[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:14.01,0:00:16.89,Default,,0000,0000,0000,,I need to make a confession, at the outset here.
Dialogue: 0,0:00:16.89,0:00:20.95,Default,,0000,0000,0000,,A little over twenty years ago, I did something that I regret
Dialogue: 0,0:00:20.95,0:00:24.38,Default,,0000,0000,0000,,Something that i'm not particularly proud of
Dialogue: 0,0:00:24.38,0:00:27.95,Default,,0000,0000,0000,,Something that, in many ways, I wish no one would ever know.
Dialogue: 0,0:00:27.95,0:00:31.08,Default,,0000,0000,0000,,but that here, I feel kind of obliged to reveal
Dialogue: 0,0:00:31.08,0:00:35.74,Default,,0000,0000,0000,,In the late 1980's
Dialogue: 0,0:00:35.74,0:00:38.88,Default,,0000,0000,0000,,In a moment of youthful indiscretion
Dialogue: 0,0:00:38.88,0:00:41.24,Default,,0000,0000,0000,,I went to law school.
Dialogue: 0,0:00:41.24,0:00:47.82,Default,,0000,0000,0000,,Now, In America
Dialogue: 0,0:00:47.82,0:00:50.74,Default,,0000,0000,0000,,law is a professional degree. You get your University degree and then you go on to law school.
Dialogue: 0,0:00:50.74,0:00:54.24,Default,,0000,0000,0000,,And when I got to Law School, I didn't do very well
Dialogue: 0,0:00:54.24,0:00:58.64,Default,,0000,0000,0000,,to put it mildly, I didn't do very well.
Dialogue: 0,0:00:58.64,0:01:00.64,Default,,0000,0000,0000,,I, in fact, graduated in the part of my law school class
Dialogue: 0,0:01:00.64,0:01:04.94,Default,,0000,0000,0000,,that made the top 90%, possible. (laughter)
Dialogue: 0,0:01:04.94,0:01:12.69,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:01:12.69,0:01:15.28,Default,,0000,0000,0000,,I never practiced law a day in my life.
Dialogue: 0,0:01:15.28,0:01:17.12,Default,,0000,0000,0000,,I pretty much wasn't allowed to. (laughter)
Dialogue: 0,0:01:17.12,0:01:23.24,Default,,0000,0000,0000,,But today, against my better judgement,
Dialogue: 0,0:01:23.24,0:01:25.18,Default,,0000,0000,0000,,against the advice of my own wife,
Dialogue: 0,0:01:25.18,0:01:31.04,Default,,0000,0000,0000,,I want to try to dust off some of those legal skills, or what's left of those legal skills.
Dialogue: 0,0:01:31.04,0:01:35.34,Default,,0000,0000,0000,,I don't want to tell you a story, I want to make a case.
Dialogue: 0,0:01:35.34,0:01:42.94,Default,,0000,0000,0000,,I want to make a hard-headed, evidence-based, dare I say, lawyer-ly case
Dialogue: 0,0:01:42.94,0:01:46.08,Default,,0000,0000,0000,,for rethinking how we run our businesses
Dialogue: 0,0:01:46.08,0:01:50.09,Default,,0000,0000,0000,,So, ladies and gentlemen of the jury
Dialogue: 0,0:01:50.09,0:01:51.66,Default,,0000,0000,0000,,Take a look at this.
Dialogue: 0,0:01:51.66,0:01:55.48,Default,,0000,0000,0000,,This is called the "Candle Problem". Some of you might have seen it before.
Dialogue: 0,0:01:55.48,0:02:00.58,Default,,0000,0000,0000,,I was created in 1945 by a scientist named Karl Duncker
Dialogue: 0,0:02:00.58,0:02:04.57,Default,,0000,0000,0000,,Duncker created this experiement that's used in a whole variety of experiements in behavioral science,
Dialogue: 0,0:02:04.57,0:02:06.62,Default,,0000,0000,0000,,and here's how it works.
Dialogue: 0,0:02:06.62,0:02:08.71,Default,,0000,0000,0000,,Suppose I am the experimentor. I bring you into a room.
Dialogue: 0,0:02:08.71,0:02:14.50,Default,,0000,0000,0000,,I give you a candle, some thumb tacks, and matches, and I say to you, "Your job...
Dialogue: 0,0:02:14.50,0:02:19.72,Default,,0000,0000,0000,,"... is to attach the candle to the wall so the wax doesn't drip onto the table."
Dialogue: 0,0:02:19.72,0:02:22.23,Default,,0000,0000,0000,,So what would you do?
Dialogue: 0,0:02:22.23,0:02:26.55,Default,,0000,0000,0000,,Now many people will begin trying to thumbtack the candle to the wall, it doesn't work
Dialogue: 0,0:02:26.55,0:02:31.45,Default,,0000,0000,0000,,Some people, and I saw someone kind of make the motion over here, have this
Dialogue: 0,0:02:31.45,0:02:34.82,Default,,0000,0000,0000,,great idea where they light the match
Dialogue: 0,0:02:34.82,0:02:37.79,Default,,0000,0000,0000,,melt the side of the candle. Try to adhere it to the wall.
