Do leaders believe that the incentives they use will actually work? Maybe not, or not in the way we would expect - to improve performance. Check out this study from Harvard's (Emeritus) Michael Beer and Nancy Katz published in Human Resource Planning called Do Incentives Work? The Perceptions of a Worldwide Sample of Senior Executives. This is not a new study (from 2003), but still interesting and relevant. Here is a quote from the abstract:

"Our survey of 205 executives from many countries investigates their perceptions of the causes and consequences of using executive incentives. The most important reason cited for instituting bonuses is that bonuses motivate. At the same time, executives believe incentives only improve performance slightly, if at all. A more likely explanation for the use of bonuses may be to attract and keep executives; executives use theories about motivation as rhetoric to justify their actions. We also find evidence that the belief in executive incentives is a social construction, more prevalent among U.S. managers than among managers from Europe and Asia."

The bolded sentence is my emphasis. Like the power of placebos, conversations can create a powerful reality. We talk ourselves into actions, beliefs, and approaches. Sometimes coversations serve our goals, sometimes they don't. But what are the ramifications of widespread socially constructed realities that are not valid or helpful or accurate? Where might this be showing up where you work?

Need more examples?

  • How about the value of performance appraisals? Lots of social construction here!
  • Using SMART goals? Millions of managers mantra this approach.
  • Some of you might think your organiation's evaluation of how well leaders model the values and mission are "truths" born from misguided social construction.

Remember the Emperor's New Clothes?