How do you impact behavior
Download
1 / 60

- PowerPoint PPT Presentation


  • 77 Views
  • Updated On :

How Do You Impact Behavior?. Impacting Behavior. A Five Step Formula 1. Hire Competent People 2. Tell Them What to Do 3. Tell Them How to Do It 4. Get Them to Want to Do It 5. Reinforce Them When They’ve Done It. Impacting Behavior. Tools Available Compensation Communications

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '' - clay


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Impacting behavior l.jpg
Impacting Behavior

A Five Step Formula

1. Hire Competent People

2. Tell Them What to Do

3. Tell Them How to Do It

4. Get Them to Want to Do It

5. Reinforce Them When They’ve

Done It


Impacting behavior3 l.jpg
Impacting Behavior

Tools Available

  • Compensation

  • Communications

  • Incentives

  • Recognition


Impacting behavior4 l.jpg
Impacting Behavior

Step 1: Hire Competent People

Tool: Compensation

  • Principal method to recruit

  • Aligns company and individual’s long-term objectives

  • The individual’s measurement for long-term progress


Impacting behavior5 l.jpg
Impacting Behavior

Step 2: Tell Them What to Do!

First Tool:Communication

  • Clarifies tasks

  • Provides methodology (training)

  • Can build team spirit

  • Usually a short-term focus (frequency)


Impacting behavior6 l.jpg
Impacting Behavior

Step 2: Tell Them What to Do!(Cont.) Second Tool:Incentives

  • Anything used to change behavior

  • Carrot = positive reinforcement

  • Stick = negative reinforcement (short term effect)

  • Will accomplish specific, short-term (usually 1 year or under) objectives

  • Can add fun & variety to the work-place


Impacting behavior7 l.jpg
Impacting Behavior

Step 3: Tell Them How to Do It!

Tools:

  • Communication (Includes Training)

  • Incentives


Impacting behavior8 l.jpg
Impacting Behavior

Step 4: Get Them to Want to Do It!

Tools:

  • Incentives

  • Communication

  • Compensation


Impacting behavior9 l.jpg
Impacting Behavior

Step 5: Reinforce Them When

They’ve Done It!

Tools:

  • Communication

  • IncentivesAnd . . .


Impacting behavior10 l.jpg
Impacting Behavior

Recognition

  • Establishes Levels of Long-term Performance

  • Gains a Performance Commitment

  • Provides Peer Acceptance & Respect

  • Satisfies Individual’s Status Needs


Impacting behavior11 l.jpg

Tool

Compensation

CommunicationIncentive

Recognition

Duration

Long-Term

Short-Term

Short-Term

Long-Term

however.....

Impacting Behavior

Best Use of Tools


Impacting behavior12 l.jpg

Impacting Behavior

Most of the Time You Want Behavior Changed

NOW!


Impacting behavior13 l.jpg

Impacting Behavior

Your Best Tool for “NOW” is:

INCENTIVES

(Behavior Change through Positive Reinforcement)


Incentives performance improvement programs l.jpg
Incentives:(Performance Improvement Programs)

  • A Marketing Promotion Strategy for Increasing Sales and/or Profits by Influencing Participant Behavior

  • “You Give Me Extra Effort ... I’ll Give You Extra Reward!”


Slide15 l.jpg

Incentives are reinforcers. When a behavior is followed by a positive reinforcer….the behavior increases in frequency, strength or duration.


The majority of companies use non cash incentives all of the fortune 1000 because l.jpg
The Majority of Companies use Non-Cash Incentives... positive reinforcer….the behavior increases in frequency, strength or duration.All of the Fortune 1000, Because:

  • They Work!

  • You Only Pay on Performance!

  • Adds Fun & Variety to the Work Place!

  • Structured Properly, they will Provide a Sound, Measurable ROI!


Traditional incentive uses l.jpg
Traditional Incentive Uses: positive reinforcer….the behavior increases in frequency, strength or duration.

