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Synopsis

How can you succeed in the contemporary economy where creativity and conceptual work are increasingly valued? How do you motivate your employees to contribute their best to the company's goals?

The answer to both questions is to recognize that traditional notions of management—using carrots and sticks to motivate workers—are outdated. People do their best creative work when their intrinsic motivation is awakened.

Drive explains the new insights into human motivation uncovered by behavioral scientists and shows how you can tap into the human desire for autonomy and purpose to transform how you live and work.

Top 20 insights

  1. Over the past few decades behavioral scientists have uncovered new insights into human motivation—insights that the business world has yet to discover.
  2. Motivation 1.0 was the drive to survive; Motivation 2.0 was based on external rewards and punishments for work done. It was an operating system that saw workers as parts in a complicated machine, needing rewards and punishments to perform routine, algorithmic tasks.
  3. Today's economies depend more and more on creative, heuristic work. Neither Motivation 1.0 nor Motivation 2.0 can explain the success of Wikipedia; nor are they effective for the kinds of work called for in the twenty-first century economy.
  4. The enthusiasm and creativity that are increasingly needed in the modern workplace are actually dampened by the external rewards-and-punishments approach of traditional business.
  5. For artists, scientists, students, in fact everyone, intrinsic motivation—the drive to do something because it is interesting and absorbing—is essential for creativity. External rewards crush this intrinsic motivation.
  6. Motivation 3.0 calls for a new type of behavior: Type I, or intrinsic motivation. This is based on the innate inner drive of all humans to be autonomous, self-determined, and connected to one another.
  7. Outdated notions of management encourage Type X behavior that cares more about the external rewards that a task can bring and less about the inherent satisfaction of a task.
  8. Type X behavior is learned, whereas Type I is inherent to being human; traditional management approaches change our human default setting from Type I into Type X.
  9. With a focus on personal fulfillment, Type I almost always outperforms Type X in the long run; encouraging Type I behavior is better for people's physical and mental well-being.
  10. Humans are designed to be active and engaged. We are at our best when we are doing something that involves autonomy, mastery, and purpose.
  11. Autonomy is not the same as independence; it means acting with choice. Autonomous motivation brings greater conceptual understanding, higher productivity, and less burn-out.
  12. People need autonomy over what they do (task); when they do it (time); who they do it with (team); and how they do it (technique). Best Buy has boosted productivity by embracing these concepts of autonomy.
  13. Motivation 3.0 assumes that people want to be accountable, and that giving them autonomy will encourage this.
  14. Mastery, the urge to make progress and get better at what we do, is essential to making one's way in today's economy. The modern workplace tends to disregard mastery and engagement, and instead emphasizes compliance.
  15. The only way to attain mastery is through engagement, prizing learning goals over performance goals and recognizing the intrinsic value of effort as a way to improve at something that matters.
  16. There are three rules of mastery: it is a mindset; it is a pain; and it is an asymptote (something that can be approached but is never attained).
  17. Traditional businesses see purpose as ornamental and something that should not get in the way of more important pursuits. Motivation 3.0 realizes that purpose is an essential part of the human condition.
  18. Forward-thinking organizations and corporations such as TOMS Shoes recognize purpose maximization alongside profit maximization as an aspiration and guiding principle. They embrace the "purpose motive"—using profit to reach a purpose.
  19. You can awaken your Motivation 3.0 by looking for patterns in your daily tasks and asking yourself what are the tasks that produce feelings of flow, that moment of optimal experience when the challenge you face is perfectly matched with your abilities. Make a "to don't" list of the tasks and behaviors you want to avoid.
  20. To unleash Motivation 3.0 in your company or group, carve out time for non-commissioned work. As a boss, encourage Type I behavior by relinquishing control.

Summary

Most businesses have yet to catch up on the insights into human motivation that have been uncovered by behavioral scientists in recent years. The traditional business view focuses on Type X behavior, using external rewards and punishments to motivate workers. But today's economy increasingly calls for creative and heuristic forms of work that require Type I behavior that is focused on active and engaged employees with autonomy and a sense of purpose. This is Motivation 3.0, appealing to our intrinsic self-motivation. The most forward-thinking companies recognize the need to embrace this human drive and pursue profit as a catalyst toward a higher purpose.

