That was over a decade ago. I was one of 7 senior proctors who lived in Memorial House at Choate in 97-98′. Dan was a freshman who we were lucky enough to have in the house. I haven’t seen him since I graduated that year. This morning I caught a clip of him on the Colbert Report talking about the company he co-founded, Indabamusic. You might have heard of it. They’ve built a global community of over 125,000 musicians in 170+ countries. Incredible. So that’s what you’ve been up to, Dan. A very humble hat tip to you…
This Building43 video is a goodie. Robert Scoble does a quick 2 minute interview with Isaac Mogannam, the owner of Phat Philly Cheessteaks in the Mission District in San Francisco, CA. If you’re a restaurant or small business owner trying to figure out how to make the web work for you in your local area, this short video is worth your time.
According to Isaac, since opening a little less than a year ago, Phat Philly Cheesesteaks has gotten around 275 mostly positive reviews on Yelp and he says that it’s had a major impact on his business. He estimates that around 40-60% of his new business is driven by Yelp (woah!), and because of the size and popularity of the site, people searching for food in their local area usually find his restaurant (and everyone’s reviews) on Yelp before they find the restaurants website. That’s an important insight for any small local business – people are using the web to find out what’s good in their area and, because of the way search works, their first interaction with your brand online is often NOT your website. Instead it’ll be the popular social sites where all the chatter is happening, so you can’t afford to ignore what people are saying about you online. Because people’s first impression of you happens where the chatter is, ignoring the conversation is a big mistake.
In this interview, Isaac talks about how he’s embraced Yelp, started listening, joined the conversation and used it to his advantage to quickly build a local (and loyal) customer base. Not surprisingly, he says he did it “one customer at a time”.
Traditional rewards aren’t always as effective as we think and business as usual needs a new system of operating that’s more closely aligned with human nature. That’s Dan Pinks argument in a nutshell, and I think his case is strong. For those of you with some time, I’d highly recommend watching the full video. For those of you with only a few minutes, I’ve highlighted some of the main takeaways below. Enjoy.
The Three Elements Of The New Operating System
In this TED talk, Dan argues that there’s a mismatch between what scientists know about motivation and how businesses today reward their workers, and that if we look closely at the data gathered from studies on what truly motivates people it’s clear that we need a new paradigm. Here are some of the best nuggets…He says:
“…too many organizations are making their decisions, their policies about talent and people, based on assumptions that are outdated, unexamined, and rooted more in folklore than in science…if we really want high performance on those definitional (cognitive) tasks of the 21st century, the solution is not to do more of the wrong things. To entice people with a sweeter carrot, or threaten them with a sharper stick. We need a whole new approach
….the scientists who’ve been studying motivation have given us this new approach. It’s an approach built much more around intrinsic motivation. Around the desire to do things because they matter, because we like it, because they’re interesting, because they are part of something important. And to my mind, that new operating system for our businesses revolves around three elements: autonomy, mastery and purpose.
(1.) Autonomy – the urge to direct our own lives.
(2.) Mastery – the desire to get better and better at something that matters.
(3.) Purpose – the yearning to do what we do in the service of something larger than ourselves.
These are the building blocks of an entirely new operating system for our businesses.”
After presenting the findings of studies performed by leading scientists and economists at the London School of Economics, Dan sites some examples of how this new work paradigm is being put into practice in leading firms:
Worker Autonomy, 20 Percent Time and Innovation
“20 Percent Time…Done, famously, at Google. Where engineers can spend 20 percent of their time working on anything they want. They have autonomy over their time, their task, their team, their technique. Okay? Radical amounts of autonomy, And at Google, as many of you know, about half of the new products in a typical year are birthed during that 20 Percent Time. Things like Gmail, Orkut, Google News.”
Results Only Work Environments (ROWE)
“…an even more radical example…something called the Results Only Work Environment. The ROWE. Created by two American consultants, in place at about a dozen companies around North America. In a ROWE people don’t have schedules. They show up when they want. They don’t have to be in the office at a certain time, or any time. They just have to get their work done. How they do it, when they do it, where they do it, is totally up to them. Meetings in these kinds of environments are optional.”
What happens? Almost across the board, productivity goes up, worker engagement goes up, worker satisfaction goes up, turnover goes down.
