Strategic Innovation is a free monthly newsletter on implementing leadership, strategy and innovation to rapidly achieve your business goals.

Back issues are archived for free downloading at www.DanielLockConsulting.com.

In this Issue

	Strategic Focus Newsletter
	Welcome
	Article of the month: Why Money Is Not A Motivator
	Techniques of the month: 7 Ways to Show Appreciation to Staff
	Announcements: New Websites

Welcome

Welcome to the new look September newsletter.

This month I take a look at managing and why money is not a motivator. A controversial topic depending on where you sit. But getting the team motivated is not all about money.

Article of the month: Why Money Is Not A Motivator

Or Why You Cant Get Blood From A Stone.

We all know what employees want right? Just ask them. More money. Why else do we work? I am fascinated that companies continue to poor good money after bad on incentive schemes and pay rates in order to be come ‘employer of choice’ when money is not the primary motivator.

Many of us have played the hypothetical game of what would you do for a million dollars. At some point we reach a point where we say "No I wouldn’t do that!" Sure money is very important to people, it makes the world go round. But money is only the symbol of the transfer of energy. Energy can take many other forms.

The Hygiene Factor
Frederick Herzberg, a psychologist who went on to become a noted management consultant coined the term Hygiene factors with regards to explaining employee motivation. These are the factors when absent have a huge de-motivating effect on employees. However, if in abundance they have no real long-term positive effect on satisfaction.

Hygiene factors include:

• Appropriate pay
• Company policy
• Provision of essential services, eg physical environment
• And so on

On the other side of the coin is the motivation factors. These are the delivery of elements that appeal to peoples innate rational self-interest. As opposed to hygiene factors they have a long-term positive effect on employee motivation. If they are missing, they have little effect on dissatisfaction.

Motivation factors include:

• Career advancement
• Recognition
• Additional Responsibility
• The particular work itself
• My skills being fully used and engaged.

If you were to pay unhappy people more what will you get? A richer, unhappy employee. This doesn’t mean you should pay peanuts. As previously stated it is a hygiene factor and the absence of which, or if the pay is no longer commensurate then hey employee performance is likely to deteriorate if left unchecked.

I have been involved in property development for many years, and there I cut my teeth as an entrepreneur so to speak. In the property game when doing a renovation one has to be very careful not over-capitalize. If you do the highest end-plumbing job, the buyer’s just don’t care. They can’t see it. They just expect plumbing to be there. They want floorboards and granite bench tops. Now even then it depends on which niche market you are selling (there is no accounting for taste).

Similarly when it comes to motivating employees, this is exactly what companies do. They over capitalize on benefits, which just don’t matter.

But you have a gym, and pretty coloured offices, and all of these employee discounts. All of which are nice but don’t really make the employees any happier.

Most of you are spending way to much in these areas in an attempt to garner more goodwill and productivity from your people. The point of diminishing returns will be very quickly reached.

Now don’t go screaming down the halls, especially if you supply these benefits. I don’t mean to be inflammatory, however the bulk of the money being spent in these areas is not yielding results. If you were to focus on the core leverage areas on a collaborative level with the business, the value received would far out way the investment. The challenge here is to think creatively.

Alternative rewards

• Working from home, most companies complain about people paying their bills at work, but don't forget about the average of 4 hours per week people are doing on their won computers at home. Technology allows this and what is a fairly minor opportunity can garner significant flexibility from staff.
• Opportunity for learning assignments,
• Project Management opportunities.
• Secondments
• Training and learning
• Fostering great team relationships (this is more than just off-site visits to the cheese factory)
• And so on.

Focus on Leadership.
Remember the number one reason cited for employees leaving organizations is they didn't like their boss. Once you have the basics in place focus on the leadership, right down to the front line.

The best ROI from all your efforts are from your efforts to grow and develop leaders with in the company.

What are your doing to cultivate leadership within your business?

The values of your organisation and those of you leaders will determine the productivity and loyalty of your employees. If you have a great boss, having opportunities to learn and grow professionally and are being paid properly with appropriate conditions, why would you leave?

Techniques of the month: 7 Ways to Show Appreciation to Staff

Think of staff as EVERYONE who contributes to the bottom line!

1. Allow yourself to be impressed on occasion and let your team know.
2. Say, “Please!” Be polite. I have a rule that we are nice to each other. Be beyond reproach, and set the example in this area.
3. Show appreciation for contribution. Encourage people, show appreciation and let them know they make a difference.
4. Keep your team informed at all times, and regularly state the reasons and vision of your business.
5. Get involved and follow up with your people on activities and projects they are working on. Extend this to their personal lives as well. Show you care.
6. Ask your team to be involved. Ask if they can help you. They will relish the opportunity to be involved.
7. Ask, “What’s your plan?” Be interested and learn how they think, rather than tell your people how to do things.

Announcements: New Websites

I have updated and added new wesbsites to better represent the value I am offering.

The DanielLock.com.au address is now a bio site.

A new site for my individual and organisational consulting has been created at www.DanielLockConsulting.com where you can find articles, past newsletters and tips on leadership, strategy and innovation to help individuals and organisations more rapidly achieve their goals.

Daniel Lock Develoments also has a new site at www.DanielLockDevelopments.com, here you can find tips and articles on how to make money from Property Development, get involved with a syndicate and find out about my latest projects.

My blog still exists and will be updated with a new look and feel soon.