  • Increase Sales

  • Improve Product Mix

  • Increase Market Share

  • Improve Customer Service

  • Improve Quality and/or Productivity

  • Safety Awareness


Additional incentive uses l.jpg
Additional Incentive Uses : positive reinforcer….the behavior increases in frequency, strength or duration.

  • New Product Launches

  • Cost Containment / Suggestions

  • Improve Seasonality

  • New Account Attainment

  • Revive Dormant Accounts

  • Training / Recruiting


Incentives l.jpg
Incentives positive reinforcer….the behavior increases in frequency, strength or duration.

The Target Audience for Incentives should

be the Mid-Range Performers. This is the

biggest audience and can have the most

impact on overall objectives

Usually a company has:

  • 7-10% Top Performers

  • 80-90% Mid-Range Performers

  • 8-11-% Poor Performers (short-term)


Incentives20 l.jpg
Incentives positive reinforcer….the behavior increases in frequency, strength or duration.

Performance with Incentive (Move the Bar)

# of

participants

Performance over time

  • Performance will increase at most levels

  • Variable to market conditions (5-30%+)


Incentive fact l.jpg

Incentive Fact positive reinforcer….the behavior increases in frequency, strength or duration.

If the Activity can be Measured . . . The Activity can be Improved!


Seven steps to incentive program success l.jpg

Incentives positive reinforcer….the behavior increases in frequency, strength or duration.

Seven Steps to Incentive Program Success


Slide23 l.jpg

Incentive Success positive reinforcer….the behavior increases in frequency, strength or duration.

1. Establish Measurable, Achievable Objectives

2. Assign an Appropriate Budget (ROI)3. Develop a Sound Program Structure including all who can Impact the Goals

4. Develop a Good Measurement System

5. Offer Motivational Awards6. Provide Frequent Promotion and Communications

7. Measure Results Against Objectives

And Always . . . KISS (Keep it Simple)


Offer motivational awards l.jpg

Incentive Success positive reinforcer….the behavior increases in frequency, strength or duration.

Offer MotivationalAwards


Slide25 l.jpg

Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

  • Award selection is crucial to the success of the program. After all, if you don’t have awards that motivate, the program will fail.

  • Considerations:

    • Demo & psycho-graphics of your group

    • Income levels

    • What will it take to “Turn Them On”

    • Their experience level in incentive programs

    • Budget needed for behavior change


Four major award options l.jpg

Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

Four Major Award Options:

  • Group Travel

  • Cash

  • Cash Substitutes (Gift Cards)

  • Merchandise & Individual Travel


Incentive awards l.jpg
Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

Group Travel


Slide28 l.jpg

Incentive Awards / Group Travel positive reinforcer….the behavior increases in frequency, strength or duration.

  • Highly Desirable & Promotable

  • Can Create a Team - Family - Loyal Atmosphere

  • Great PR - Top Performers & Upper Management “Rubbing Elbows”


Incentive awards group travel l.jpg
Incentive Awards / Group Travel positive reinforcer….the behavior increases in frequency, strength or duration.

  • Once Attained, Top Performers don’t want to miss “Next Year”

  • Expensive (Few winners, many losers. Can be a “turn-off to 90% of your audience)

  • The best use of group travel is to have a select number of top travel awards combined with other awards that are achievable by your entire audience


Incentive awards30 l.jpg
Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

Cash


Slide31 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

When asked, most people say they would prefer cash over non-cash awards (merchandise & travel). Yet, there is hard evidence that motivating with cash is not as effective as motivating with non-cash awards.


Slide32 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Cash as a Motivator

  • We all like cash, we want cash.

  • We all want more cash.

  • Cash is very desirable. There is little, if any, complaints when cash is given as an award. Cash is what people think they want (for awards) so you are satisfying a perception.

  • Cash is easy to understand & administer


Slide33 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Cash Can be A Strong Motivator If:

  • It is a significant amount

  • It is given separately (not part of a paycheck or normal compensation)

  • It is given out in front of a group

    But cash can have it’s drawbacks..........


