Managing for Creativity
theodp writes "After seeing some of the ideas management comes up with as a result of reading the Harvard Business Review, you may be tempted to hide their copies. But make sure they see this month's Managing for Creativity by Dr. Jim Goodnight, the still code-cranking CEO of SAS, the world's largest privately held software company." From the article: "Many academics and businesses have made inroads into this field. Management guru Peter Drucker identified the role of knowledge workers and, long before the dot-com era, warned of the perils of trying to "bribe" them with stock options and other crude financial incentives. This view is supported by the research of Harvard Business School's Teresa Amabile and Yale University's Robert Sternberg, which shows that creative people are motivated from within and respond much better to intrinsic rewards than to extrinsic ones."
Then along came "global resourcing" and the concept of "bribing" knowledge workers at all became unnecessary and said knowledge workers learned to be grateful that they still had a position at all.
Seriously, in a world where any and every position has, is or will eventually be outsourced, the entire concept of "bribing" an employee is anachronistic. Maybe if you have the name recognition of a Shawn Fanning and someone wants your name to bootstrap their venture capital process, but not if you're Joe-Average-Buying-Four-Dollar-Milk guy.
Today's "crude financial incentive" is "not being downsized".
And to continue harping on the ridiculousness of such an article in an outsourcing world, I have to ask - when you're outsourcing for one tenth the salary, do you really expect any of the outsourced people you're managing to be "creative"? I've worked with a number of them and however they may be in their personal life, when it comes to the job they're paid for, they are anything BUT creative.
This guy is one of those idealistic dreamers who has the misguided notion that you can employee people, treat them well, encourage them to be creative and non-comformist and original and not ditch them for the lowest bidder and somehow run a successful company in the long term. Learn a thing or two from today's top public-CEOs and start laying people off. Be a man! Send out some reduction notices! Cut some salaries! Freeze hiring and raises across the board! Freeze available training and education! Put the fear of outsourcing into your subordinates or you're going to end up on the garbage heap. In fact, it is downright un-patriotic to treat his employees like he is doing and promote those communist labor-friendly, creativity-inspiring warm-fuzzy propaganda ideas.
Completely off topic - what a name...Jim Goodnight! I can see the Abbot and Costello sketch for it, now...
The article is really a reasonably interesting puff piece for SAS. While SAS seems like a very cool company (I'm guessing Google modeled themselves partly after SAS), the article stresses the reasons why you should offer lots of intrinsic perks (such as a ton of onsite services, such as medical staff, massages, dry cleaning, haircuts, and auto detailing), and doesn't talk much at all about avoiding extrinsic perks. So, if you are hoping to find the juicy bits about why stock options aren't very effective, well, don't look here.
Incidently, if you saw the 60 Minutes story about SAS, you can probably save yourself the time of reading this article. There doesn't appear to be much that wasn't covered on 60 Minutes. However, if you haven't heard of SAS, it is a very interesting summary. Perhaps this is a more accurate teaser, quoted straight from the article:
Based in Cary, North Carolina, SAS has been in the top 20 of Fortune's 100 Best Companies to Work For list every year it's been published. The employee turnover rate hovers between 3% and 5%, compared with the industry average of nearly 20%. The governments and global corporations that rely on SAS's sophisticated business-intelligence software are overwhelmingly satisfied: The subscription renewal rate is an astounding 98%.
Rob
But creative types would much rather work for a company that tried to 'bribe' them with expensive stock options then simply paid them a sallary and kept all the profits from their work for themselves.
autopr0n is like, down and stuff.
SHOW ME THE MONEY!!
How true this is. I know, for myself, if you want me to work at 9am, you will not get the same productivity as if you let me work at 9pm. I was a night owl in highschool, a night owl in college, and I still am one today.
I have had some jobs, where I did nothing more than veg out at 9am, waiting for the coffee to kick in. It was a waste of time. The company paid me for those hours of morning work, and got very little back in return.
