1 00:00:14,012 --> 00:00:16,886 I need to make a confession, at the outset here. 2 00:00:16,886 --> 00:00:20,950 A little over twenty years ago, I did something that I regret 3 00:00:20,950 --> 00:00:24,380 Something that i'm not particularly proud of 4 00:00:24,380 --> 00:00:27,954 Something that, in many ways, I wish no one would ever know. 5 00:00:27,954 --> 00:00:31,079 but that here, I feel kind of obliged to reveal 6 00:00:31,079 --> 00:00:35,737 In the late 1980's 7 00:00:35,737 --> 00:00:38,878 In a moment of youthful indiscretion 8 00:00:38,878 --> 00:00:41,245 I went to law school. 9 00:00:41,245 --> 00:00:47,818 Now, In America 10 00:00:47,818 --> 00:00:50,742 law is a professional degree. You get your University degree and then you go on to law school. 11 00:00:50,742 --> 00:00:54,244 And when I got to Law School, I didn't do very well 12 00:00:54,244 --> 00:00:58,644 to put it mildly, I didn't do very well. 13 00:00:58,644 --> 00:01:00,642 I, in fact, graduated in the part of my law school class 14 00:01:00,642 --> 00:01:04,939 that made the top 90%, possible. (laughter) 15 00:01:04,939 --> 00:01:12,693 Thank you. 16 00:01:12,693 --> 00:01:15,283 I never practiced law a day in my life. 17 00:01:15,283 --> 00:01:17,122 I pretty much wasn't allowed to. (laughter) 18 00:01:17,122 --> 00:01:23,238 But today, against my better judgement, 19 00:01:23,238 --> 00:01:25,178 against the advice of my own wife, 20 00:01:25,178 --> 00:01:31,040 I want to try to dust off some of those legal skills, or what's left of those legal skills. 21 00:01:31,040 --> 00:01:35,345 I don't want to tell you a story, I want to make a case. 22 00:01:35,345 --> 00:01:42,939 I want to make a hard-headed, evidence-based, dare I say, lawyer-ly case 23 00:01:42,939 --> 00:01:46,081 for rethinking how we run our businesses 24 00:01:46,081 --> 00:01:50,092 So, ladies and gentlemen of the jury 25 00:01:50,092 --> 00:01:51,656 Take a look at this. 26 00:01:51,656 --> 00:01:55,485 This is called the "Candle Problem". Some of you might have seen it before. 27 00:01:55,485 --> 00:02:00,578 I was created in 1945 by a scientist named Karl Duncker 28 00:02:00,578 --> 00:02:04,570 Duncker created this experiement that's used in a whole variety of experiements in behavioral science, 29 00:02:04,570 --> 00:02:06,621 and here's how it works. 30 00:02:06,621 --> 00:02:08,712 Suppose I am the experimentor. I bring you into a room. 31 00:02:08,712 --> 00:02:14,501 I give you a candle, some thumb tacks, and matches, and I say to you, "Your job... 32 00:02:14,501 --> 00:02:19,718 "... is to attach the candle to the wall so the wax doesn't drip onto the table." 33 00:02:19,718 --> 00:02:22,226 So what would you do? 34 00:02:22,226 --> 00:02:26,549 Now many people will begin trying to thumbtack the candle to the wall, it doesn't work 35 00:02:26,549 --> 00:02:31,450 Some people, and I saw someone kind of make the motion over here, have this 36 00:02:31,450 --> 00:02:34,824 great idea where they light the match 37 00:02:34,824 --> 00:02:37,791 melt the side of the candle. Try to adhere it to the wall. 38 00:02:37,791 --> 00:02:40,785 It's an awesome idea. Doesn't work. 39 00:02:40,785 --> 00:02:46,456 And eventually after 5-10 min, most people figure out the solution, which you can see here. 40 00:02:46,456 --> 00:02:51,173 The key is to overcome what's called, functional fixedness 41 00:02:51,173 --> 00:02:55,058 You look at that box and you see it only as a receptical for the tacks 42 00:02:55,058 --> 00:02:57,337 But, it can also have this other function 43 00:02:57,337 --> 00:02:59,780 as a platform for the candle 44 00:02:59,780 --> 00:03:04,528 Now,I want to tell you about an experiement using the Candle Problem. 