Dialogue: 0,0:02:37.79,0:02:40.78,Default,,0000,0000,0000,,It's an awesome idea. Doesn't work.
Dialogue: 0,0:02:40.78,0:02:46.46,Default,,0000,0000,0000,,And eventually after 5-10 min, most people figure out the solution, which you can see here.
Dialogue: 0,0:02:46.46,0:02:51.17,Default,,0000,0000,0000,,The key is to overcome what's called, functional fixedness
Dialogue: 0,0:02:51.17,0:02:55.06,Default,,0000,0000,0000,,You look at that box and you see it only as a receptical for the tacks
Dialogue: 0,0:02:55.06,0:02:57.34,Default,,0000,0000,0000,,But, it can also have this other function
Dialogue: 0,0:02:57.34,0:02:59.78,Default,,0000,0000,0000,,as a platform for the candle
Dialogue: 0,0:02:59.78,0:03:04.53,Default,,0000,0000,0000,,Now,I want to tell you about an experiement using the Candle Problem.
Dialogue: 0,0:03:04.53,0:03:08.90,Default,,0000,0000,0000,,by a scientist named Sam Glucksberg, who is now at Princton University in the US
Dialogue: 0,0:03:08.90,0:03:12.22,Default,,0000,0000,0000,,This shows the Power of Incentives
Dialogue: 0,0:03:12.22,0:03:15.17,Default,,0000,0000,0000,,Here's what he did, He gathered his participants and said
Dialogue: 0,0:03:15.17,0:03:18.03,Default,,0000,0000,0000,,I'm going to time you. How quickly can you solve this problem?
Dialogue: 0,0:03:18.03,0:03:24.04,Default,,0000,0000,0000,,To one group he said, "I'm going to time you to establish norms for how long it typically takes
Dialogue: 0,0:03:24.04,0:03:27.02,Default,,0000,0000,0000,,someone to solve this sort of problem."
Dialogue: 0,0:03:27.02,0:03:29.89,Default,,0000,0000,0000,,To the second group, he offered rewards.
Dialogue: 0,0:03:29.89,0:03:34.13,Default,,0000,0000,0000,,He said if you are in the top 20%
Dialogue: 0,0:03:34.13,0:03:36.39,Default,,0000,0000,0000,,of the fastest times, you get 5 dollars.
Dialogue: 0,0:03:36.39,0:03:39.14,Default,,0000,0000,0000,,If you are the fastest of everyone we are testing here today...
Dialogue: 0,0:03:39.14,0:03:41.80,Default,,0000,0000,0000,,you get 20 dollars. Now this is several years ago, adjusted for inflation
Dialogue: 0,0:03:41.80,0:03:47.93,Default,,0000,0000,0000,,it's a decent sum of money for a few minutes of work, it's a nice motivator.
Dialogue: 0,0:03:47.93,0:03:51.76,Default,,0000,0000,0000,,Question. How much faster did this group...
Dialogue: 0,0:03:51.76,0:03:55.46,Default,,0000,0000,0000,,Solve the problem? Answer. It took them...
Dialogue: 0,0:03:55.46,0:04:00.47,Default,,0000,0000,0000,,on average, three and a half minutes longer
Dialogue: 0,0:04:00.47,0:04:03.92,Default,,0000,0000,0000,,Now this makes no sense, right?
Dialogue: 0,0:04:03.92,0:04:07.20,Default,,0000,0000,0000,,I mean, I'm an American. I believe in free markets. That's not how...
Dialogue: 0,0:04:07.20,0:04:11.48,Default,,0000,0000,0000,,it's supposed to work, right? If you want people to...
Dialogue: 0,0:04:11.48,0:04:14.81,Default,,0000,0000,0000,,perform better, you reward them. Bonuses...
Dialogue: 0,0:04:14.81,0:04:19.26,Default,,0000,0000,0000,,commissions, their own reality show, incentivise them.
Dialogue: 0,0:04:19.26,0:04:23.26,Default,,0000,0000,0000,,That's how business works. But that's not happening here.
Dialogue: 0,0:04:23.26,0:04:26.34,Default,,0000,0000,0000,,You've got an incentive designed to sharpen thinking and...
Dialogue: 0,0:04:26.34,0:04:31.51,Default,,0000,0000,0000,,excellerate creativity and it does just the opposite.
Dialogue: 0,0:04:31.51,0:04:35.07,Default,,0000,0000,0000,,It dulls creativity and blocks thinking. And what's interesting about...
Dialogue: 0,0:04:35.07,0:04:38.40,Default,,0000,0000,0000,,this experiement, is that it's not an aberration
Dialogue: 0,0:04:38.40,0:04:44.01,Default,,0000,0000,0000,,it's been replicated over and over and over again for nearly forty years.
Dialogue: 0,0:04:44.01,0:04:47.08,Default,,0000,0000,0000,,These contingent motivators. If you do this...
Dialogue: 0,0:04:47.08,0:04:51.28,Default,,0000,0000,0000,,Then you get that. Work in some circumstances but, if you do ...