But just after lunch, I would have much more energy. The brain would start working. I was very productive. And what sucked about it was, by the time 4:30pm came, quitting time, I was deep in thought and work, and I did not want to leave. I was pumping out great results. If I was working on a database, it would be around this time that everything was comming together in my head, that I was able to play with lots of ideas at one time, to visualize what I was doing. Those hours from noon to 4:30pm flew by too fast! Contrast to the hours of 9am, which every second felt like an hour.
If only the managment would have asked me, when is work the best for you. I would have told them, let me start at noon and stay late. But they did not want to pay overtime, they had fucked up rules about who could stay on company property after a certain hour, so everyone had to go home.
Rosco: "If brains were gunpowder, Enos couldn't blow his nose."
A statement like this should be backed up with some facts. Otherwise it's just slander. HBR is a quality publication.
I do not deploy Linux. Ever.
Management sucks the creativity right out of you
You can keep it "intrinsic", if you want. Just go around with security, and take it from managers' wallets. That's totally cool with me. Get it on film if you have to beat someone's ass, and I'll show it at my company-parties in distant cities while I'm attending a "conference".
If the company starts to succeed, we'll talk about "intrinsic" royalities.
If it fails, I'll just take my $4 million severance package, and go about my way.
Thanks.
"This view is supported by the research of Harvard Business School's Teresa Amabile and Yale University's Robert Sternberg, which shows that creative people are motivated from within and respond much better to intrinsic rewards than to extrinsic ones.""
That's because most creative people are introverts.
We made the decision to go with a knowledge based economy a long time ago. It was forced on us by the realization that trying to protect the existing manuufacturing based economy would be impossible.
Finally, the news is filtering down to those who make the day to day decisions. Recent best sellers have included: "The Innovator's Dilemma" by Christensen and "The Rise of the Creative Class" by Florida. (Our local city council has discussed the principles outlined in the latter work with regard to the preservation of old buildings. Since many of them are neanderthals, I take this to indicate that the knowledge is filtering down.) There are many institutes studying innovation. Society as a whole is starting to 'get it'.
Now we need a study about how much money a phb loses his/her company every year. It's easy to measure the cost of postage and long distance phone calls and PHBs like doing that. What we need is a way to measure the cost of PHB induced inefficiencies. Once we figure out how to do that, things will really start to improve.
Shorter version:
- pensions cost most than an on-site masseuse
- the amount of salable intellectual property generated by your employees remains constant regardless of compensation. Just make sure you lock it up in their contracts!
I know businesses exist to make money, but when I was last interviewing I viewed lots of in-office perks as a big strike against prospective employers. It's great if there's a foosball table in the break room, but not if the payments on it come out of my salary.
Even worse is the likelihood that companies who pay a lot of lipservice to maximizing employee creativity aren't looking for innovations within their area of business expertise, but rather new revenue streams. All too frequently contracts at these places give the firm rights to all of your projects and ideas, even if they're not developed at the job.
*Instrinsic* rewards are simply doing the job for the love of it, anything else, whether financial based or massages, free drinks, etc are *extrinisic* rewards.
The goal to high creativity, they say, is to try and de-emphasise extrinsic rewards linked to performance and instead create a culture of individual and group co-operation and autonomy (incl. slack time).
There must be equity in the workplace for this to occur as well, otherwise workers will feel exploited.
Sure, stock options and bonuses are great and all but I've found I'm more motivated with the promise of free pizza for lunch.
"If you are a dreamer, a wisher, a liar, A hope-er, a pray-er, a magic bean buyer
Whatever. Right. We creative people have no need of food, or bling, or wheels. Look. While creative people might be insulted (uh, they might say they're insulted), what we're really looking for is CREATIVE bribery. If the wife just drops her clothes, all she's getting is a sick look on my face. However, if she walks up to me, hands me a pint while wearing that cute red number she bought for this sort of thing, drops the dress, and has something kinky on underneath, then turns to show some tail and gently bends over, placing her hands on the kitchen table, I might just have that same sick look on my face, but she might also just get what she was originally looking for, especially if she laced dinner with some ED medication (for recreational experimentation only, of course), and waits until I'm done with my brew. Insulted? Sure. I'll get over it, though.
