Nourish the Unexpected: Facilitating Emergence

It’s not quite enough to stop controlling in order for the people in your organization to do self-managed, unprecedented work. Facilitating their work is also critically important.

Facilitation nourishes and encourages people in several ways. It feeds the part of us that wants independence and mastery because a more experienced manager/co-worker is helping us with a goal instead of exercising command over it. It feeds the part of us that wants social validation: if someone is helping us accomplish a goal, it tells us the goal is worth accomplishing. It even feeds the part of us that’s lazy–that is, the part that wants to accomplish our goals while using the smallest amount of energy possible.

Think of your organization as a computer:

Algorithmic Containmentphoto credit: Algorithmic Contaminations via photopin (license)

A computer is highly structured, functional, and hierarchical, but in order to continue running the latest software, it has to be continually upgraded and redesigned. A computer doesn’t grow on its own. This is the traditional organizational model.

Now think of your organization as a garden, growing all kinds of plants:

English gardensphoto credit: Gardens at Canons Ashby via photopin (license)

You can select the kinds of plants to grow, you can fertilize and water them to help them grow faster (but not too much or it will choke them), and you can trellis them to help them grow in a certain way, and you can prune them when they grow in ways that aren’t fruitful. Plants in a garden grow on their own, but left untended, weeds will sprout up and diseases will take hold and some plants won’t receive enough nutrients.

(Doesn’t this second metaphor sound like your organization already? Why do we so often feel like we need the additional layer of inorganic structure, except that we want an illusion of control that we don’t actually have?)

Facilitation is the art of pruning, trellising, weeding, hedging, fertilizing, and helping your organization grow. You don’t order a pear tree to blossom, you don’t command bees to pollinate, you don’t provide tomatoes with minimum production quotas. You also don’t give them these initiatives and then go back inside your house and expect everything to work unless you’re told otherwise.

A similar approach can be used to grow your organization.

Consider an example of a great gardener: Brian Grazer, movie and television producer and co-founder of Imagine Entertainment. Grazer’s preference to ask questions and make requests rather than give orders helps gain buy-in, makes people feel respected, and allows him room to doubt his knowledge without being hands-off. As a leader, he uses questions and requests as a form of trellising, guiding people to grow in a certain direction rather than commanding them to do so.

The kind of gardener you become is up to the specifics of your situation. So long as you’re seeking to grow your people and your organization, you will treat them with care and make sure they have the resources, support, and guidance they need to grow in the way that’s best for them. Being neglectful and being overattentive both have their hazards.

Have you ever worked with a good “gardener?” What have you learned from these people who dedicate themselves to growing their people, their organizations, and even their strategies?

Do This, Not That: Market Versus Social Norms

Dan Ariely makes a distinction between market norms and social norms in the fourth chapter of Predictably Irrational. He touches briefly upon the way that employers mix their messages, dangerously breaking social contracts and making things about money when they are attempting to lead a socially-driven organization.

As the book documents, operating on market norms (i.e., thinking about the money I’m getting in return for the activity I’m doing) can damage productivity even when compensation is considered adequate. But worst of all, it can damage relationships when we assumed we were operating on higher terms–social norms like trust, reciprocity, and friendship. And we can’t mix the two: once we perceive that our efforts are being valued according to market norms, that’s the mindset we use for the entire interaction.

The next era of commerce will not be kind to organizations that depend on market norms, except as perhaps a back end, business-to-business protocol. For the most part, those things that are driven by competition, price, and data can be outsourced to computers and become a secondary function of people-facing businesses, businesses that use humans for those things humans are uniquely capable of accomplishing.

If you’re still using market norms to run your business, it’s best to start weeding them out now, before they relieve you of all your self-motivated people and leave you with half-hearted key-punchers.

Here are a few “do this, not that” guidelines for common business practices:

  1. Pay healthy salaries, don’t track hours. Some businesses require hour tracking, but to the extent that it’s possible your people shouldn’t identify the time they put in with dollar amounts. Doing so puts them in a market mindset: Am I getting enough money to be worth what I’m doing? Paying healthy salaries instead removes market questions from their minds, and has the potential to make the rare transformation of money into a social contract: the business is a community that takes care of your needs, rather than an employer compensating you for your activity. This is the genius behind Netflix’s policy to pay employees as much as they would pay to keep them: there’s no need for employees to ever negotiate salary or think about how much their work is worth, so they operate on a basis of trust and social contract rather than constantly competing with the employer for a fair wage. Even better if employees have direct deposit, where the money simply appears in their accounts as if by magic.
  2. Appeal to social contract, don’t talk about money. It should go without saying that you should never bring up the fact that you’re paying an employee, or use money as a bargaining chip for a change in behavior. They’re already aware that a threat to their position in the community is a threat to their livelihood. Focus on the social contract rather than the monetary transaction. Are they letting down their co-workers? Are they hurting their ability to make a difference in the organization? Talk about those things. If you have to mention money, it’s already a lost cause. (If they’re the ones bringing money into it, you might as well address their concerns–they’re already thinking in market terms. Take it as a form of feedback on your ability to keep market norms out of your business, and consider whether the issues raised might affect other people as well.)
  3. Make your people financially secure, don’t cut costs at their expense. If your employees have to be worried about paying the rent, covering bills, and eating, then they are already thinking about their jobs in terms of market norms. If you’re going to employ someone, make sure you’re ready to pay enough that they don’t have to be concerned about the basics of life. That includes health care, child care, and retirement. Ariely and James Heyman report that people who perceived themselves as paid inadequately lost as much as a third of their productivity at a very simple mechanical task (forget creative problem solving), and that’s without factoring in any worries about feeding their children. And if Costco is any indication, paying a living wage is a clear path to sustainable business.
  4. Share successes, don’t pay bonuses. This is a tricky one: Traditionally, bonuses are the way you share successes. But paying bonuses can create a clear line between the actions of an employee and the money, turning the action into market-regulated action rather than social-regulated action. There are different ways of accomplishing essentially the same thing. One is to reframe the concept of compensation entirely, as with my post on taxation. If employees interpret the amount they earn not as a payment from you but as something they are accomplishing with you, it may be possible to avoid activating market norms. Another way is to award the bonus as an in-kind gift–but this is fraught with pitfalls. Having the employee choose the gift causes the employee to think about the monetary value; choosing the gift for the employee puts one in danger of choosing something the employee doesn’t want or need; and having co-workers choose may invite comparison and market-norm thinking among the co-workers.
  5. Show loyalty, don’t dig moats. There are already a lot of financial obstacles to leaving a job. Creating new ones causes your people to think about the job in terms of their financial need instead of thinking about the social contract. Instead, you should make it as easy as possible for them to leave–and challenge yourself to convince them they shouldn’t. To the extent your people feel that they are with you by choice and not by necessity, they will be more likely to act on social norms instead of market norms.

