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The Carrot Principle

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The Carrot Principle

  1. 1. The Carrot PrincipleHow the Best Managers use Recognition to EngageTheir People, Retain Talent, and AcceleratePerformance. Principle Sylvia Huang 2011/08/16
  2. 2. Author Introduction Adrian Gostick Author Chester Elton Coauthor
  3. 3. ContentsPart I The AcceleratorPart II Carrot CulturePart III Managing By CarrotsAppendix
  4. 4. Part I The Accelerator CARROT
  5. 5. Part I The Accelerator Seed Plant Nurture Weed Goal Setting Communication Trust Accountability Recognition (the accelerator) The Carrot Principle
  6. 6. Part II Carrot Culture Altruists and Expectors Engaged and Satisfied?!
  7. 7. Part II Carrot Culture DHL Recognition Program•Objective: leadership team of DHL’s Arizona-based IT group•Reason: increase employee retention and engagement•Specialty: DHL’s leadership not only provided training for theirIT managers on recognition concepts, but also trained everyemployee. Every person was given a copy of a Carrotrecognition book and trained on recognition basics, thentasked with acknowledging great behavior related to their goals
  8. 8. Part II Carrot Culture KPMG Encore Award • The companys Encore program is a mechanism for managers and partners to provide "on-the-spot" recognition for KPMG employees. The awards range from simple notes of thanks and desk trophies to gift cards and prizes in $500, $250 and $100 increments. The program initially started on a local level, but eventually was rolled out nationally. • During the firms fiscal year 2005, KPMG employees received about 35,000 Encore Awards, with around $8.5 million distributed to employees -- more than double the numbers of the previous fiscal year.
  9. 9. Part II Carrot Culture The Building Blocks of a Carrot Culture I C I C situation Frequent Action Specific Impact Link Timely
  10. 10. Part II Carrot Culture
  11. 11. Part II Carrot Culture
  12. 12. Part II Carrot Culture Carrot Go Global! Engagement top 3 key predictors Summary by Country 全部 澳 巴 中 德 印 日 墨 俄 新 土 阿 英 美 洲 西 國 國 度 本 西 國 加 耳 聯 國 國 哥 坡 其Opportunity andWell-Being 1 1 1 1 1 1 1 1 1 1 1 1 1 1Trust 2 2 2 2 2 3 3 3 3OrganizationSymbol 3 3 3 3 3 2 3 3 2 2 2 2
  13. 13. Part II Carrot Culture Carrot Go Global! Recognition top 3 key predictors Summary by Country 全部 澳 巴 中 德 印 日 墨 俄 新 土 阿 英 美 洲 西 國 國 度 本 西 國 加 耳 聯 國 國 哥 坡 其Alignment 1 1 1 1 1 1 1 1 1 1 1 1 1 1PerformanceBased 2 2 2 3 2 2 2 2 2 2 2Meaningful 3 3 3 2 3 3 3 2
  14. 14. Part III Managing By Carrots The Carrot Calculator Day –to Day (Thank you Level) • $0;$100 to $200Above- and Beyond Awards(Bronze, Silver, and Gold Levels) • $250 to $500 annually Event Recognition • $100 annually Service Awards (Celebration events) • $200 annually
  15. 15. Why Don’t we Recognize?I ‘m afraid of jealousy if Don’t stop praising andI recognize. rewarding, or they will stop doing what it is you value..If I recognize too much,it will lose meaning. Public recognition only raises the bar for everyone.Employee already getstoo much recognition. Recognize never loses meaning, and it’s best when it’s fresh.I don‘t know howmuch of my budget to In most of the company, 2%allocate to recognize. of payroll, or about $1000 per employee per year.
  16. 16. Part III Managing By Carrots Recognition Ideas! Surprise your people by taking them to a blockbuster film matinee on the opening day. Choose a flick that won’t offend anyone, and ,if possible, double the impact by choosing a movie that shows a team working together to achieve a difficult goal. The next time you are talking one of your people, ask” If you had a day off to spend as you wanted, what would you do?”Seeing an employee as a person outside the office is the first step toward choosing an appropriate form of recognition. When ever you praise an employee, put your notes in the employee’s file to review again during the next performance appraisal.
  17. 17. Recognition Effectiveness Model Basic Four Recognition Accelerator Business Results “Recognizing What matters Most” Manager Goal Setting Alignment- does it reinforce Relevance •Desired Culture Employee Communication •Company Values Engagement •Business Objectives Trust “Recognizing People the Right Way” Business Results Impact- is it •Retention Accountability •Inclusive •Productivity •Meaningful •Customer •Performance-Based Satisfaction •Profitability Measure Assess Design Train Execute
  18. 18. Recognition Training Program  Get Aligned  Set the Rules  Determine the Budget  Find the Awards  Create the Moment  Administration Plan  Communication Plan  Program Evaluation
  19. 19. Feedback
  20. 20. Back up
  21. 21. DHLVision“Customers trust DHL as the preferred global express and logistics partner, leadingthe industry in terms of quality, profitability and market share.”MissionDHL enhances the business of our customers by offering highest quality expressand logistics solutions based on strong local expertise combined with the mostextensive global network presence.• DHL attracts, develops and retains exceptional people by creating a truly globalworking environment and placing value on our multi-cultural heritage.• DHL delivers above-average returns by providing superior quality and solutions atall levels of the business processes.• DHL is a responsible corporate citizen in all countries in which we operate, takinginto account the social and environmental needs of our employees, localcommunities and the public.
  22. 22. DHLValueTo deliver excellent qualityTo make our customers successfulTo foster opennessTo act according to clear prioritiesTo act in an entrepreneurial wayTo act with integrity internally and externallyTo accept social responsibilities
  23. 23. KPMGValueWe lead by exampleWe work togetherWe respect the individualWe seek the facts and provide insightWe are open and honest in our communicationWe are committed to our communitiesAbove all, we act with integrity
  24. 24. Thanks For yourattention!