Dialogue: 0,0:04:51.28,0:04:54.12,Default,,0000,0000,0000,,a lot of taks, they actually don't work. Or often ...
Dialogue: 0,0:04:54.12,0:04:59.00,Default,,0000,0000,0000,,They do harm. This is one of the most robust...
Dialogue: 0,0:04:59.00,0:05:01.84,Default,,0000,0000,0000,,findings in social science...
Dialogue: 0,0:05:01.84,0:05:06.70,Default,,0000,0000,0000,,and also one of the most ignored. I spent the last couple of years...
Dialogue: 0,0:05:06.70,0:05:11.48,Default,,0000,0000,0000,,looking at the science of human motivation. Particularly the dynamics of extrinsic...
Dialogue: 0,0:05:11.48,0:05:16.04,Default,,0000,0000,0000,,motivators and intrinsic motivators. and i'm telling ya, it's not even close.
Dialogue: 0,0:05:16.04,0:05:20.18,Default,,0000,0000,0000,,if you look at the science, there is a mismatch between what science knows
Dialogue: 0,0:05:20.18,0:05:24.06,Default,,0000,0000,0000,,and what buisness does. and what's alarming here
Dialogue: 0,0:05:24.06,0:05:28.08,Default,,0000,0000,0000,,is that our business operating system. Thinks with a set of assumptions and protocalls
Dialogue: 0,0:05:28.08,0:05:29.99,Default,,0000,0000,0000,,beneath our businesses. How we motivate people. How we apply our...
Dialogue: 0,0:05:29.99,0:05:34.36,Default,,0000,0000,0000,,human resources. It's built entirely around
Dialogue: 0,0:05:34.36,0:05:37.95,Default,,0000,0000,0000,,these extrinsic motivators. Around carrots and sticks. That's actually fine...
Dialogue: 0,0:05:37.95,0:05:42.13,Default,,0000,0000,0000,,for many kinds of twentith century tasks. but for, many...
Dialogue: 0,0:05:42.13,0:05:47.17,Default,,0000,0000,0000,,21st century tasks, that mechanistic, reward and punishment...
Dialogue: 0,0:05:47.17,0:05:50.13,Default,,0000,0000,0000,,approach doesn't work , often doesn't work...
Dialogue: 0,0:05:50.13,0:05:53.45,Default,,0000,0000,0000,,and often does harm. Let me show you what I mean. So Glucksberg...
Dialogue: 0,0:05:53.45,0:05:56.50,Default,,0000,0000,0000,,did another experiement similar to this where he presented the problem in a slightly different
Dialogue: 0,0:05:56.50,0:05:59.96,Default,,0000,0000,0000,,way. like this up here.
Dialogue: 0,0:05:59.96,0:06:06.12,Default,,0000,0000,0000,,Attach the candle to the wall so the wax doesn't drip onto the table. Same Deal. You, we're timing for...
Dialogue: 0,0:06:06.12,0:06:09.51,Default,,0000,0000,0000,,norms. You, we're incentivising. What happened ...
Dialogue: 0,0:06:09.51,0:06:13.25,Default,,0000,0000,0000,,this time? This time the incentivised group...
Dialogue: 0,0:06:13.25,0:06:17.51,Default,,0000,0000,0000,,kicked the other group's butt.
Dialogue: 0,0:06:17.51,0:06:19.37,Default,,0000,0000,0000,,Why?
Dialogue: 0,0:06:19.37,0:06:22.06,Default,,0000,0000,0000,,Because when the tacks are out of the box.
Dialogue: 0,0:06:22.06,0:06:28.08,Default,,0000,0000,0000,,It's pretty easy, isn't it?
Dialogue: 0,0:06:28.08,0:06:31.46,Default,,0000,0000,0000,,(laughter) If, then rewards work...
Dialogue: 0,0:06:31.46,0:06:33.34,Default,,0000,0000,0000,,really well for those sorts of tasks. Where there is a...
Dialogue: 0,0:06:33.34,0:06:36.65,Default,,0000,0000,0000,,simple set of rules and a clear desination to go to.
Dialogue: 0,0:06:36.65,0:06:41.13,Default,,0000,0000,0000,,Rewards by their very nature, narrow our focus. Concentrate our...
Dialogue: 0,0:06:41.13,0:06:44.66,Default,,0000,0000,0000,,minds. That's why they work in so many cases. So in tasks like this...
Dialogue: 0,0:06:44.66,0:06:48.94,Default,,0000,0000,0000,,a narrow focus where you just see the goal right there ...
Dialogue: 0,0:06:48.94,0:06:52.76,Default,,0000,0000,0000,,zoom in straight ahead to it, they work really well. But for the real ...
Dialogue: 0,0:06:52.76,0:06:57.20,Default,,0000,0000,0000,,Candle Problem, you don't want to be looking like this. The solution is not over here.
Dialogue: 0,0:06:57.20,0:07:01.31,Default,,0000,0000,0000,,The solution is on the periphery. You want to be looking around. That reward...