45 00:03:04,528 --> 00:03:08,902 by a scientist named Sam Glucksberg, who is now at Princton University in the US 46 00:03:08,902 --> 00:03:12,225 This shows the Power of Incentives 47 00:03:12,225 --> 00:03:15,174 Here's what he did, He gathered his participants and said 48 00:03:15,174 --> 00:03:18,034 I'm going to time you. How quickly can you solve this problem? 49 00:03:18,034 --> 00:03:24,039 To one group he said, "I'm going to time you to establish norms for how long it typically takes 50 00:03:24,039 --> 00:03:27,017 someone to solve this sort of problem." 51 00:03:27,017 --> 00:03:29,888 To the second group, he offered rewards. 52 00:03:29,888 --> 00:03:34,133 He said if you are in the top 20% 53 00:03:34,133 --> 00:03:36,391 of the fastest times, you get 5 dollars. 54 00:03:36,391 --> 00:03:39,138 If you are the fastest of everyone we are testing here today... 55 00:03:39,138 --> 00:03:41,799 you get 20 dollars. Now this is several years ago, adjusted for inflation 56 00:03:41,799 --> 00:03:47,927 it's a decent sum of money for a few minutes of work, it's a nice motivator. 57 00:03:47,927 --> 00:03:51,765 Question. How much faster did this group... 58 00:03:51,765 --> 00:03:55,458 Solve the problem? Answer. It took them... 59 00:03:55,458 --> 00:04:00,472 on average, three and a half minutes longer 60 00:04:00,472 --> 00:04:03,919 Now this makes no sense, right? 61 00:04:03,919 --> 00:04:07,203 I mean, I'm an American. I believe in free markets. That's not how... 62 00:04:07,203 --> 00:04:11,476 it's supposed to work, right? If you want people to... 63 00:04:11,476 --> 00:04:14,807 perform better, you reward them. Bonuses... 64 00:04:14,807 --> 00:04:19,257 commissions, their own reality show, incentivise them. 65 00:04:19,257 --> 00:04:23,256 That's how business works. But that's not happening here. 66 00:04:23,256 --> 00:04:26,344 You've got an incentive designed to sharpen thinking and... 67 00:04:26,344 --> 00:04:31,508 excellerate creativity and it does just the opposite. 68 00:04:31,508 --> 00:04:35,068 It dulls creativity and blocks thinking. And what's interesting about... 69 00:04:35,068 --> 00:04:38,395 this experiement, is that it's not an aberration 70 00:04:38,395 --> 00:04:44,009 it's been replicated over and over and over again for nearly forty years. 71 00:04:44,009 --> 00:04:47,084 These contingent motivators. If you do this... 72 00:04:47,084 --> 00:04:51,279 Then you get that. Work in some circumstances but, if you do ... 73 00:04:51,279 --> 00:04:54,122 a lot of taks, they actually don't work. Or often ... 74 00:04:54,122 --> 00:04:59,002 They do harm. This is one of the most robust... 75 00:04:59,002 --> 00:05:01,839 findings in social science... 76 00:05:01,839 --> 00:05:06,696 and also one of the most ignored. I spent the last couple of years... 77 00:05:06,696 --> 00:05:11,477 looking at the science of human motivation. Particularly the dynamics of extrinsic... 78 00:05:11,477 --> 00:05:16,035 motivators and intrinsic motivators. and i'm telling ya, it's not even close. 