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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."

15 of 130 comments (clear)

  1. Dream on, sucker! by Seumas · · Score: 5, Insightful

    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...

    1. Re:Dream on, sucker! by Seumas · · Score: 3, Insightful

      Yeah, but employees know that options are worthless until they are fully vested. And if your dipshit of a CEO fuckwaggled the stock price down 95% sot hat what was a good million in options when you were hired was now worth less than the one-ply you wipe your ass on in the company bathroom, why would you even care about options?

      Plus, while options from WalMart might not be so bad, you'd be insane to take options as any manner of compensation in the tech industry these days.

  2. Article not really about stock options by robla · · Score: 4, Informative

    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

    1. Re:Article not really about stock options by Seumas · · Score: 4, Insightful

      I'm constantly amazed at the crappy "perks" corporations pay for that their employees couldn't care less about. For isntance, my company offers a concierge service. This service arranges for other companies and businesses to come in and try to sell the employees shit that they don't want. And they arrange for employees to have free access to very important online resources, like an article about writing a proper "thank you" note.

      I have a better idea. Have someone who gets my lunch so I don't have to leave the office for an hour and can have less stress dealing with traffic and lines and waiters. How often do I need to get my car fucking detailed for christ's sake? Instead, how about having someone who can help me find a quality babysitter or refer me to a great place to take the girl out for a romantic dinner and maybe throw in a corporate discount to boot. How about handling my personal mail and courier packages for me so I can just drop them off at a kiosk on my way into the office? How about offering career guidance or more education options instead of just paying lipservice to how important those things are and then putting a freeze on them to save money?

      I have never used any of the corporate services (mental health experts? medical phone number? car detailing? dry cleaning? thank-you-letter tutorial? discount on granola bars from a local vending machine supplier at a special sell-shit-to-our-capitive-employees-day?) and I don't know anyone who has. How about stop stuffing your offering full of shit just to say you offer a lot and start ovffering fewer, MORE VALUABLE services that actually make a difference.

      And you know, sometimes it's the small things. It's amazing what your workforce can do when they feel important and feel like they matter rather than constantly under the thumb of layoffs. Morale is important. Something as cheap as giving your employees free bagels and cream cheese once a week or donuts once or twice a week will make them feel like someone gives a fuck and like their contributions are valued. Otherwise they're likely to feel like they're just an unwanted burden and as soon as they can arrange to have you replaced by a cheaper drone, you're gone. Even if that's true, get the proper work you can out of the employee by installing loyalty... by treating them with little perks that make their work life enjoyable. After all, they probably will be spending at least 35% of their entire lifetime in your office...

    2. Re:Article not really about stock options by techmuse · · Score: 3, Insightful

      The reason that stock options don't work is that if you underpay someone, they will be unhappy. But if you pay someone enough, then increasing their pay has diminishing returns. Example. I pay a CEO $400,000 per year. They can afford just about anything they want. Now I pay them $5 million per year. Do they work harder or more intelligently? Nope. Same thing applies to other workers.

      On the other hand, if you make your workers *happy*, they will work for *less* money. See university profs for an example. So many people want to be a prof that universities can afford to pay less - but only because lots of people WANT those jobs.

      Happiness motivates. Too much money doesn't do much. Too little money demotivates.

  3. Most important part of the article by John+Seminal · · Score: 4, Interesting
    Creativity can't be shoehorned between the hours of nine and five. The Muses don't always show up on time for appointments.

    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."

  4. Creativity needs no management by Andrew+Tanenbaum · · Score: 3, Insightful

    Management sucks the creativity right out of you

  5. A better read: Hare brained, tortoise minded by EmbeddedJanitor · · Score: 3, Interesting
    Creativity does come from within, but most corporations build an environment that is not condusive to creativity/innovation.

    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.
  6. A place for managers to start... by OSXCPA · · Score: 5, Insightful

    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!

  7. A little bit more about creativity by roffe · · Score: 4, Insightful

    Robert Epstein (last to receive a Ph.D. from B.F. Skinner) lists four strategies for generating creative output. These are

    • Capturing: The main thing that distinguishes "creative" people from the rest of us is that the creative ones have learned ways to pay attention to and then to preserve some of the new ideas that occur to them. They have capturing skills. In other words, get a PDA and learn how to use it.
    • Challenging One way to accelerate the flow of new ideas is by challenging yourself--that is, by putting yourself in difficult situations in which you're likely to fail to some extent. A challenging situation is like an "extinction" procedure in the behavioral laboratory. We extinguish behavior when we withdraw the reinforcers that usually maintain that behavior. In challenging situations, a great deal of behavior goes unreinforced; it just doesn't work.
    • BroadeningIf you want to enhance your own creativity, take courses in subjects you know nothing about. Once a year, at least, take a course at a local college in the last thing you'd ever want to know about. Land's own breakthrough invention came about because of training he had in crystallography, chemistry, and other fields. The invention of Velcro, the modern theory of electron spin, and countless other advances were made possible because their creators had training in diverse fields. Steve Jobs recently made a point of how his training in caligraphy contributed to the intitial success of the Macintosh.
    • Surrounding Finally, you can enhance your creativity by surrounding yourself with diverse stimuli--and, even more important, by changing those stimuli regularly. Diverse and changing stimuli promote creativity because, like resurgence, they get multiple behaviors competing with each other. If you put a Mickey Mouse hat and pliers on your desk in the morning, your thinking will move in odd directions during the day. Call these items distractions, if you like; they are great reservoirs of creativity

    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
    1. Re:A little bit more about creativity by OSXCPA · · Score: 4, Insightful

      A possible answer - if you are a singularly creative, producing person, hire a 'do-er' or team thereof who can take what you set up and explain and grind it out. Assuming you have the means to do that... Otherwise, try setting self-imposed limits, e.g., "I am not allowed to do (X very nice, imaginitive thing) until I implement (Y grindingly dull job done).

      Works for me, but YMMV.

      BTW - you may repeat great ides of the past, but hey - your timing might be better than the earlier implementation was. Think about all the stories of Steve Jobs seeing GUI, email and OO programming at Xerox PARC - he has even said, he didn't originate them, he implemented them and got them out for use when the time was right. (OK, many of the concepts were implemented by others along the way, but you get the point)

      Cheers!

  8. Re:Creativity may come from within by FlameboyC11 · · Score: 3, Insightful

    Programming isn't creative? Writing code is all about thinking outside the box, how can you solve x problem?

  9. Flexitime rules by Anonymous+Brave+Guy · · Score: 4, Interesting
    When I came back to my current job, I accepted the position on the condition that I could shift my schedule several hours forward from the usual "9-5". This not only makes me more productive when I am in the office, but let's me shave a couple of hours off my commute because I avoid rush hour. Win-Win for everybody.

    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.
  10. Off topic... by xENoLocO · · Score: 4, Funny

    ... 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."
  11. A Clean Code base! by moultano · · Score: 5, Insightful

    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.