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Small businesses can apply the principles of Motivation 3.0 by fostering an environment that promotes autonomy, mastery, and purpose. Autonomy allows employees to have control over their work, which can lead to increased creativity and productivity. Mastery encourages employees to become experts in their field, which can lead to high-quality output. Purpose gives employees a sense of meaning in their work, which can lead to increased job satisfaction and loyalty. Additionally, businesses can align their goals with a higher purpose, which can attract customers who share the same values.

Motivation 3.0 challenges traditional business paradigms by shifting the focus from external rewards and punishments to intrinsic motivation. Traditional business models, often referred to as Type X behavior, rely heavily on external motivators such as bonuses or penalties. However, Motivation 3.0, or Type I behavior, emphasizes the importance of autonomy, purpose, and engagement in work. This approach recognizes that today's economy increasingly requires creative and heuristic forms of work, which are better suited to intrinsic motivation. Forward-thinking companies are beginning to embrace this concept, using profit as a catalyst towards a higher purpose rather than the sole objective.

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Motivation 3.0

Thousands of years ago, the human drive was focused on survival. We can call this drive, or operating system, Motivation 1.0. As society became more complex, so did our operating system. We came to realize that humans are more than just the sum of our biological urges; we developed a second operating system, Motivation 2.0, which was focused on external rewards and punishments. Harnessing this drive became essential to economic progress, especially during the last two centuries, as business saw workers as parts in a complicated machine. The bedrock assumption of Motivation 2.0, which is now deeply ingrained in our organizations and daily lives, is that the way to improve performance, increase productivity, and encourage excellence is to reward the good and punish the bad.

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The concept of Motivation 2.0, as presented in 'Drive', has significantly influenced corporate strategies and business models. It has led to the adoption of reward and punishment systems in organizations to improve performance and productivity. Companies have structured their incentive programs, performance appraisals, and promotion systems around this concept. It has also influenced the design of job roles and responsibilities, with tasks being structured to provide clear rewards for achievement and penalties for failure. However, it's important to note that while Motivation 2.0 has been influential, it's increasingly being challenged by newer concepts of motivation that focus on intrinsic factors like autonomy, mastery, and purpose.

Startups can harness the principles of Motivation 2.0 by creating a work environment that focuses on external rewards and punishments. This can be achieved by setting clear goals, providing regular feedback, and implementing a reward system that recognizes and rewards good performance. Additionally, startups can foster growth and excellence by encouraging autonomy and purpose among their employees. This can be done by giving employees the freedom to make decisions and by aligning their work with the company's mission and values.

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This operating system worked for routine tasks, but it's incompatible with how we work in the twenty-first century.

Consider: the largest and most popular encyclopedia in the world was created by tens of thousands of people who write and edit the articles for fun. They have no special qualifications and they are not paid a dime for their work. The conventional view of human motivation has a very hard time explaining Wikipedia.

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In 'Drive', Daniel Pink presents several innovative ideas about human motivation. One of the most surprising is the concept of intrinsic motivation, which is the idea that people are driven by internal rewards, such as personal satisfaction or the joy of doing something they love, rather than external rewards like money or recognition. This is exemplified by the creation of Wikipedia, which was built by volunteers driven by their passion and interest, not by monetary compensation. Another innovative idea is the importance of autonomy and purpose in driving motivation. Pink argues that when people have control over their work and feel that it is meaningful, they are more motivated and productive.

The insights from 'Drive' can be applied to motivate employees in today's creative and conceptual work environment by fostering autonomy and purpose. Autonomy allows employees to have control over their work, which can lead to increased job satisfaction and productivity. Purpose, on the other hand, gives employees a sense of meaning and direction in their work. This can be achieved by aligning the company's mission and values with the personal goals and values of the employees. Furthermore, intrinsic motivation, which is the drive to do something because it is interesting, challenging, and absorbing is key in creative and conceptual work environments.