79 00:05:16,035 --> 00:05:20,178 if you look at the science, there is a mismatch between what science knows 80 00:05:20,178 --> 00:05:24,063 and what buisness does. and what's alarming here 81 00:05:24,063 --> 00:05:28,082 is that our business operating system. Thinks with a set of assumptions and protocalls 82 00:05:28,082 --> 00:05:29,990 beneath our businesses. How we motivate people. How we apply our... 83 00:05:29,990 --> 00:05:34,357 human resources. It's built entirely around 84 00:05:34,357 --> 00:05:37,950 these extrinsic motivators. Around carrots and sticks. That's actually fine... 85 00:05:37,950 --> 00:05:42,129 for many kinds of twentith century tasks. but for, many... 86 00:05:42,129 --> 00:05:47,169 21st century tasks, that mechanistic, reward and punishment... 87 00:05:47,169 --> 00:05:50,127 approach doesn't work , often doesn't work... 88 00:05:50,127 --> 00:05:53,446 and often does harm. Let me show you what I mean. So Glucksberg... 89 00:05:53,446 --> 00:05:56,504 did another experiement similar to this where he presented the problem in a slightly different 90 00:05:56,504 --> 00:05:59,961 way. like this up here. 91 00:05:59,961 --> 00:06:06,124 Attach the candle to the wall so the wax doesn't drip onto the table. Same Deal. You, we're timing for... 92 00:06:06,124 --> 00:06:09,509 norms. You, we're incentivising. What happened ... 93 00:06:09,509 --> 00:06:13,249 this time? This time the incentivised group... 94 00:06:13,249 --> 00:06:17,508 kicked the other group's butt. 95 00:06:17,508 --> 00:06:19,370 Why? 96 00:06:19,370 --> 00:06:22,057 Because when the tacks are out of the box. 97 00:06:22,057 --> 00:06:28,081 It's pretty easy, isn't it? 98 00:06:28,081 --> 00:06:31,461 (laughter) If, then rewards work... 99 00:06:31,461 --> 00:06:33,335 really well for those sorts of tasks. Where there is a... 100 00:06:33,335 --> 00:06:36,648 simple set of rules and a clear desination to go to. 101 00:06:36,648 --> 00:06:41,129 Rewards by their very nature, narrow our focus. Concentrate our... 102 00:06:41,129 --> 00:06:44,661 minds. That's why they work in so many cases. So in tasks like this... 103 00:06:44,661 --> 00:06:48,938 a narrow focus where you just see the goal right there ... 104 00:06:48,938 --> 00:06:52,755 zoom in straight ahead to it, they work really well. But for the real ... 105 00:06:52,755 --> 00:06:57,196 Candle Problem, you don't want to be looking like this. The solution is not over here. 106 00:06:57,196 --> 00:07:01,307 The solution is on the periphery. You want to be looking around. That reward... 107 00:07:01,307 --> 00:07:04,981 actually narrows our focus and restricts our possibilities. Let me tell you why this... 108 00:07:04,981 --> 00:07:09,353 is so important. In Western Europe... 109 00:07:09,353 --> 00:07:13,061 In many parts of Asia. In North America ... 110 00:07:13,061 --> 00:07:18,037 In Australia, white collar workers are doing less of this kind of work 111 00:07:18,037 --> 00:07:22,161 and more of this kind of work. 112 00:07:22,161 --> 00:07:25,041 That routine, rule-based, left brain work... 113 00:07:25,041 --> 00:07:29,371 certain kinds of accounting, certain types of financial analysis, certain kinds of computer programing... 114 00:07:29,371 --> 00:07:33,027 has become fairly easy to outsource and fairly easy to automate. 115 00:07:33,027 --> 00:07:38,021 Software can do it faster. Low cost providers around the world can ... 116 00:07:38,021 --> 00:07:40,300 do it cheaper. So What really matters is... 117 00:07:40,300 --> 00:07:44,689 more right brain, creative, conceptual kinds of ... 118 00:07:44,689 --> 00:07:50,071 abilities. Think about your own work. 119 00:07:50,071 --> 00:07:53,356 Are the problems that you face... 120 00:07:53,356 --> 00:07:56,971 or even the problems we've been talking about here, are those the kinds of problems ... 