Dialogue: 0,0:07:01.31,0:07:04.98,Default,,0000,0000,0000,,actually narrows our focus and restricts our possibilities. Let me tell you why this...
Dialogue: 0,0:07:04.98,0:07:09.35,Default,,0000,0000,0000,,is so important. In Western Europe...
Dialogue: 0,0:07:09.35,0:07:13.06,Default,,0000,0000,0000,,In many parts of Asia. In North America ...
Dialogue: 0,0:07:13.06,0:07:18.04,Default,,0000,0000,0000,,In Australia, white collar workers are doing less of this kind of work
Dialogue: 0,0:07:18.04,0:07:22.16,Default,,0000,0000,0000,,and more of this kind of work.
Dialogue: 0,0:07:22.16,0:07:25.04,Default,,0000,0000,0000,,That routine, rule-based, left brain work...
Dialogue: 0,0:07:25.04,0:07:29.37,Default,,0000,0000,0000,,certain kinds of accounting, certain types of financial analysis, certain kinds of computer programing...
Dialogue: 0,0:07:29.37,0:07:33.03,Default,,0000,0000,0000,,has become fairly easy to outsource and fairly easy to automate.
Dialogue: 0,0:07:33.03,0:07:38.02,Default,,0000,0000,0000,,Software can do it faster. Low cost providers around the world can ...
Dialogue: 0,0:07:38.02,0:07:40.30,Default,,0000,0000,0000,,do it cheaper. So What really matters is...
Dialogue: 0,0:07:40.30,0:07:44.69,Default,,0000,0000,0000,,more right brain, creative, conceptual kinds of ...
Dialogue: 0,0:07:44.69,0:07:50.07,Default,,0000,0000,0000,,abilities. Think about your own work.
Dialogue: 0,0:07:50.07,0:07:53.36,Default,,0000,0000,0000,,Are the problems that you face...
Dialogue: 0,0:07:53.36,0:07:56.97,Default,,0000,0000,0000,,or even the problems we've been talking about here, are those the kinds of problems ...
Dialogue: 0,0:07:56.97,0:08:00.52,Default,,0000,0000,0000,,that have a clear set of rules and a single solution? No!
Dialogue: 0,0:08:00.52,0:08:04.26,Default,,0000,0000,0000,,The rules are mystifying. The solution, if it exists at all...
Dialogue: 0,0:08:04.26,0:08:07.72,Default,,0000,0000,0000,,Is surprising, and non-obvious. Everybody ...
Dialogue: 0,0:08:07.72,0:08:12.46,Default,,0000,0000,0000,,in this room is dealing with their own version of
Dialogue: 0,0:08:12.46,0:08:16.76,Default,,0000,0000,0000,,the Candle Problem. And for Candle Problems of any kind...
Dialogue: 0,0:08:16.76,0:08:21.28,Default,,0000,0000,0000,,in any field, Those if, then rewards,
Dialogue: 0,0:08:21.28,0:08:28.73,Default,,0000,0000,0000,,those things we use in so many of our businesses, DON'T WORK.
Dialogue: 0,0:08:28.73,0:08:32.94,Default,,0000,0000,0000,,Now, it makes me crazy.
Dialogue: 0,0:08:32.94,0:08:36.39,Default,,0000,0000,0000,,Here's the thing. This is not a feeling.
Dialogue: 0,0:08:36.39,0:08:38.10,Default,,0000,0000,0000,,Okay, I'm a lawyer. I don't believe in feelings.
Dialogue: 0,0:08:38.10,0:08:44.62,Default,,0000,0000,0000,,This is not a philosophy. I'm an American. I don't believe in Philosophy.
Dialogue: 0,0:08:44.62,0:08:48.74,Default,,0000,0000,0000,,This is ...
Dialogue: 0,0:08:48.74,0:08:52.38,Default,,0000,0000,0000,,a FACT
Dialogue: 0,0:08:52.38,0:08:54.48,Default,,0000,0000,0000,,Or as they say in my hometown of Washington, D.C.
Dialogue: 0,0:08:54.48,0:08:56.92,Default,,0000,0000,0000,,a TRUE fact.
Dialogue: 0,0:08:56.92,0:09:00.69,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:09:00.69,0:09:04.44,Default,,0000,0000,0000,,Let me give you an example of what I mean. Let me marshal the evidence.
Dialogue: 0,0:09:04.44,0:09:07.42,Default,,0000,0000,0000,,Because I'm not telling you a story, I'm making a case ladies and gentlemen of the jury.
Dialogue: 0,0:09:07.42,0:09:11.72,Default,,0000,0000,0000,,Let me show you some evidence. Dan Realy, one of the great economists of our time.
Dialogue: 0,0:09:11.72,0:09:15.53,Default,,0000,0000,0000,,He and three colleauges did a study of some MIT students.
Dialogue: 0,0:09:15.53,0:09:18.98,Default,,0000,0000,0000,,They gave these MIT students a bunch of games. Games that involved...
Dialogue: 0,0:09:18.98,0:09:23.47,Default,,0000,0000,0000,,creativity and motor skills and concentration. And they offered them ...