Friends help you move. Real friends help you move bodies.
Never forget: 2 + 2 = 5 for extremely large values of 2.
Task-oriented activities are suited to a typical corporate management model. You can monitor their progress set effective deadlines, describe them on papaer and outsource them.
Creativity (including intuative thinking) does not respond well to any of these. Intuition happens on its own schedule and attemptng to drive it harder kills it. It has been often demonstrated that people under stress/pressure are less likely to find innovative solutions. Threats, direct (fix it this week or you're fired) or implied (downsizing/outsourcing) work against innovation.
I know that from my own experience I very rarely make breakthroughs while doing what management would consider "work". I have figured out many things while doing something else: having a crap or a shower (no, not simultaneously), fishing, shooting hoops... perhaps they should pay me to do more of these.
I don't know much about SAS, but from what I understand they are a privately owned orgainsation that really does take care of their employees. This must be a far lower-stress environment that a corp with a quarter-by-quarter driven approach that treats their employees as expenses/resources.
Engineering is the art of compromise.
I like intrisic rewards that can be direct-deposited .
Charles Jo
P.S. Carrots are good for your creative eyesight & our bottom line!
God: When you do things right, people won't be sure you've done anything at all.
"Management sucks the creativity right out of you"
With a guy. How would you know?
Ok, you are my manager. Here's where you can start...
1. Judge me by my work, not be how many hours I put in. You wrote the job description - if I can do the work you need in X hours, why should I hang around my cubicle for X+n hours, especially when I use 'extra' time to try and figure out better ways to do our job, which you ignore?
2. Substance trumps form. This applies to not only work, but policy enforcement. Telling me that we use XX product, and because XX cost $YY and took KK consultants ZZ years to implement, it can't suck simply tells me the management team didn't know what kind of pit they were digging. My advice, to get out of the hole - stop digging first!
3. I'll dress the way you want me to and conduct myself by your standards of 'professionalism', as long as you don't treat me like a three-year-old until I give you a reason. Then, just fire me - don't fsck with me.
4. Don't fire people for exchanging their own information - i.e., if we want to talk about salary at lunch, that is our business, period, especially if we aren't on company property.
5. Recognize the utter stupidity of office politics, and no, that jerk from Finance will not become less of a jerk if I learn to golf so I can make nice-nice with him. In fact, it will get you sued and me fired when I put a five-iron through his thorax.
6. Keep the HR group away from me. I do NOT WANT another flier about the suicide hotline, nor do I care about our new marketing effort in Outer Namibia, and as far as Frank Jones, the new VP of Operations, New York, is concerned, re: promotion, well, good for him - I'll never meet him, and I don't think he wants to hear about my promotion either. Nor do I want to know about the class offered for "all professionals" held in San Francisco, that I can't go to because I am either not high up enough, or I don't sell for a living. You expect my work to be relevant to what we do. I expect the same sense of appropriateness and relevance as you do.
7. I realize we have a fiduciary duty to our clients. If you are really worried about my taking advantage of proprietary information, by all means, call the feds. In the meantime, my wife's 401K is NONE OF YOUR BUSINESS - we have no say in how it is invested, the trustee handles that. You should know that, being a large international bank.
8. Before you give me any static about how overworked any/everyone is, and how short on resources we are, how about firing that useless sack of cr@p you complain about so loudly at after-hours work functions? I know he's been here 15 years, and it would make upper management wonder "how did this bag of cr@p last so long?" when you have to justify canning the id10t, but trust me, it will be worth it.
9. Offering benefits and then implementing workplace policies that make it impossible to use them is the same as not offering them, except a whole lot more annoying. ("Gee, we would pay for your night-school classes, but we'll need you to work overtime for the next few months, then as needed after that - you're a professional, so I know you'll get the job done. What? No, we don't pay overtime or comp time, are you kidding?") Odd, how this sudden overtime need hit after I applied for tuition reimbursement...