121 00:07:56,971 --> 00:08:00,520 that have a clear set of rules and a single solution? No! 122 00:08:00,520 --> 00:08:04,259 The rules are mystifying. The solution, if it exists at all... 123 00:08:04,259 --> 00:08:07,724 Is surprising, and non-obvious. Everybody ... 124 00:08:07,724 --> 00:08:12,458 in this room is dealing with their own version of 125 00:08:12,458 --> 00:08:16,760 the Candle Problem. And for Candle Problems of any kind... 126 00:08:16,760 --> 00:08:21,285 in any field, Those if, then rewards, 127 00:08:21,285 --> 00:08:28,728 those things we use in so many of our businesses, DON'T WORK. 128 00:08:28,728 --> 00:08:32,938 Now, it makes me crazy. 129 00:08:32,938 --> 00:08:36,387 Here's the thing. This is not a feeling. 130 00:08:36,387 --> 00:08:38,105 Okay, I'm a lawyer. I don't believe in feelings. 131 00:08:38,105 --> 00:08:44,622 This is not a philosophy. I'm an American. I don't believe in Philosophy. 132 00:08:44,622 --> 00:08:48,737 This is ... 133 00:08:48,737 --> 00:08:52,380 a FACT 134 00:08:52,380 --> 00:08:54,477 Or as they say in my hometown of Washington, D.C. 135 00:08:54,477 --> 00:08:56,916 a TRUE fact. 136 00:08:56,916 --> 00:09:00,688 (Laughter) 137 00:09:00,688 --> 00:09:04,445 Let me give you an example of what I mean. Let me marshal the evidence. 138 00:09:04,445 --> 00:09:07,419 Because I'm not telling you a story, I'm making a case ladies and gentlemen of the jury. 139 00:09:07,419 --> 00:09:11,715 Let me show you some evidence. Dan Realy, one of the great economists of our time. 140 00:09:11,715 --> 00:09:15,532 He and three colleauges did a study of some MIT students. 141 00:09:15,532 --> 00:09:18,980 They gave these MIT students a bunch of games. Games that involved... 142 00:09:18,980 --> 00:09:23,472 creativity and motor skills and concentration. And they offered them ... 143 00:09:23,472 --> 00:09:27,269 for performance, three levels of reward. Small rewards. 144 00:09:27,269 --> 00:09:31,645 Medium Reward. Large Reward. Okay? 145 00:09:31,645 --> 00:09:34,862 Do really well you get the large reward, and then on down. 146 00:09:34,862 --> 00:09:44,159 What happened? (shown above) 147 00:09:44,159 --> 00:09:57,099 (shown above) 148 00:09:57,099 --> 00:09:59,175 Then they said, "Okay let's see ... 149 00:09:59,175 --> 00:10:02,390 if there's any cultural bias. Let's go to India and test this. 150 00:10:02,390 --> 00:10:09,338 Where the standard of living is lower, in India. A reward that is considered medium by ... 151 00:10:09,338 --> 00:10:11,745 American standards is more meaningful there. Same Deal. 152 00:10:11,745 --> 00:10:14,468 A bunch of games. Three levels of rewards. What happened ? 153 00:10:14,468 --> 00:10:17,830 People offered the Medium level of rewards 154 00:10:17,830 --> 00:10:21,069 Did no better that those offered the small reward. 155 00:10:21,069 --> 00:10:28,095 And those that were offered the highest rewards, they did worst of all 156 00:10:28,095 --> 00:10:36,561 (shown above) 157 00:10:36,561 --> 00:10:38,306 (shown above) 158 00:10:38,306 --> 00:10:40,494 Is this some .... 159 00:10:40,494 --> 00:10:43,792 kind of touchy feely socialist conspiracy going on here? 160 00:10:43,792 --> 00:10:46,057 No, these are economists from MIT. 161 00:10:46,057 --> 00:10:49,719 From Carnige Melon, from the University of Chicago. And do you know what... 162 00:10:49,719 --> 00:10:55,679 funded this research? The Federal Reserve Bank of the United States. 163 00:10:55,679 --> 00:10:57,912 That's the American Experience. 164 00:10:57,912 --> 00:11:00,610 That crossed the pond to the London School of Economics 165 00:11:00,610 --> 00:11:05,581 alma mater of 11 Nobel Laureates 166 00:11:05,581 --> 00:11:08,754 trainning ground for great economic thinkers like... 167 00:11:08,754 --> 00:11:13,220 Geroge Soros, Freidrick Hayek, and Mick Jagger. 