Dialogue: 0,0:09:23.47,0:09:27.27,Default,,0000,0000,0000,,for performance, three levels of reward. Small rewards.
Dialogue: 0,0:09:27.27,0:09:31.64,Default,,0000,0000,0000,,Medium Reward. Large Reward. Okay?
Dialogue: 0,0:09:31.64,0:09:34.86,Default,,0000,0000,0000,,Do really well you get the large reward, and then on down.
Dialogue: 0,0:09:34.86,0:09:44.16,Default,,0000,0000,0000,,What happened? (shown above)
Dialogue: 0,0:09:44.16,0:09:57.10,Default,,0000,0000,0000,,(shown above)
Dialogue: 0,0:09:57.10,0:09:59.18,Default,,0000,0000,0000,,Then they said, "Okay let's see ...
Dialogue: 0,0:09:59.18,0:10:02.39,Default,,0000,0000,0000,,if there's any cultural bias. Let's go to India and test this.
Dialogue: 0,0:10:02.39,0:10:09.34,Default,,0000,0000,0000,,Where the standard of living is lower, in India. A reward that is considered medium by ...
Dialogue: 0,0:10:09.34,0:10:11.74,Default,,0000,0000,0000,,American standards is more meaningful there. Same Deal.
Dialogue: 0,0:10:11.74,0:10:14.47,Default,,0000,0000,0000,,A bunch of games. Three levels of rewards. What happened ?
Dialogue: 0,0:10:14.47,0:10:17.83,Default,,0000,0000,0000,,People offered the Medium level of rewards
Dialogue: 0,0:10:17.83,0:10:21.07,Default,,0000,0000,0000,,Did no better that those offered the small reward.
Dialogue: 0,0:10:21.07,0:10:28.10,Default,,0000,0000,0000,,And those that were offered the highest rewards, they did worst of all
Dialogue: 0,0:10:28.10,0:10:36.56,Default,,0000,0000,0000,,(shown above)
Dialogue: 0,0:10:36.56,0:10:38.31,Default,,0000,0000,0000,,(shown above)
Dialogue: 0,0:10:38.31,0:10:40.49,Default,,0000,0000,0000,,Is this some ....
Dialogue: 0,0:10:40.49,0:10:43.79,Default,,0000,0000,0000,,kind of touchy feely socialist conspiracy going on here?
Dialogue: 0,0:10:43.79,0:10:46.06,Default,,0000,0000,0000,,No, these are economists from MIT.
Dialogue: 0,0:10:46.06,0:10:49.72,Default,,0000,0000,0000,,From Carnige Melon, from the University of Chicago. And do you know what...
Dialogue: 0,0:10:49.72,0:10:55.68,Default,,0000,0000,0000,,funded this research? The Federal Reserve Bank of the United States.
Dialogue: 0,0:10:55.68,0:10:57.91,Default,,0000,0000,0000,,That's the American Experience.
Dialogue: 0,0:10:57.91,0:11:00.61,Default,,0000,0000,0000,,That crossed the pond to the London School of Economics
Dialogue: 0,0:11:00.61,0:11:05.58,Default,,0000,0000,0000,,alma mater of 11 Nobel Laureates
Dialogue: 0,0:11:05.58,0:11:08.75,Default,,0000,0000,0000,,trainning ground for great economic thinkers like...
Dialogue: 0,0:11:08.75,0:11:13.22,Default,,0000,0000,0000,,Geroge Soros, Freidrick Hayek, and Mick Jagger.
Dialogue: 0,0:11:13.22,0:11:17.03,Default,,0000,0000,0000,,(laughter) Last month,
Dialogue: 0,0:11:17.03,0:11:21.58,Default,,0000,0000,0000,,economist at LSE looked at 51 case studies
Dialogue: 0,0:11:21.58,0:11:24.84,Default,,0000,0000,0000,,that had pay-for-performance plans inside companies. Here's what they found.
Dialogue: 0,0:11:24.84,0:11:29.23,Default,,0000,0000,0000,,(Shown above)
Dialogue: 0,0:11:29.23,0:11:33.55,Default,,0000,0000,0000,,(Shown Above)
Dialogue: 0,0:11:33.55,0:11:36.24,Default,,0000,0000,0000,,There is a mismatch between what science knows, and ...
Dialogue: 0,0:11:36.24,0:11:40.24,Default,,0000,0000,0000,,what business does. And what worries me as we stand here in the rubble ...
Dialogue: 0,0:11:40.24,0:11:45.17,Default,,0000,0000,0000,,of the economic collapse is that too many organizations ...
Dialogue: 0,0:11:45.17,0:11:49.11,Default,,0000,0000,0000,,are making their descisions, their policies about talent and people...
Dialogue: 0,0:11:49.11,0:11:52.95,Default,,0000,0000,0000,,based on assuptions that are outdated...
Dialogue: 0,0:11:52.95,0:11:56.93,Default,,0000,0000,0000,,unexamined and rooted more in folk lore
Dialogue: 0,0:11:56.93,0:12:00.99,Default,,0000,0000,0000,,than in science. and if we really want to get out of this economic mess.
