The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance [Updated & Rev

This book gets to the underlying problem (and the solution) in our world today. We have to put service before self, and others first. When we sincerly care about others, loving each other as commanded, anything is possible.

More than 10 years ago, an organization that I headed, Leading Division Presidents 100, looked at the question of how to improve employee motivation and effectiveness. From that research, it was clear that improving employee recognition could be an important element among many. Since that time, I've looked in vain for a book that described how to implement such a recognition program. I'm pleased to say that The Carrot Principle fills that void. Congratulations to the authors. The authors begin by making the case for why recognition works in making organizations more successful: 1. Where employees feel more recognized, return on equity is higher (2.4 percent in the lowest quartile compared to 8.7 percent in the highest quartile. (This finding did raise a question in my mind -- why are the companies in this research study all so unprofitable in ROE?) 2. Where employees rate managers highly for recognizing employee contributions, customer satisfaction, employee satisfaction, and retention are usually higher. 3. People with high work motivation almost all (94.4 percent) say that their managers are effective at recognition. 4. 79 percent of those who quit jobs cite lack of appreciation as one reason for leaving. How much are companies spending that provide good employee recognition? Basically, it's about $1,000 a year per employee. Many of the employers cited in the book report feeling that they enjoy economic payoffs that are more than 20 times that cost. The authors offer a Recognition Effectiveness Model on page 178 that captures the essence of how they see the cause and effect working: 1. Where employee recognition is higher, goal setting, communications, trust, and accountability are higher. 2. These benefits are accelerated by recognizing what matters most which helps with alignment, reinforcing the desired culture, company values, and business objectives. 3. These benefits can be further accelerated by doing recognition in the right way, increasing impact by being inclusive, meaningful, and performance-based. 4. Business results improve because the program is relevant to manager tasks and improvements in employee engagement that lead to better employee retention, productivity, customer satisfaction, and profitability. The methodology for putting this model in place begins with measuring, then assessing, designing, training, executing, and then reiterating those steps. The statistical findings are described in detail in appendices B, C, and D which I recommend you read. But a lot of people have reported that recognition is important. You probably already believe that or you wouldn't be considering this book. I found the most beneficial parts of the book concentrated in how to create a carrot culture (of recognition) and details of how to manage by carrots (recognition). Before leaving that subject, let me say that I found the carrot metaphor troubling. Recognizing people isn't the same as dangling a carrot

This book should be required reading for all managers. The recommendations are based on solid data. The text is well written and easily understood, with a lot a good examples. You think most of this would be common sense, but in practice there are too few managers who actually practice, let along know, these principles. These principles can also be applied to life in general, especially if you have kids. I highly recommend this book along with "The Marine Corp's Way" management book.

The best of the carrot series. Great case studies and wonderful new data showing the power of employee recognition done well - highly recommended!

Anyone who manages others; be it a parent, business owner or athletic coach, needs to read this book. You'll be able to get the most out of those around you.