168 00:11:13,220 --> 00:11:17,029 (laughter) Last month, 169 00:11:17,029 --> 00:11:21,584 economist at LSE looked at 51 case studies 170 00:11:21,584 --> 00:11:24,839 that had pay-for-performance plans inside companies. Here's what they found. 171 00:11:24,839 --> 00:11:29,231 (Shown above) 172 00:11:29,231 --> 00:11:33,554 (Shown Above) 173 00:11:33,554 --> 00:11:36,244 There is a mismatch between what science knows, and ... 174 00:11:36,244 --> 00:11:40,235 what business does. And what worries me as we stand here in the rubble ... 175 00:11:40,235 --> 00:11:45,169 of the economic collapse is that too many organizations ... 176 00:11:45,169 --> 00:11:49,109 are making their descisions, their policies about talent and people... 177 00:11:49,109 --> 00:11:52,953 based on assuptions that are outdated... 178 00:11:52,953 --> 00:11:56,933 unexamined and rooted more in folk lore 179 00:11:56,933 --> 00:12:00,992 than in science. and if we really want to get out of this economic mess. 180 00:12:00,992 --> 00:12:04,241 and if we really want high performance on those definitional tasks of the ... 181 00:12:04,241 --> 00:12:08,539 21st century. The solution is not to do more... 182 00:12:08,539 --> 00:12:12,476 of the wrong things. To entice people 183 00:12:12,476 --> 00:12:16,117 with a sweeter carrot or threaten them with a sharper stick 184 00:12:16,117 --> 00:12:21,350 we need a whole new approach. the good news about all this is that scientists studying ... 185 00:12:21,350 --> 00:12:23,964 motivation have given us this new approach. It's an approach ... 186 00:12:23,964 --> 00:12:27,956 built much more around intrinsic motivation. Around the desire to do things... 187 00:12:27,956 --> 00:12:32,045 because they matter, because they like it, because they are interesting, because they are important... 188 00:12:32,045 --> 00:12:35,477 and to my mind, that new operating system for a ... 189 00:12:35,477 --> 00:12:39,981 businesses revolves around 3 elements: AUTONOMY, MASTERY, AND... 190 00:12:39,981 --> 00:12:43,857 PURPOSE. Autonomy, the urge to run your own lives 191 00:12:43,857 --> 00:12:48,272 Mastery, the desire to get better and better at something that matters 192 00:12:48,272 --> 00:12:51,000 And Purpose, the yearning to do what we do, in the... 193 00:12:51,000 --> 00:12:55,748 service of something larger than ourselves. These are the building blocks... 194 00:12:55,748 --> 00:12:58,234 of an entirely new operating system... 195 00:12:58,234 --> 00:13:01,316 for our businesses. I want to talk today only about autonomy. 196 00:13:01,316 --> 00:13:05,349 In the 20th Century, we came up with ... 197 00:13:05,349 --> 00:13:08,727 the idea of management. Management did not eminate from nature. Management... 198 00:13:08,727 --> 00:13:13,222 is not a tree, it's a televison set. Somebody invented it. 199 00:13:13,222 --> 00:13:16,668 and it doesn't mean it's going to work forever. 200 00:13:16,668 --> 00:13:20,820 management is great and traditional notions of management are great if you want... 201 00:13:20,820 --> 00:13:24,245 compliance. But if you want engagement, self-direction works... 202 00:13:24,245 --> 00:13:27,862 better. Let me give you some examples of some radical notions of ... 203 00:13:27,862 --> 00:13:32,748 self-direction. What this means, and you don't see a lot of it. 204 00:13:32,748 --> 00:13:36,712 The first stirings of something really interesting going on. because what it means is... 205 00:13:36,712 --> 00:13:40,236 paying people adequately and fairly, absolutely. Getting the issue of ... 