10. Mandatory fun isn't.
Please note: The above have been aggregated from several different employers, so if you happen to know who I work for, and are a member of management, read #11...
11. Respect my privacy outside of work. Unless I slander you, flaming me at work over what you think I may have implied is unprofessional - yes, that word can apply to management too!
The really valuable people create whatever happens, their work is produced despite whatever conditions are imposed not in response to positive ones. There is little or no need to court them with stock options or anything other than that. At best what they want is for people to stay out of their way but even then, they'll work around that if the spark is there. Anyone who feels otherwise, "fair weather" innovators, doesn't come into the band of particularly valuable and can be easily replaced. Simple.
A classic book on this topic: "Punished by Rewards" by Alfie Kohn. Broadens the scope to discuss parenting by carrot & stick as well as corporate management.
Robert Epstein (last to receive a Ph.D. from B.F. Skinner) lists four strategies for generating creative output. These are
Sometimes, though, I wonder about the opposite--how can I learn to quit being "creatve" and just get the damn job done? It's not that I ever get any original brilliant ideas anyway--all really great ideas I have had, I've found out were conceived by somebody else before me.
Anyway, here goes:
Capturing creativity-- Rolf Lindgren, cand.psychol
Having spent the day looking at the R project and all its package, I think the Open Source R mops the floor with SAS products in terms of creativity.
I just find it odd to hear SAS management talk about creativity vs. says Google, which at the moment seems to be a very creative company.
Creativity is the engine that drives progress. Greed is the engine that drives business. Is it any wonder that the greedy are trying to exploit the creative. Of course there is no need to give stock options to those who actually create the products, doing that would only encourage them to move on at some point. Make them chose between a decent work enviroment or money. They will chose the enviroment most of the time. Is there really any reason a person can't be creative and own a piece of what they create? Capitalism without everyone owning capital is like democracy without everyone having the vote.
When I RTFA, I noticed something that struck home - the author discusses the difference between a company being held 'accountable' by customers vs. shareholders. I've frequently seen good managers make decisions they knew were bad, because the stock market is fundamentally concerned with the lowest common denominator - it doesn't matter if you can make more money for the year by taking an action that will cause earnings to miss expectations this quarter, but the markets will punish you. Your customers, however, only care about how good your product is - you have to make the best decisions you can at every step, or your product will fail. Look at large software firms who cling depserately to a shipping deadline... and ship buggy product. Before you mod this offtopic - creatives are about doing a good job. There is a conflict doing such a job in a public vs. private firm. The article points this up, and I emphasize it. Go redundant!
It's interesting that one of the most highly regarded "perks" in every survey of geek staff I've seen for years has been flexible working hours.
At my current employer, we have quite a clever policy: the rule is you have to be in the office for at least 5 hours between 9am and 6pm every day, but other than that, you can work your 37.5 as you see fit, with common sense applying when it comes to organising meetings and the like. What this means is that you're guaranteed to be in the office for at least an hour of overlap with any of your colleagues in a given day, so you never miss someone completely. However, you can effectively take a half-day off without using leave, or go in before the morning rush and then leave mid-afternoon to pick the kids up from school, etc.
I'd say most of the guys' typical hours are somewhere between 9:30-5:30 and 10:30-6:30. We also have quite a few habitual early starters and a few habitual come-in-at-lunchtime guys. There are even some guys who change quite radically from week to week or even day to day, such as the guy next to me whose fiancee works shifts at a hospital, or one of the girls who finishes early-late-early-late to alternative picking her son up from school with her husband.
This is a great arrangement, and it was interesting that when we were bought out by a US corp a few months back, this was one of the Big Things everyone was adamant we would keep in the new contract. (We collectively made them rewrite it so we could.) Of all the other "perks" brought in by the corp, none has anything like the value of this one, and I'm not sure I actually use any of the others.