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Intrinsic motivation

Behavioral scientists divide what we do on the job into algorithmic tasks—those with set instructions and processes that can be outsourced or automated—and heuristic tasks—those that require you to experiment and create. In the twentieth century, most work was algorithmic; today more and more work is heuristic. And while extrinsic or external rewards and punishments can motivate someone doing routine work, they actually dampen the enthusiasm and creativity of someone doing the kind of creative, heuristic work on which modern economies depend.

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Small businesses can apply the key topics or framework covered in 'Drive' to enhance creativity and productivity among their employees by fostering an environment that encourages autonomy and purpose. This can be achieved by shifting from a focus on algorithmic tasks, which are routine and can be automated, to heuristic tasks, which require creativity and experimentation. By doing so, businesses can tap into the intrinsic motivation of their employees, which is more effective for heuristic work. Additionally, businesses should avoid relying solely on external rewards and punishments as they can dampen enthusiasm and creativity.

In 'Drive', Daniel Pink presents several innovative ideas about motivating employees in modern economies. One of the key ideas is the shift from algorithmic tasks to heuristic tasks in the workplace. Algorithmic tasks are routine tasks with set instructions and processes, while heuristic tasks require creativity and experimentation. Pink suggests that while external rewards and punishments can motivate someone doing routine work, they can actually dampen the enthusiasm and creativity of someone doing heuristic work. Therefore, modern economies that depend on creative, heuristic work need to tap into the human desire for autonomy and purpose to motivate employees.

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Motivation 3.0 is the upgrade necessary for the smooth functioning of twenty-first century business.

No more carrots and sticks

The traditional reward-and-punishment system works fine in some settings but it's a deeply unreliable predictor of human behavior. We need a new way to think about motivation.

If you want to motivate a child to learn math, you might think it a good idea to encourage her with a payment for every workbook page she completes—but social science research has shown that while this may encourage her in the short-term, it will actually turn the task of doing math into a chore, and she'll lose interest in the long-term. Tangible "if-then" rewards can wipe out intrinsic motivation, diminish performance, crush creativity, and crowd out good behavior.

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'If-then' rewards are a type of extrinsic motivation where a reward is given if a certain condition is met. For example, if a child completes a math workbook page, then they receive a payment. While this can encourage short-term motivation, it can have negative long-term effects. It can turn tasks into chores, diminishing intrinsic motivation, which is the internal desire to do something. This can lead to decreased performance, reduced creativity, and the crowding out of good behavior. Essentially, 'if-then' rewards can undermine the natural human desire for autonomy and purpose, which are key drivers of intrinsic motivation.

Yes, there are several companies that have successfully used the principles of 'Drive' to enhance creativity and performance. For instance, Google allows its employees to spend 20% of their time on personal projects, which has led to the creation of some of its most innovative products like Gmail and Google News. Another example is Atlassian, an Australian software company, which implements 'FedEx Days' where employees are given 24 hours to work on any problem they want, as long as it's not part of their regular job. This has resulted in numerous process improvements and new product ideas.

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For artists, scientists, inventors, students, in fact everyone, intrinsic motivation—the drive to do something because it is interesting and absorbing—is essential for creativity. The economy is moving towards creative and conceptual forms of work, yet business is still clinging to the old "if-then" reward structures of extrinsic motivation. These external carrots not only crush creativity and encourage short-term thinking, they can become addictive: pay your son to take out the trash one day, and he'll never want to do it again without getting paid.

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The 'if-then' reward structures can have several negative consequences in today's economy. Firstly, they can stifle creativity. Intrinsic motivation, which is the drive to do something because it is interesting and absorbing, is essential for creativity. However, 'if-then' rewards are a form of extrinsic motivation that can suppress this intrinsic drive. Secondly, these reward structures encourage short-term thinking, as individuals focus on achieving the immediate reward rather than considering long-term implications or innovative solutions. Lastly, 'if-then' rewards can become addictive, leading to a situation where tasks are not performed without the promise of a reward.

The principles of intrinsic motivation can be applied to modern business practices by creating an environment that fosters autonomy and purpose. This can be achieved by giving employees the freedom to explore their interests and passions, and aligning their tasks with their personal goals and values. This approach can stimulate creativity and innovation, and lead to higher job satisfaction and productivity. It's also important to move away from traditional 'if-then' reward structures, as they can stifle creativity and promote short-term thinking.

