Summary

Modern research has uncovered a third fundamental motivation: intrinsic / learning / motivation 3.0. In Drive, Daniel Pink explores the mismatch between what science now knows and what business does, insisting on traditional carrot-and-stick rewards. While this works for algorithmic jobs, heuristic work (requiring creativity) is increasingly common in modern society where the carrot-and-stick has 7 key flaws.

Self-determination theory states that autonomy is an innate human desire. Work needs to allow for more autonomy. Optimize conditions for flow and the pursuit of the mastery asymptote. Businesses should be increasingly purpose-driven to increase intrinsic motivation.

Key Takeaways

• Identify Type I, Type X individuals (we vs. they, pay vs. purpose)
• Self-determination theory. Seek autonomy and foster it
• Leverage the Sawyer effect to turn work → play, avoid turning play → work
• Be cognizant of the 7 flaws of motivation 2.0
• Look out for more *purpose-*driven companies as boomers age

Notes

Part 1 - A New Operating System

1 The Rise and Fall of Motivation 2.0

• 3 fundamental sources of motivation:
  • Biological/1.0 (food, sex)
  • Extrinsic/environment/2.0 (pay, social)
  • Intrinsic (learning)
• Open source is a brand new business model that leverages intrinsic motivation
• New purpose-maximizing (not profit-) businesses, eg. L3Cs, B Corps
• Economics is a behavioral science: we act irrationally (cognitive biases)
• Carrot + stick works well for algorithmic tasks but not heuristic ones (creative)
• Vocation vacation

2 When Carrot + Stick Doesn’t Work

• Rewards (money) can turn play in to work
• Applies especially to heuristic (creative) work, eg. the candle problem
• Sawyer effect: Practices that can either turn play into work or work into play
• Intrinsic goals always good (don’t want to cheat yourself) vs extrinsic goals
• “Goals may cause systematic problems in businesses due to narrowed focus, unethical behavior, increased risk taking, decreased cooperation, and decreased intrinsic motivation”
• The stick doesn’t work either, eg. kindergarten late fine → 2x more late pickups (moral → transaction)
• Principal agent problem: Conflict of priorities between principal and agent (work vs pay), pay becomes expected for chore
• Stock market projections leads to short-term incentives, decreased R&D, decreased returns
• 7 flaws:
  • Extinguish intrinsic motivation
  • Diminish performance
  • Crush creativity
  • Crowd out good behavior
  • Encourage cheating
  • Addictive
  • Short-term thinking

2 When Carrot + Stick Works

• Does work for algorithmic jobs because there is little play / intrinsic in the first place
• Rewards can still work in creative settings when learning can still occur or feedback is provided
• If-then reward: extrinsic reward offered only after task is complete (unexpected)
• Consider non-tangible reward (compliment)

3 Type I and X

• Self-determination theory: 3 innate human needs: competence, autonomy, relatedness
• Type A vs B: originally to separate those with higher cardio disease (stress, drive)
• Type I vs Type X: intrinsic 3.0 v. extrinsic 2.0

Part 2 - The Three Elements

4 Autonomy

• Humans are playful, experiment by default
• Need autonomy over task, time, team, technique
• Fed Ex days: one day to autonomously work on some new side project at work
• Zappos: pays people upon leaving company as way to weed out Type Xs
• “Human nature, if it ever recognizes itself, will become more autonomous“

5 Mastery

• Flow
• Growth vs fixed mindset
• Performance vs learning goal: getting an A in French vs learning to speak French
• Grit: perseverance and passion for long term goals
• Flow is a necessity for life. Lack of flow can lead to anxiety and lethargy
• Mastery asymptote: can never truly reach mastery, both frustrating and alluring

6 Purpose

• Aging boomers (largest generation) questioning purpose → more purpose-driven worldwide focus
• They companies vs we companies
• Central idea of this book: The mismatch between what science knows and what business does

Part 3 - The Type I Toolkit

Type I for Individuals

• Take 5 years off retirement and sprinkle throughout career in 1-year sabbaticals