility.
routine, rule-based, left-brain work
certain kinds of accounting, certain kinds of financial analysis, certain kinds of computer programming
to outsource,
fairly easy to automate. Software can do it faster. Low-cost providers can do it cheaper
right-brained creative, conceptual abilities.
whole new approach.
the new operating system revolves around three elements: autonomy, mastery and purpose.
Autonomy
the urge to direct our own lives.
Mastery:
the desire to get better and better at something that matters.
Purpose:
the yearning to do what we do in the service of something larger than ourselves.
building blocks
Intrinsic motivators versus extrinsic motivators.
Autonomy, mastery and purpose, versus carrot and sticks,
Let me wrap up
1
Those 20th century rewards, those motivators we think are a natural part of business, do work, but only in a surprisingly narrow band of circumstances.
2
Those if-then rewards often destroy creativity.
3
The secret to high performance isn't rewards and punishments, but that unseen intrinsic drive-- the drive to do things for their own sake. The drive to do things ‘cause they matter.
if we get past this lazy, dangerous, ideology of carrots and sticks,
we can strengthen our businesses, we can solve a lot of those candle problems, and maybe, maybe -- we can change the world.
I rest my case
used in a court of law by a lawyer for saying that they have finished explaining their case and are ready for the judge or jury to decide it.
Conversation questions
Does you job consist in routine based activities or does it require creative, conceptual kinds of abilities?
The candle problem
Research studies in the field of behavioural science show that extrinsic motivators, like punishment or rewards (carrots and sticks), work only for routine activities however they don't work when we need to accomplish tasks which require conceptual kinds of abilities.
Take a look at this. This is called the candle problem. Some of you might have seen this before. It's created in 1945 by a psychologist named Karl Duncker. Karl Duncker has created this experiment that is used in a whole variety experiments in behavioural science. And here's how it works. Suppose I'm the experimenter. I bring you into a room. I give you a candle, some thumbtacks and some matches. And I say to you, "Your job is to attach the candle to the wall, so the wax doesn't drip onto the table." Now what would you do?
Many people begin trying to thumbtack the candle to the wall. Doesn't work. Some body, some people and I saw somebody kind of make the motion over here -- some people have a great idea where they light the match, melt the side of the candle, try to adhere it to the wall. It's an awesome idea. Doesn't work. And eventually, after five or ten minutes, most people figure out the solution, which you can see here.
The key is to overcome what's called functional fixedness. You look at that box and you see it only as a receptacle for the tacks. But it can also have this other function, as a platform for the candle. The candle problem.
Now, I want to tell you about an experiment using the candle problem, done by a scientist named Sam Glucksberg, who is now at Princeton University, US. This shows the power of incentives.
Here’s what he did. He gathered his participants and he said: "I'm gonna time you, how quickly you can solve this problem." To one group he said, "I'm gonna time you to establish norms, averages for how long it typically takes someone to solve this sort of problem."
To the second group he offered rewards. He said, "If you're in the top 25% of the fastest times, you get five dollars. If you're the fastest of everyone we're testing here today, you get 20 dollars." Now this is several years ago, adjusted for inflation, it's a decent sum of money for a few minutes of work. It's a nice motivator.
Question: How much faster did this group solve the problem?
Answer: It took them, on average, three and a half minutes longer. Three and a half minutes longer. This makes no sense, right? I mean, I'm an American. I believe in free markets. That's not how it's supposed to work, right?
If you want people to perform better, you reward them. Right? Bonuses, commissions, their own reality show. Incentivize them. That's how business works. But that's not happening here. You've got an incentive designed to sharpen thinking and accelerate creativity, and it does just the opposite. It dulls thinking and blocks creativity.
What's interesting about this experiment is that it's not an aberration. This has been replicated over and over and over again for nearly 40 years. These contingent motivators -- if you do this, then you get that -- work in some circumstances. But for a lot of tasks, they actually either don't work or, often, they do harm. This is one of the most robust findings in social science, and also one of the most ignored.
I spent the last couple of years looking at the science of human motivation, particularly the dynamics of extrinsic motivators and intrinsic motivators. And I'm telling you, it's not even close. If you look at the science, there is a mismatch between what science knows and what business does.
And what's alarming here is that our business operating system -- think of the set of assumptions and protocols beneath our businesses, how we motivate people, how we apply our human resources-- it's built entirely around these extrinsic motivators, around carrots and sticks. That's actually fine for many kinds of 20th century tasks. But for 21st century tasks, that mechanistic, reward-and-punishment approach doesn't work, often doesn't work, and often does harm.
If-then rewards work really well for those sorts of tasks, where there is a simple set of rules and a clear destination to go to. Rewards, by their very nature, narrow our focus, concentrate the mind; that's why they work in so many cases. So, for tasks like this, a narrow focus, where you just see the goal right there, zoom straight ahead to it, they work really well.
But for the real candle problem, you don't want to be looking like this. The solutions aren’t over here. The solutions are on the periphery. You want to be looking around. That reward actually narrows our focus and restricts our possibility.
That routine, rule-based, left-brain work -- certain kinds of accounting, certain kinds of financial analysis, certain kinds of computer programming -- has become fairly easy to outsource, fairly easy to automate. Software can do it faster. Low-cost providers round the world can do it cheaper. So, what really matters are the more right-brained creative, conceptual kinds of abilities.
Think about your own work. Think about your own work. Are the problems that you face, or even the problems we've been talking about here, are those kind of problems, they have a clear set of rules, and a single solution? No. The rules are mystifying. The solution, if it exists at all, is surprising and not obvious. Everybody in this room is dealing with their own version of the candle problem. And for candle problems of any kind, in any field, those if-then rewards, the things around which we've built so many of our businesses, don't work!
Now I mean, it makes me crazy. And this is not, here's the thing. This is not a feeling. Okay? I'm a lawyer; I don't believe in feelings. This is not a philosophy. I'm an American; I don't believe in philosophy.
(Laughter)
This is a fact -- or, as we say in my hometown of Washington, D.C., a true fact.
(Applause)
We need a whole new approach. The good news is that the scientists who've been studying motivation have given us this new approach. It's an approach built much more around intrinsic motivation. Around the desire to do things because they matter, because we like it, because they're interesting, because they’re part of something important. And to my mind, that new operating system for our businesses revolves around three elements: autonomy, mastery and purpose. Autonomy: the urge to direct our own lives. Mastery: the desire to get better and better at something that matters. Purpose: the yearning to do what we do in the service of something larger than ourselves. These are the building blocks of an entirely new operating system for our businesses.
All right? Intrinsic motivators versus extrinsic motivators. Autonomy, mastery and purpose, versus carrot and sticks, and who wins? Intrinsic motivation, autonomy, mastery and purpose, in a knockout.
Let me wrap up.
There’s a mismatch between what science knows and what business does. Here is what science knows. One: Those 20th century rewards, those motivators we think are a natural part of business, do work, but only in a surprisingly narrow band of circumstances. Two: Those if-then rewards often destroy creativity. Three: The secret to high performance isn't rewards and punishments, but that unseen intrinsic drive-- the drive to do things for their own sake. The drive to do things ‘cause they matter.
Here's the best part. Here's the best part. We already know this. The science confirms what we know in our hearts. So, if we repair this mismatch between what science knows and what business does, if we bring our motivation, notions of motivation into the 21st century, if we get past this lazy, dangerous, ideology of carrots and sticks, we can strengthen our businesses, we can solve a lot of those candle problems, and maybe, maybe, maybe -- we can change the world.