Dialogue: 0,0:12:00.99,0:12:04.24,Default,,0000,0000,0000,,and if we really want high performance on those definitional tasks of the ...
Dialogue: 0,0:12:04.24,0:12:08.54,Default,,0000,0000,0000,,21st century. The solution is not to do more...
Dialogue: 0,0:12:08.54,0:12:12.48,Default,,0000,0000,0000,,of the wrong things. To entice people
Dialogue: 0,0:12:12.48,0:12:16.12,Default,,0000,0000,0000,,with a sweeter carrot or threaten them with a sharper stick
Dialogue: 0,0:12:16.12,0:12:21.35,Default,,0000,0000,0000,,we need a whole new approach. the good news about all this is that scientists studying ...
Dialogue: 0,0:12:21.35,0:12:23.96,Default,,0000,0000,0000,,motivation have given us this new approach. It's an approach ...
Dialogue: 0,0:12:23.96,0:12:27.96,Default,,0000,0000,0000,,built much more around intrinsic motivation. Around the desire to do things...
Dialogue: 0,0:12:27.96,0:12:32.04,Default,,0000,0000,0000,,because they matter, because they like it, because they are interesting, because they are important...
Dialogue: 0,0:12:32.04,0:12:35.48,Default,,0000,0000,0000,,and to my mind, that new operating system for a ...
Dialogue: 0,0:12:35.48,0:12:39.98,Default,,0000,0000,0000,,businesses revolves around 3 elements: AUTONOMY, MASTERY, AND...
Dialogue: 0,0:12:39.98,0:12:43.86,Default,,0000,0000,0000,,PURPOSE. Autonomy, the urge to run your own lives
Dialogue: 0,0:12:43.86,0:12:48.27,Default,,0000,0000,0000,,Mastery, the desire to get better and better at something that matters
Dialogue: 0,0:12:48.27,0:12:51.00,Default,,0000,0000,0000,,And Purpose, the yearning to do what we do, in the...
Dialogue: 0,0:12:51.00,0:12:55.75,Default,,0000,0000,0000,,service of something larger than ourselves. These are the building blocks...
Dialogue: 0,0:12:55.75,0:12:58.23,Default,,0000,0000,0000,,of an entirely new operating system...
Dialogue: 0,0:12:58.23,0:13:01.32,Default,,0000,0000,0000,,for our businesses. I want to talk today only about autonomy.
Dialogue: 0,0:13:01.32,0:13:05.35,Default,,0000,0000,0000,,In the 20th Century, we came up with ...
Dialogue: 0,0:13:05.35,0:13:08.73,Default,,0000,0000,0000,,the idea of management. Management did not eminate from nature. Management...
Dialogue: 0,0:13:08.73,0:13:13.22,Default,,0000,0000,0000,,is not a tree, it's a televison set. Somebody invented it.
Dialogue: 0,0:13:13.22,0:13:16.67,Default,,0000,0000,0000,,and it doesn't mean it's going to work forever.
Dialogue: 0,0:13:16.67,0:13:20.82,Default,,0000,0000,0000,,management is great and traditional notions of management are great if you want...
Dialogue: 0,0:13:20.82,0:13:24.24,Default,,0000,0000,0000,,compliance. But if you want engagement, self-direction works...
Dialogue: 0,0:13:24.24,0:13:27.86,Default,,0000,0000,0000,,better. Let me give you some examples of some radical notions of ...
Dialogue: 0,0:13:27.86,0:13:32.75,Default,,0000,0000,0000,,self-direction. What this means, and you don't see a lot of it.
Dialogue: 0,0:13:32.75,0:13:36.71,Default,,0000,0000,0000,,The first stirings of something really interesting going on. because what it means is...
Dialogue: 0,0:13:36.71,0:13:40.24,Default,,0000,0000,0000,,paying people adequately and fairly, absolutely. Getting the issue of ...
Dialogue: 0,0:13:40.24,0:13:44.47,Default,,0000,0000,0000,,money off the table and then giving people lots of autonomy. let me give you an example.
Dialogue: 0,0:13:44.47,0:13:47.98,Default,,0000,0000,0000,,How many of you have herad of the company 'Atlassian' ?
Dialogue: 0,0:13:47.98,0:13:53.15,Default,,0000,0000,0000,,Okay, looks like less that half. (laughter)
Dialogue: 0,0:13:53.15,0:13:56.33,Default,,0000,0000,0000,,Atlassian is an Austrailian
Dialogue: 0,0:13:56.33,0:13:59.63,Default,,0000,0000,0000,,software company. and they do something incredibly cool. A few...
Dialogue: 0,0:13:59.63,0:14:02.18,Default,,0000,0000,0000,,times a year they tell their engineers, "Go for the next...
Dialogue: 0,0:14:02.18,0:14:06.39,Default,,0000,0000,0000,,24 hours and work on anything you want. As long as it's...
Dialogue: 0,0:14:06.39,0:14:11.30,Default,,0000,0000,0000,,not part of your regular job." So the engineers use this time ...