It can be difficult to manage the financial needs of the business while operating on social norms, but undermining the social norms can quickly undo all the effort you’ve placed into creating them. If you start by thinking of your organization as a community, a family, or a nation, you will be on more solid ground. And when in doubt, leave the money out of it.

Are You Destroying Your Motivation?

In traditional economics, motivation is simple: People want stuff. The amount of stuff they want is unlimited, therefore if you want people to do something you give them more stuff, and they will do it for you. Threaten to take away stuff, and they will avoid doing whatever would cause their stuff to be taken away.

The emerging field of behavioral economics takes a more holistic (and realistic) understanding of motivation: Sometimes people don’t want stuff. Sometimes people do things that don’t help them get more stuff. And there are some things you can’t convince people to do no matter how much stuff you give them.

This is critically important to the sudden popularity of gamification. Gamification is a way of creating incentives. But many people have attempted to create incentives based on the assumption that the only two motivators are pain and gain. This approach seems to assume that human beings operate like machines: give us a directive and reasons to follow the directive, and we will.

This thinking is what caused behaviorists to discover the overjustification effect, which is dangerous can be permanently damaging. Dubner and Levitt give a perfect example in Freakonomics of an Israeli day care facility that wanted to discourage parents from arriving late to pick up their children and started charging for late pick-up. The result was that more parents arrived late. The fee for late pick-up had supplanted an intrinsic motivation (guilt over inconveniencing the day-care workers) with an extrinsic motivation (a small fee to compensate for that inconvenience). What’s more, when the fee was subsequently removed, the damage had been done: parents continued to see the late pick-up as a service, but now it was a service they were getting for free.

Businesses often take a similar simple-economics approach to dealing with their own people. Incentivize this, disincentivize that, counter-incentivize something that you’re making more difficult. Much of the bulk and complexity of large organizations can be traced back to complicated incentives and metrics.

So before you do anything, remove the obstacles.

It’s impossible to know whether sufficient intrinsic motivations are there if you’ve piled up a mountain of paperwork in front of them. Sometimes the barriers exist outside your organization, such as the ability to market a new service. If you want a particular activity to occur more often within your organization, start by identifying and removing the obstacles, and then step back. Adding incentives is dangerous and difficult to reverse, and can result in unexpected and undesirable behaviors. If you create a space for something to happen, and your people are aware that space exists, wait and see what comes to fill in that space.

This Is More Important Than Money

We have been taught that the primary purpose of any business is to make money (by which we mean, to produce a net profit).

Did you also know that the primary purpose of any human life is to breathe, drink, sleep, and eat?

I would like to assert that this teaching is false. Profit is not the purpose of a healthy, functional business, it’s merely a result of having one.

Do I mean that no business that pursues net profit as its highest objective can be successful? It depends on what you mean by success. I could certainly pursue profit and succeed in acquiring profit. But a con man can also make a profit. So can investors who take over a business only to shut it down and lay off thousands of workers. Thieves, murderers, warmongering rulers, and slave traders have all made profits from ethically and morally questionable activities. Are their actions justified by mere profit? And are their actions repeatable and sustainable over the long term?

For a business to be healthy, it must have a healthy profit. Not just the margin in any given quarter, but its source, its sustainability, its philosophical foundations, and perhaps most importantly, its impact on the people who made it possible–employees, customers, people in the supply chain, and so on.

If my business seeks first the good of others, and creates profit as a result, then I have begun to build a healthy, sustainable business–just as eating vegetables, breathing clean air, and sleeping well every night begin to build a healthy, sustainable body. And when I seek to expand my business, my two leading questions will be, “How can I help even more people?” and “How can I help people even more?” Such questions will guide me toward sustainable growth much better than “How can I make more money?”

(The definition of “help” can be very broad, but be careful not to fool yourself into believing that doing whatever you want is “helping.” If you can’t convince someone else within fifteen seconds that what you do is helpful, it probably isn’t.)