Adrian Gostick

Flipping through the July Special Report of Money magazine, it’s hard to miss the glowing Carrot on page 21. Tyler Cowen, professor of economics at George Mason University, has written an article that says to get your people working harder in this economy you’ve got to “dole out cheap carrots.”

Professor Cowen states, “Offering bonuses for superior performance works, but that’s not an option when your budget has been cut to the bone.” He cited a study by Kaisen Consulting, showing employees actually ranked “financial reward” as only No. 6 in a list of work motivators. “Far more important,” Cowen notes, “recognition and a sense of accomplishment. So ladle on the praise for a job well done.”
Well said professor.
The doctor also doled out some other advice to get your people to give their all. First, he said you must roll up your sleeves yourself. Next, he reminds us to create a sense of urgency with measurable goals and specific deadlines. And finally he says we must treat our people fairly.
While I agree with the idea that unfair treatment breeds resentment, I do question Cowen when he recommends we “fake” the “love” for employees we don’t like. I have 14 people who work in my group, and I can honestly say I like them all. When we have someone we don’t get along with on our group, there’s usually an underlying problem in communication and trust that must be addressed. I think a “fake it” approach puts our heads firmly in the sand.

The second edition of The Carrot Principle hits the BusinessWeek Bestseller list.

The authors, long devoted to the dissemination of “carrot culture,” are back, listing techniques for recognizing and praising the performers in an organization, the thing so many managers are afraid to do.

If you had employee satisfaction levels at the 92nd percent nationally, would you be looking to improve? Keith Steffen is.

I had a chance this week to present to the 300 senior leaders of the Order of Saint Francis Medical Center in Peoria, Illinois. This 6,000-person hospital system is typically ranked among the best in the nation for patient outcomes, but I was interested in how Chief Administrator Keith Steffen and his team get such amazing engagement scores.

Keith and his VP of HR Lynn Gillespie invited me in because, like most organizations, their employee survey scores on recognition were lower than they wanted. Their recognition ratings are above average for the nation, but they knew that if they could impact recognition positively they could maintain and even improve their employee engagement scores and resulting care for their patients.

As we began the meeting, Keith had some powerful things to say about appreciating their employees. “A simple thank you means so much, but often we leaders get busy and forget the little things. But everyone wants to be acknowledged for their hard work.” Wouldn’t you want to work for a CEO like that?

Keith went on to explain that effective recognition has key takeaways for our employees. It:

1. Helps align employee behaviors with key strategic initiatives
2. Improves employee retention (still a big issue in healthcare)
3. Allows employees to understand the role they play in the organization’s success
4. Reinforces positive behaviors
5. Provides a tangible reminder for the employee to take home to their families
6. Makes leaders more visible to their people
7. Re-recruits the next generation of healthcare leaders

Keith admitted, as a type-A personality, he had to teach himself Carrot behaviors. “I had to learn to look up in the halls, greet people, to look for positives,” he said. “But now I meet patients and ask them about their care. They’ll say to me, you need to meet my nurse. So I go and find the nurse and let them know what their patient said about them. Looking for positives is a learned behavior.”

Looking for positives is a learned behavior. I thought that bore repeating.

Now wherever I go, there is always a great manager or two who excels at appreciation. OSF had more than its share. Cassy Horack runs OSF’s Safety Department. She received one of the highest scores from her employees for recognition on the 2009 employee survey.

What is Cassy’s secret? She recognizes her teammates with thank you notes that she writes daily, but Cassy also recognizes other employees who exemplify safety values. Every day in huddles in various departments, Cassy finds a reason to recognize a nurse, lab tech, or other employee who has gone above-and-beyond to keep safe the hospital and those they serve.

As we closed the day of Carrots training, Keith offered this comment. “There are a lot of things that need to be cut in this economy, but recognition is not among them. I ask you to hold me accountable. Send me the names of people you want to acknowledge, and I’ll write them notes. Let’s reward the heck out of anyone who is going above-and-beyond for our organization.”

Ninety two percent in Peoria, and getting better.

As life is full of good days and bad, happy and sad, we all need encouragement and feedback to keep us upbeat, energized, and at the end of the day, feeling good about who we are and what we do. This is why sincere and defined recognition is so important to our culture and our work place environment.”
—Keith Steffen

My colleague Steve Gibbons was in D.C. last week, working the Carrots booth at the annual American Society for Training and Development convention (where our booth was named best in show, by the way). On Monday evening, he and his wife went to visit the U.S. Marine Corps War Memorial in Arlington, honoring the Marines who have died defending the U.S. There, he chanced upon some remarkable recognition.

This first photo shows the memorial, a statue of the scene after the military capture Iwo Jima during World War II.

Steve looked closely and noticed a group gathered at the base of the memorial. A one-star general was taking time out of his busy schedule to address the small gathering. He was in the process of promoting the man on the left to the rank of lieutenant colonel.

I’m afraid Steve wasn’t able to jot down their names. But he did recall that the general spoke of the man’s honor, courage and commitment, as you would imagine. But it was not his words but what he did that made this recognition event remarkable. First, he had invited the new colonel’s family.

You can see them standing together on the steps, looking up proudly at their husband and father. The general knew this moment would mean more with those the man loved surrounding him.

The general also knew enough to have the man’s son read the promotion order. The young boy read aloud while the officers faced each other. There was not a dry eye in the house.

How wonderful for Steve to stumble upon a leader who understands the power of recognition. If you are going to promote someone in your organization, do you think you could learn a lesson from the general?
Finally, the recognition was complete when the general asked the family members to help apply the symbols of his new rank.

When it comes to the best places to work for federal employees, workers cite strong leadership and straight answers more often than pay and benefits.

According to a comprehensive study of the federal workforce, the Nuclear Regulatory Commission sits atop the list of best places to work in the government. The number one reason: Because senior management takes the time to listen to the staff.

Overall on the survey, what separates the good from the bad is how well managers share information with subordinates, and the training and opportunities provided to workers. The survey recommends managers communicate, communicate and communicate. In fact, less than of half of federal workers say they receive the information they need from their boss, a number that trails the private sector by a whopping 18 percent points.

Check out the story in The Washington Post.