Dialogue: 0,0:14:11.30,0:14:14.40,Default,,0000,0000,0000,,to come up with a cool patch of code, to come up with an elegant hack...
Dialogue: 0,0:14:14.40,0:14:17.80,Default,,0000,0000,0000,,then they present all of the stuff that they develop to their...
Dialogue: 0,0:14:17.80,0:14:21.67,Default,,0000,0000,0000,,teammates, to the rest of the company, in this wild and willy all-hands meeting...
Dialogue: 0,0:14:21.67,0:14:25.56,Default,,0000,0000,0000,,at the end of the day. And then, being Austrailians everybody...
Dialogue: 0,0:14:25.56,0:14:30.23,Default,,0000,0000,0000,,has a beer. They call them FEDEX DAYS.
Dialogue: 0,0:14:30.23,0:14:32.75,Default,,0000,0000,0000,,Why? Because you have...
Dialogue: 0,0:14:32.75,0:14:35.77,Default,,0000,0000,0000,,to deliver something over night. (laughter) it's not bad.
Dialogue: 0,0:14:35.77,0:14:38.46,Default,,0000,0000,0000,,It's a huge trademark violation, but it's pretty clever.
Dialogue: 0,0:14:38.46,0:14:43.61,Default,,0000,0000,0000,,That one day of intense autonomy has produced a whole array of software ...
Dialogue: 0,0:14:43.61,0:14:47.47,Default,,0000,0000,0000,,fixes that might never had existed. and it's worked so well the Atlassian...
Dialogue: 0,0:14:47.47,0:14:51.58,Default,,0000,0000,0000,,has taken it to the next level with 20%time, done famously at ...
Dialogue: 0,0:14:51.58,0:14:56.12,Default,,0000,0000,0000,,Google. Where engineers can spend 20% of their time working on anything they want.
Dialogue: 0,0:14:56.12,0:14:59.22,Default,,0000,0000,0000,,They have autonomy over their time, their task, their team...
Dialogue: 0,0:14:59.22,0:15:03.08,Default,,0000,0000,0000,,their technique. Radical amounts of autonomy. and at Google ...
Dialogue: 0,0:15:03.08,0:15:07.12,Default,,0000,0000,0000,,as many of you know, about half of the new...
Dialogue: 0,0:15:07.12,0:15:11.19,Default,,0000,0000,0000,,products in a typical year are birthed during that 20% time ...
Dialogue: 0,0:15:11.19,0:15:15.34,Default,,0000,0000,0000,,Things like G-Mail, Orchid, Google news. Let me give you and even more...
Dialogue: 0,0:15:15.34,0:15:20.56,Default,,0000,0000,0000,,radical example of it. Something called the RESULTS ONLY WORK ENVIRONMENT
Dialogue: 0,0:15:20.56,0:15:23.56,Default,,0000,0000,0000,,The ROWE. Created by two American consultants in place at...
Dialogue: 0,0:15:23.56,0:15:25.40,Default,,0000,0000,0000,,about a dozen companies around North America.
Dialogue: 0,0:15:25.40,0:15:28.54,Default,,0000,0000,0000,,In a ROWE people don't have schedules.
Dialogue: 0,0:15:28.54,0:15:32.46,Default,,0000,0000,0000,,They show up when they want. They don't have to be in the office...
Dialogue: 0,0:15:32.46,0:15:36.31,Default,,0000,0000,0000,,at a certain time or any time. They just have to get...
Dialogue: 0,0:15:36.31,0:15:40.73,Default,,0000,0000,0000,,their work done. How they do it, Where they do it, When they do it...
Dialogue: 0,0:15:40.73,0:15:44.35,Default,,0000,0000,0000,,is totally up to them. Meetings in these kinds of environments are...
Dialogue: 0,0:15:44.35,0:15:48.30,Default,,0000,0000,0000,,optional. What happens?
Dialogue: 0,0:15:48.30,0:15:51.29,Default,,0000,0000,0000,,Almost across the board. Productivity goes up. Worker ...
Dialogue: 0,0:15:51.29,0:15:55.95,Default,,0000,0000,0000,,engagement goes up. Worker statisfaction goes up. Turnover goes ...
Dialogue: 0,0:15:55.95,0:16:01.20,Default,,0000,0000,0000,,down. AUTONOMY, MASTERY AND PURPOSE these are the building blocks...
Dialogue: 0,0:16:01.20,0:16:05.12,Default,,0000,0000,0000,,of a new way of doing things. Now, some of you might look at this and say...
Dialogue: 0,0:16:05.12,0:16:08.69,Default,,0000,0000,0000,,"Hmm, That sounds nice but, it's utopian." and I say...
Dialogue: 0,0:16:08.69,0:16:12.11,Default,,0000,0000,0000,,"Nope. I have proof."
Dialogue: 0,0:16:12.11,0:16:16.80,Default,,0000,0000,0000,,In the mid 1990's, Microsoft started an encyclopedia called 'Encarta'.
Dialogue: 0,0:16:16.80,0:16:18.47,Default,,0000,0000,0000,,They had deployed all the right incentives.