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
I'm going to expose you for the douchebag you are.
What an insult to Google to compare SAS to it!
SAS is a piece of shit. It's the Microsoft of the statistical world -- they have lots of money to throw around to get their name in journals and sponsor conferences but at the end of the day, the only reason it's still used is companies don't want to migrate from their existing database software. Ask any PhD in statistics, if they were given the choice, their company would use S-PLUS or R.
I think this can work in some environments. Take me, for instance, who works for a non-profit DoD contractor. I get paid a decent salary and I am encouraged to be creative in my free time. Since the extra money from our contracts is rolled over into lab investments we have a significant pool of resources to draw from to be creative. I am allowed to use that money to buy things to experiment with. If I get an idea, I can try it out. That, for me, is fun. Not all of ideas work, but it sure is nice to have the freedom to express them.
I do, however, recognize that this is a fairly isolated case where "profit-whoring" is nonexistent.
Oh well...
I can't agree with this more. In my job where I actually use both sides of my brain, creativity just doesn't have a schedule. The best thing I could do is set myself up for a "creative spark" -- surfing the web for things I like, or look at what the latest, although surfing can only do so much.
Need a color? Try 100 random colors
... but damn, I would kill for his name at any party I've ever been to.
Her: Hi, I'm Stacy...
Me: Hi Stacy, I'm Mr. Good Night
**slap**
Ok, maybe not.... but the thought of it is cool.
"The need to build the internet comes from something inside us, something programmed... something we can't resist."
meaning that they get paid by tax money.
That definitely has to be a job where the rewards are intrinsic to the creation of knoweldge, because the external rewards sucketh and getting grants and jobs is even harder.
Time and Money which are the same thing are also obviously the most important thing to any employee. This guy does not understand human nature. I make 50K as a software developer, and after taxes I only keep 30K. I have no home, I have no car, I have no stock options. GIVE ME A FUCKING BREAK. I will soon have the money for a RV, and I will leave the U.S. I will run my business from Mexico in the next year or two from my RV so I won't have to work 60+ hours a week. I am tired of working for a bunch of Fascist, Socialist, and Communist that want to spend my money and print even more. I will build a weapon system to fight back against the World Nazi Police state and then you can all Nazi/Fascist can kiss my freedom loving ass.
People still want and need bonuses and rewards, but I've found if the management thinks of money as a bribe then they think they are entitled to intrude on their people. Consider money the reward for success, not the price for someone's life-hours.
SAS sounds like it has the idea for sustainability in knowledge based work. Respect the people with 16-20 years schooling and years of experience, the ones you worked so hard to recruit and interview. Require results and give them responsibility and authority. And the icing on the cake - realize that smart people have intellectual needs as well as personal and family needs.
Creative genius, I tell ya.
Give a man fire, and you warm him for the night. Set a man on fire, and you warm him for the rest of his life.
Managing for creativity requires deep recognition of the fact that people are creators. Not only that, but the constant change of circumstances should be embraced as a fertile ground for creativity. And finally, it is very important to realize that the way people perceive reality is critical to them being empowered to be creative... and for their contributions to be valued. I write about this kinda stuff all the time - hopefully in a predominantly practical way - on my blog: Agile Advice.
Helping with organizational effectiveness is our job.
Here's another tip: Stop trying to own your creative people. The most creative people are the ones who will be working for themselves in five years, and thus aren't willing to sign non-compete agreements, overly-broad NDAs, and contracts that say "we own everything you create whether you're being paid for it or not".
Your post rings hugely true. 9am-noon is "dead time". Been at a company for 1.5 yrs now. Despite a stack of great feedback from clients for the work I've done, I am currently dealing with a less-than-stellar feedback rating because my boss is hell-bent (at this point) at getting me in as much before 9am as possible. Man, I was swing-shift in the USAF, I was a night owl in college, and now Corporate America with all its kissass head-down follow-the-leaders is on my ass. I got dinged big-time for the 9:30 arrivals I was starting to get into- even though I REGULARLY work till 7/8- ESPECIALLY if I'm working on something interesting or am on a roll/"in flow". They just didn't have me working on anything, well, interesting, for a couple of months, and eventually it showed. And I get blamed for this shit. Hell, even my initials are P.M.!