Slide34 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Personal Comfort Levels

  • Once reached, cash diminishes as a motivator

  • Can have a negative impact (comfort levels reached sooner!)


Slide35 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

No Memory Value

  • Unless a significant amount (often 10-15% of salary), cash incentives are often not even noticed (especially if part of a normal pay check).

  • Cash incentives are usually used to pay bills, fill the gas tank, etc. Participants can’t remember what they did with the cash.

  • Once cash is spent, it is gone, as is the memory of the reward and how they got it!


Slide36 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Limited Ego Satisfaction/Trophy Value

  • While cash incentives can sometimes have ego satisfaction, it has little, if any, trophy value

  • Cash is usually used to pay bills (no permanent symbols of success).


Slide37 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Confused with Compensation

  • Cash is lost in the mainstream of daily bill paying. It’s identity is lost.

  • Cash can be viewed as an entitlement and can be very difficult to take away (if used for any length of time.)


Slide38 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Guilt

  • As stated, most often cash is used to pay bills because if not, the participant is likely to feel guilty.

  • Non-cash awards relieves this “guilt syndrome”


Slide39 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Limited Promotability

  • Cash is just “more of the same”

  • It is very difficult to promote or glamorize cash unless it is a substantial amount.


Slide40 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

No Family Involvement

  • Cash rarely makes it home as it is generally used to pay bills.

  • It is quickly spent on routine things and then forgotten

  • There is no family involvement in award selection or goal setting. (Family involvement is a powerful motivator)


Slide41 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

No Goal Setting

  • Cash has little, if any, goal setting power because...

  • Any Amount is OK.


Slide42 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

Results

  • Cash is just “more of the same”. It is an ever-present media of compensation.

  • Where cash is not already providing sufficient motivation, merely increasing the amount is not enough to provide additional stimulation.


Slide43 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

  • If cash is such a great motivator, why aren’t they selling more?

  • Cash vs Non-Cash Case Studies Follow………..


Cash gulf oil case study l.jpg
Cash - Gulf Oil Case Study positive reinforcer….the behavior increases in frequency, strength or duration.

PROGRAM

PERFORMANCE

Sales

No Incentive

Sales

Traditional Non-Cash Program

Region 1 (Control Group No-Incentive)

Region 2 (Traditional Non-Cash [merchandise] Program)

Region 3 (Non-Cash [merchandise] Awards-Double Value Region 2)

Region 4 (Cash Awards-Equivalent to Region 2)

Region 5 (Cash Awards-Less than in Region 2)

Region 6a (Cash Awards-Twice value of Region 2)

Region 6b (Cash Awards-Four Times value of Region 2)

Region 6b (Cash Awards-Six Times value of Region 2)


Cash gulf oil case study45 l.jpg
Cash - Gulf Oil Case Study positive reinforcer….the behavior increases in frequency, strength or duration.

Gulf Oil-Three Principal Findings

  • Any incentives are likely to produce some results

  • Doubling the value of merchandise awards does not automatically double incremental performance

  • Cash does work...but it can take up to six times as much to do the job of non-cash incentives


Cash federated insurance l.jpg
Cash - Federated Insurance positive reinforcer….the behavior increases in frequency, strength or duration.

  • Although non-seasonal products, sales dropped drastically every May. May had never reached 5% of their annual volume. A non-cash incentive program was run for the month of May. It was concepted well, promoted effectively and produced 16.4% of that years volume! Sales people responded to $200,000 in merchandise awards while earning $1,000,000 in additional commissionthat was there all the time!


Cash goodyear case study l.jpg
Cash - Goodyear Case Study positive reinforcer….the behavior increases in frequency, strength or duration.

  • 900 dealers participated in the program

  • Those dealers who received cash bonuses boosted their sales a successful 22% over the previous six months

  • Those dealers who received non-cash awards boosted their sales 32% - (46% greater than cash!)