Dialogue: 0,0:16:18.47,0:16:23.17,Default,,0000,0000,0000,,They paid professionals to write and edit thousands of articles.
Dialogue: 0,0:16:23.17,0:16:27.72,Default,,0000,0000,0000,,Well compensated managers oversaw the whole thing to make sure it came in on budget, and on time.
Dialogue: 0,0:16:27.72,0:16:32.27,Default,,0000,0000,0000,,A few years later another encyclopedia...
Dialogue: 0,0:16:32.27,0:16:33.98,Default,,0000,0000,0000,,got started. Different model.
Dialogue: 0,0:16:33.98,0:16:39.62,Default,,0000,0000,0000,,Do it for fun. No one gets paid a cent, or a Euro, or a Yen.
Dialogue: 0,0:16:39.62,0:16:42.53,Default,,0000,0000,0000,,Do it because you like to do it.
Dialogue: 0,0:16:42.53,0:16:47.74,Default,,0000,0000,0000,,Now if you had, just 10 years ago, gone to an economist, anywhere, and said...
Dialogue: 0,0:16:47.74,0:16:51.18,Default,,0000,0000,0000,,"Hey, I've got these two different models for creating an encyclopedia" If they...
Dialogue: 0,0:16:51.18,0:16:55.26,Default,,0000,0000,0000,,went head to head, who would win? 10 years ago you could not have found...
Dialogue: 0,0:16:55.26,0:16:58.06,Default,,0000,0000,0000,,a single, sober economist anywhere...
Dialogue: 0,0:16:58.06,0:17:03.27,Default,,0000,0000,0000,,on planet earth (laughter) that would have predicted the Wikipedia Model
Dialogue: 0,0:17:03.27,0:17:05.83,Default,,0000,0000,0000,,This is the Titanic battle between these two approaches. This is the...
Dialogue: 0,0:17:05.83,0:17:10.09,Default,,0000,0000,0000,,Ali v. Fraiser of motivation. This is the Thrilla in Manilla.
Dialogue: 0,0:17:10.09,0:17:12.89,Default,,0000,0000,0000,,Intrinsic Motivators vs. Extrinsic Motivators
Dialogue: 0,0:17:12.89,0:17:17.22,Default,,0000,0000,0000,,AUTONOMY, MASTERY and PURPOSE vs. Carrots and Sticks. Who wins?
Dialogue: 0,0:17:17.22,0:17:21.49,Default,,0000,0000,0000,,Intrinsic Motivation. AUTONOMY, MASTERY and PURPOSE in a knockout.
Dialogue: 0,0:17:21.49,0:17:25.61,Default,,0000,0000,0000,,Okay, let me wrap up. There is a mismatch between ...
Dialogue: 0,0:17:25.61,0:17:28.67,Default,,0000,0000,0000,,what science knows and what business does. and here's what science knows. ONE.
Dialogue: 0,0:17:28.67,0:17:33.84,Default,,0000,0000,0000,,Those 20th century rewards, those motivatiors we think are the natural part of...
Dialogue: 0,0:17:33.84,0:17:37.43,Default,,0000,0000,0000,,business, do work. But only in a surprisingly narrow band of circumstances.
Dialogue: 0,0:17:37.43,0:17:40.57,Default,,0000,0000,0000,,TWO. Those IF, THEN rewards often
Dialogue: 0,0:17:40.57,0:17:45.49,Default,,0000,0000,0000,,destroy creativity. THREE. The secret to high performance isn't ...
Dialogue: 0,0:17:45.49,0:17:48.20,Default,,0000,0000,0000,,rewards and punishments but, those unseen intrinsic...
Dialogue: 0,0:17:48.20,0:17:51.58,Default,,0000,0000,0000,,drives. The drive to do things for their own sake. The drive to do things...
Dialogue: 0,0:17:51.58,0:17:56.11,Default,,0000,0000,0000,,because they matter. And here's the best part. We already know this.
Dialogue: 0,0:17:56.11,0:17:59.93,Default,,0000,0000,0000,,The science confirms what we know in our hearts. So, if...
Dialogue: 0,0:17:59.93,0:18:03.78,Default,,0000,0000,0000,,we repair this mismatch between what science knows and what business does. If we...
Dialogue: 0,0:18:03.78,0:18:08.67,Default,,0000,0000,0000,,bring our notions of motivation into the 21st century.
Dialogue: 0,0:18:08.67,0:18:10.81,Default,,0000,0000,0000,,If we get past this lazy, dangerous...
Dialogue: 0,0:18:10.81,0:18:13.90,Default,,0000,0000,0000,,ideology of carrots and sticks
Dialogue: 0,0:18:13.90,0:18:18.98,Default,,0000,0000,0000,,we can strengthen our businesses. We can solve a lot of those Candle Problems.
Dialogue: 0,0:18:18.98,0:18:22.75,Default,,0000,0000,0000,,and maybe, maybe, maybe
Dialogue: 0,0:18:22.75,0:18:28.30,Default,,0000,0000,0000,,we can change the world. I rest my case.