;)
I'm a builder. I was always pegged as a creative/technical guy, I love to build, and in the line of work I feel I have taken up, that means coding and designing db-driven websites and mastering all related technologies. But they spec it all out for me until there is no "fun interesting part" left. My neat ideas get vetoed for "probably taking too much time to implement." That's right, I work in a Big 4 consulting firm, where every hour not billed directly to a client is a potential waste that shows up in your "utilization". Where you can't even start building a feature until you get at least one client lined up ready to share the cost of developing it. Heck, I guess it reeks of capitalist efficiency, but what a frickin creative buzzkill... This literally cuts out everything that, well, that the client doesn't know they want!
It's Wednesday, it's gorgeous out, and it's supposed to rain this weekend. Why can't I ditch the cube and go sailing today, and catch up on some of the work on the rainy weekend, maximizing the time available?? Is the idea here that a person doesn't have enough discipline to do shit unless there is a boss breathing down his/her neck every so often??
I may quit soon and start an LLC due to the lack of flexibility/creativity and the negative tensions that are erupting on both sides due to this. I'm tired of starting at the bottom of the totem pole and being held back all over again. The shit that the managers and senior managers get to do is not rocket science. (This is my second job but first consulting job, so I started at the bottom.)
Not to mention, I hate working on all-Microsoft technologies.
I have some great ideas for work, one possibly very profitable. I don't even care if my pay drops (hey, that rings true with this article, too!) as long as I'm reasonably comfortable. Anyone want to join my flex-time LLC if I start one up? Here's the idea:
1) Monday morning, we try to determine the tasks we're going to try to get done that week, and divide them up into days.
2) When you are done with your tasks for the day, you can go home.
3) When you are done with your tasks for the week, you can take the rest of the week off. Or work on your own stuff.
4) Some XP methodologies used.
The way I'd see this working is a combination of Microsoft-esque flextime and Google-esque work-on-pet-project time.
Thoughts?
If you are developing software in any capacity, personally I think nothing helps creativity more than a clean code base. When the biggest thing you associate with implementing a new interesting feature is the crap you have to go through to get it interacting with everything else, you aren't very likely to come up with good ideas and act on them often.
Most of the time it feels like HBS is in a different universe from the way things are done in u.s.. Theoretically they teach these principles to managers who then manage us they way they're taught but it's never shown.
Maybe HBS graduates go into fields other than technology and those fields are run like HBS teaches. Maybe technology leaders only come from Stanford and they have an opposite philosophy.
Globally, Harvard seems more in line with the way things are done in India.
The day the big faceless outsourcing companies in India figure out how to nurture employees for creativity, that's the day we have to fear.
As of now, they seem to be blissfully unaware, and so we can compete easily on creativity. They produce crap in large numbers, and for whom it's ok, it's OK. We make the interesting and innovative things.
And before you start flaming about how good the outsourced software really is, please give an example, and explain why it's good. All I have seen was useless crap, just like the stuff produced by big faceless corporations over here - unsurprisingly.
Don't waste time looking for creativity at work. If you have it great, but expecting it and being frustrated because it's not there is just a waste of time and energy. Companies don't care about your creative needs. They barely care about your work environment needs.
After about 20 years in this business, I finally got a hobby. One that fulfils my creative needs. Now I control it on my own terms, one hundred percent.
That sounds a lot like what Paul Graham says in his "Great Hackers" essay. Although I think you could also sub other words for Hacker. (Programmer, Artist, etc)
m l
Essay
http://www.paulgraham.com/gh.html
Audio version read by the author:
http://www.itconversations.com/shows/detail188.ht
Coder's Stone: The programming language quick ref for iPad