206 00:13:40,236 --> 00:13:44,467 money off the table and then giving people lots of autonomy. let me give you an example. 207 00:13:44,467 --> 00:13:47,975 How many of you have herad of the company 'Atlassian' ? 208 00:13:47,975 --> 00:13:53,146 Okay, looks like less that half. (laughter) 209 00:13:53,146 --> 00:13:56,330 Atlassian is an Austrailian 210 00:13:56,330 --> 00:13:59,626 software company. and they do something incredibly cool. A few... 211 00:13:59,626 --> 00:14:02,176 times a year they tell their engineers, "Go for the next... 212 00:14:02,176 --> 00:14:06,394 24 hours and work on anything you want. As long as it's... 213 00:14:06,394 --> 00:14:11,297 not part of your regular job." So the engineers use this time ... 214 00:14:11,297 --> 00:14:14,404 to come up with a cool patch of code, to come up with an elegant hack... 215 00:14:14,404 --> 00:14:17,799 then they present all of the stuff that they develop to their... 216 00:14:17,799 --> 00:14:21,666 teammates, to the rest of the company, in this wild and willy all-hands meeting... 217 00:14:21,666 --> 00:14:25,557 at the end of the day. And then, being Austrailians everybody... 218 00:14:25,557 --> 00:14:30,229 has a beer. They call them FEDEX DAYS. 219 00:14:30,229 --> 00:14:32,753 Why? Because you have... 220 00:14:32,753 --> 00:14:35,769 to deliver something over night. (laughter) it's not bad. 221 00:14:35,769 --> 00:14:38,463 It's a huge trademark violation, but it's pretty clever. 222 00:14:38,463 --> 00:14:43,611 That one day of intense autonomy has produced a whole array of software ... 223 00:14:43,611 --> 00:14:47,472 fixes that might never had existed. and it's worked so well the Atlassian... 224 00:14:47,472 --> 00:14:51,582 has taken it to the next level with 20%time, done famously at ... 225 00:14:51,582 --> 00:14:56,125 Google. Where engineers can spend 20% of their time working on anything they want. 226 00:14:56,125 --> 00:14:59,224 They have autonomy over their time, their task, their team... 227 00:14:59,224 --> 00:15:03,078 their technique. Radical amounts of autonomy. and at Google ... 228 00:15:03,078 --> 00:15:07,115 as many of you know, about half of the new... 229 00:15:07,115 --> 00:15:11,192 products in a typical year are birthed during that 20% time ... 230 00:15:11,192 --> 00:15:15,338 Things like G-Mail, Orchid, Google news. Let me give you and even more... 231 00:15:15,338 --> 00:15:20,562 radical example of it. Something called the RESULTS ONLY WORK ENVIRONMENT 232 00:15:20,562 --> 00:15:23,562 The ROWE. Created by two American consultants in place at... 233 00:15:23,562 --> 00:15:25,400 about a dozen companies around North America. 234 00:15:25,400 --> 00:15:28,535 In a ROWE people don't have schedules. 235 00:15:28,535 --> 00:15:32,458 They show up when they want. They don't have to be in the office... 236 00:15:32,458 --> 00:15:36,314 at a certain time or any time. They just have to get... 237 00:15:36,314 --> 00:15:40,728 their work done. How they do it, Where they do it, When they do it... 238 00:15:40,728 --> 00:15:44,346 is totally up to them. Meetings in these kinds of environments are... 239 00:15:44,346 --> 00:15:48,301 optional. What happens? 240 00:15:48,301 --> 00:15:51,290 Almost across the board. Productivity goes up. Worker ... 241 00:15:51,290 --> 00:15:55,953 engagement goes up. Worker statisfaction goes up. Turnover goes ... 242 00:15:55,953 --> 00:16:01,199 down. AUTONOMY, MASTERY AND PURPOSE these are the building blocks... 