  • For every dollar invested in the program, Goodyear got back 80 cents from the cash group and $1.31 from the non-cash group


Slide48 l.jpg

15 positive reinforcer….the behavior increases in frequency, strength or duration.

21

1

16

1

10

Cash Districts

Non-Cash Dist.

Cash - Mazda Case StudyThree month test on truck sales (two test groups) - 32 districts offered cash and 32 districts offered non-cash

Over Objective

Even with Objective

Under Objective

  • Non-cash districts @ 115.7% of goal (cash districts @ 102.1%)

  • 21 of 32 non-cash districts exceeded goal (cash districts 15 of 32)

  • All sizes of dealerships in non-cash groups outperformed cash groups


Slide49 l.jpg
Cash positive reinforcer….the behavior increases in frequency, strength or duration.

The American Compensation Association surveyed

1,600 companies for a White House conference on

productivity. Some of their findings were:

  • Non-cash awards offered a 3:1 return on investment when compared to cash

  • Each dollar of increased performance costs about 4 cents in non-cash awards and 12 cents in cash awards

  • Successful non-cash programs cost 3 to 5% of an employees annual compensation while successful cash programs must equal 5 to 15% to be effective


Incentive awards50 l.jpg
Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

Cash Substitutes


Cash substitutes l.jpg
Cash Substitutes positive reinforcer….the behavior increases in frequency, strength or duration.

  • Gift Cards/Certificates

  • Typical Debit / Credit Cards (spend anywhere - like cash)

  • Select Debit / Credit Cards (limited use)

  • A Small Step above Cash as a Motivator (No goal setting and any amount is ok)


Incentive awards52 l.jpg
Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

Merchandise & Individual Travel


Slide53 l.jpg

Merchandise / Individual Travel positive reinforcer….the behavior increases in frequency, strength or duration.

  • Highly Desirable & Promotable

  • Affordable (many winners, few losers)

  • “Something Different” (breaks through established comfort levels)

  • Memory Value (positive, long-term reminder of the sponsoring company and how the award was won)


Merchandise individual travel l.jpg
Merchandise / Individual Travel positive reinforcer….the behavior increases in frequency, strength or duration.

  • Recognition & Trophy Value (permanent symbols of success)

  • Instills Goal Setting

  • Can provide a Wide-Range of Choices

  • Not Confused with Normal Compensation

  • No Guilt

  • Family Involvement & Support

  • Promotes Goal Setting


When choosing awards ken blanchard one minute manager l.jpg
When Choosing Awards / Ken Blanchard positive reinforcer….the behavior increases in frequency, strength or duration.(One Minute Manager)

Incentive Awards

“So often we assume that we know what motivates people. In reality all we really know is what motivates ourselves.”


Slide56 l.jpg

Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

“If you give someone a prize, such as a trip to Hawaii, and that person really would rather have a new set of golf clubs, you have missed the mark.”


Slide57 l.jpg

Incentive Awards positive reinforcer….the behavior increases in frequency, strength or duration.

“The more individualized an incentive program, the more effective it will be. My seventh law is . . . What motivates people is what motivates people!”


Slide58 l.jpg

The best Motivator is to provide participants a wide range of award choices …. so they can choose awards that excite them Individually. An Awards Catalog or Brochure works well for this purpose:

Incentive Awards

  • Must be top quality-name brand awards

  • Should have a mix of merchandise & travel

  • Must have a Wide-Range of Values

  • Must be competitively priced

  • Award fulfillment must be world-class


Action steps how we can help l.jpg
Action Steps- of award choices …. so they can choose awards that excite them How we can Help

Program Development

  • Define Program Objectives

  • Establish a Program Budget

  • Provide Information

  • Concept Proposal

  • Final Proposal

    • Budget and ROI Analysis

    • Communications Plan and Timetable

    • Administrative Plan


ad