Higher pay leads to worse performance

Should we encourage people to be creative?

Most people would say ‘yes’.

Should we reward people for being creative?

Again, most people would say ‘yes’.

The trouble is that financial incentives don’t work for creative tasks. When we are being rewarded for doing better, we tend to get trapped in our existing ways of thinking and pursue solutions within our perception of the ‘rules’. But creativity is so often about breaking the rules – about thinking outside the box.

In the video clip below, Dan Pink cites researchers from the Fed Reserve finding that while tasks involving only mechanical skill would yield better performance with higher rewards, but where “even rudimentary cognitive skill” was involved, higher rewards led to people doing worse. Low and medium rewards yielded the same level of performance but high rewards led to worse performance.

Higher pay makes you work harder. But doesn’t make you better.

Higher pay leads to worse performance if you have to think.

It might have something to do with functional fixedness. Stemming from gestalt psychology researchers, this looks at how trapped we are at thinking of something as having a single function. Like being able to use a box as a platform rather than just as a box. Functional fixedness, it seems, is exacerbated by extrinsic rewards.

Maybe it’s a good thing that Australia’s Prime Minister has decided to not give himself a pay rise.

High performance comes from work where we enjoy autonomy, where we can experience a sense of mastery, and where we can feel a sense of purpose.

Geniuses tend to be motivated by intrinsic motivators – the sense of mastery rather than the accumulation of money. After all, if you’re focused on the reward, it’s hard to be focused on doing the task in front of you as well as you can.

It’s like the story of the man who was so busy chopping down a tree that he never thought to take a moment to sharpen his axe. And that guy certainly wouldn’t have time to put down his axe and head to the store to pickup a chain saw.

And that’s like the girl with the Rubik’s cube – who struggled whether to give up her completed side that was stopping her from solving the puzzle.

When we’re so busy doing, it’s really hard to do well.

How well does your current work line up?

Are you giving yourself enough time to be the genius that you could be?

Isn’t it just about experience?

Some people say that you just have to work harder to get better. It seems to make sense, and appeals to the virtue of ‘hard work’.

But the truth is that it’s not that simple, is it?

There are some people who work really hard – who spend hours practising or playing – but who don’t get better. Maybe you were one of them.

Sometimes we can do things a lot and not get better at all. In fact, sometimes we get worse!

When I was playing tennis as a child, I would hit the ball and play tournaments and show up to expensive coaching sessions. And at my best I consistently got mediocre results.

The trouble was that I didn’t get feedback. I was practising but I wasn’t doing it the way I needed to if I wanted to actually get better. Instead, I rehearsed the skills I had over and over until I could play ‘well enough’. But I didn’t get better than that.

Nobody told me what I needed to do and I didn’t figure it out for myself. Maybe I could have but I didn’t.

As you read this, you have been walking for a long time. Yet how much better at walking are you today from last year?

Deliberate practice goes beyond just doing the same things over and over again, and instead is focused on actually getting better. It’s about finding ways to push yourself – to make your best even better – and it’s not always easy.

Sometimes you might need to invent ways to challenge yourself.

Because that is what the best of the best will do.

K. Anders Ericsson on “What it takes”

The Cambridge Handbook of Expertise and Expert PerformanceAs I was rereading the Introduction of “The Handbook” this morning, it occurred to me how remarkable it is that there is actually a formal domain of expert performance at all.

Being an ‘expert’ is simultaneously honoured and stigmatized in much of the world. In some parts of the world excellence has even been systematically repressed. And yet, we still want to know “what it takes”.

Successful people spontaneously do things differently from those who stagnate. In particular, they have different practice histories. We consistently see that they engage in “deliberate practice” – they work to innovate the way they do what they do.

You can read more about what the lead editor of The Handbook has to say in an interview with Fast Company here.

Being excellent isn’t easy. But it is a lot more simple than you might believe.

Doing whatever it takes

Being the best demands a lot from you. You need to invest a lot of time, energy and effort in the domain, not just playing around, but focusing your mind on how to get better.

Day after day. Week after week. Month after month. Year after year.

But the people that get really good don’t like doing the deliberate practice any more than you do. And they don’t get better faster than you do. Nobody “likes” doing deliberate practice: To be successful, you just need to do it.

And the people who get really successful are the ones who will often do more practice than you do to get to the same standard.

Weird, eh?

So it’s really important to be able to master our state. To master our emotional, physical and mental condition – so that we can perform at our best when we need it.

The good news: That’s something we can train for.

The Power of State

Our next session for Awaken Your Genius will be next Wednesday night, 16 September. I will be presenting all new material. And I’d really like it if you could join us.

If you could remember a time when you were at your best, you might notice that you thought, felt and moved in a very specific way. Some people could call this a ‘genius state’ or a ‘flow state’ or ‘being in the zone’ – when your mind and body are helping you achieve at your best.

But sometimes, we’re not. Sometimes we’re in the “wrong” state. In fact, many of us spend a lot of time not being at our best.

What if we could change that? This time, I want to focus on “state”. We’re going to explore some exercises and techniques that can help get you out of an unresourceful state and into a state of mind that can help you perform at your best.