243 00:16:01,199 --> 00:16:05,122 of a new way of doing things. Now, some of you might look at this and say... 244 00:16:05,122 --> 00:16:08,693 "Hmm, That sounds nice but, it's utopian." and I say... 245 00:16:08,693 --> 00:16:12,112 "Nope. I have proof." 246 00:16:12,112 --> 00:16:16,801 In the mid 1990's, Microsoft started an encyclopedia called 'Encarta'. 247 00:16:16,801 --> 00:16:18,470 They had deployed all the right incentives. 248 00:16:18,470 --> 00:16:23,173 They paid professionals to write and edit thousands of articles. 249 00:16:23,173 --> 00:16:27,718 Well compensated managers oversaw the whole thing to make sure it came in on budget, and on time. 250 00:16:27,718 --> 00:16:32,267 A few years later another encyclopedia... 251 00:16:32,267 --> 00:16:33,979 got started. Different model. 252 00:16:33,979 --> 00:16:39,622 Do it for fun. No one gets paid a cent, or a Euro, or a Yen. 253 00:16:39,622 --> 00:16:42,526 Do it because you like to do it. 254 00:16:42,526 --> 00:16:47,743 Now if you had, just 10 years ago, gone to an economist, anywhere, and said... 255 00:16:47,743 --> 00:16:51,184 "Hey, I've got these two different models for creating an encyclopedia" If they... 256 00:16:51,184 --> 00:16:55,256 went head to head, who would win? 10 years ago you could not have found... 257 00:16:55,256 --> 00:16:58,063 a single, sober economist anywhere... 258 00:16:58,063 --> 00:17:03,266 on planet earth (laughter) that would have predicted the Wikipedia Model 259 00:17:03,266 --> 00:17:05,832 This is the Titanic battle between these two approaches. This is the... 260 00:17:05,832 --> 00:17:10,087 Ali v. Fraiser of motivation. This is the Thrilla in Manilla. 261 00:17:10,087 --> 00:17:12,890 Intrinsic Motivators vs. Extrinsic Motivators 262 00:17:12,890 --> 00:17:17,221 AUTONOMY, MASTERY and PURPOSE vs. Carrots and Sticks. Who wins? 263 00:17:17,221 --> 00:17:21,488 Intrinsic Motivation. AUTONOMY, MASTERY and PURPOSE in a knockout. 264 00:17:21,488 --> 00:17:25,614 Okay, let me wrap up. There is a mismatch between ... 265 00:17:25,614 --> 00:17:28,666 what science knows and what business does. and here's what science knows. ONE. 266 00:17:28,666 --> 00:17:33,843 Those 20th century rewards, those motivatiors we think are the natural part of... 267 00:17:33,843 --> 00:17:37,430 business, do work. But only in a surprisingly narrow band of circumstances. 268 00:17:37,430 --> 00:17:40,574 TWO. Those IF, THEN rewards often 269 00:17:40,574 --> 00:17:45,486 destroy creativity. THREE. The secret to high performance isn't ... 270 00:17:45,486 --> 00:17:48,196 rewards and punishments but, those unseen intrinsic... 271 00:17:48,196 --> 00:17:51,583 drives. The drive to do things for their own sake. The drive to do things... 272 00:17:51,583 --> 00:17:56,113 because they matter. And here's the best part. We already know this. 273 00:17:56,113 --> 00:17:59,930 The science confirms what we know in our hearts. So, if... 274 00:17:59,930 --> 00:18:03,781 we repair this mismatch between what science knows and what business does. If we... 275 00:18:03,781 --> 00:18:08,673 bring our notions of motivation into the 21st century. 276 00:18:08,673 --> 00:18:10,812 If we get past this lazy, dangerous... 277 00:18:10,812 --> 00:18:13,902 ideology of carrots and sticks 278 00:18:13,902 --> 00:18:18,983 we can strengthen our businesses. We can solve a lot of those Candle Problems. 279 00:18:18,983 --> 00:18:22,753 and maybe, maybe, maybe 280 00:18:22,753 --> 00:18:28,297 we can change the world. I rest my case.