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Sometimes carrots and sticks work just fine: they are great for rules-based routine tasks with little intrinsic motivation or creativity but beware using rewards of any kind for non-routine conceptual tasks. In such cases, use rewards in a way that gives useful information about performance.

Type I

There is a body of work in the social sciences based around the concept of self-determination theory, the idea that humans have an innate inner drive to be autonomous, self-determined, and connected to one another. This approach lays the foundation for a new human operating system, Motivation 3.0, based on a new type of behavior: Type I.

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Self-determination theory plays a crucial role in motivating employees as it taps into the innate human desire for autonomy, self-determination, and connection. This theory suggests that when employees feel autonomous and connected, they are more likely to be motivated and contribute their best to the company's goals. It forms the basis for a new human operating system, Motivation 3.0, which is based on a new type of behavior: Type I. This behavior is characterized by a drive to learn and create new things, which can significantly enhance an employee's contribution to a company's goals.

The innate human drive for autonomy and connection can be utilized in the contemporary economy by fostering an environment that encourages self-determination and interpersonal relationships. This can be achieved by implementing a new human operating system, Motivation 3.0, which is based on a new type of behavior: Type I. This behavior type promotes autonomy, mastery, and purpose, which can lead to increased productivity and satisfaction in the workplace. By tapping into these innate human desires, businesses can create a more engaged and motivated workforce, leading to improved performance and success in the contemporary economy.

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Motivation 2.0 used and encouraged Type X behavior that was fueled by extrinsic desires, not intrinsic ones. Type X behavior cared less about the inherent satisfaction of a task and more about the external rewards that the task can bring.

Motivation 3.0 depends on and fosters Type I behavior, that is less concerned with external rewards and more with the inherent satisfaction of the activity itself. Type I behavior doesn't disdain money or recognition, they are just not the most important considerations. Type I almost always outperforms Type X in the long run; and encouraging this behavior is better for people's physical and mental well-being.

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Encouraging Type I behavior over Type X has several long-term benefits. Firstly, it fosters intrinsic motivation, where employees are driven by the inherent satisfaction of the activity itself rather than external rewards. This can lead to improved performance as employees are more engaged and invested in their work. Secondly, it promotes better physical and mental well-being. When employees are motivated by their own interests and passions, they are likely to experience less stress and burnout. Lastly, Type I behavior is more sustainable in the long run as it is not dependent on external rewards, which may not always be available or sufficient.

The principles of Motivation 3.0 can be applied to foster Type I behavior in a work environment by creating an environment that values autonomy, mastery, and purpose. Autonomy allows employees to have control over their work and how they achieve their goals. Mastery encourages employees to continually improve their skills and knowledge. Purpose gives employees a sense of meaning and direction in their work. By fostering these three elements, a work environment can encourage Type I behavior, which is less concerned with external rewards and more with the inherent satisfaction of the activity itself.

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For professional success and personal fulfilment, we need to move ourselves and our colleagues from Type X to Type I.

Rediscover your default setting

Our default setting is to be autonomous and self-directed, but outdated notions of 'management' change that default setting and turn us from Type I into Type X. In other words, Type X behavior is learned, whereas Type I is inherent to being human.

Science shows that the secret to high performance isn't our biological drive or our reward-and-punishment drive, it's our desire to direct our own lives, to expand our abilities, and to make a contribution. Anyone who spends time around young children knows that humans are designed to be active and engaged. We are at our best when we are doing something that matters, doing it well, and doing it in the service of a cause larger than ourselves.

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The book "Drive" by Daniel Pink explains the shift in value towards creativity and conceptual work in the contemporary economy by highlighting the importance of intrinsic motivation. It suggests that the secret to high performance isn't our biological drive or our reward-and-punishment drive, but our desire to direct our own lives, expand our abilities, and make a contribution. This shift in value is driven by the human desire for autonomy and purpose, which can transform how we live and work. In the contemporary economy, creativity and conceptual work are highly valued as they allow individuals to be active, engaged, and contribute to a cause larger than themselves.

The book 'Drive' suggests several innovative ways to foster a sense of autonomy and purpose in employees. One way is to allow employees to have more control over their work, such as choosing their projects and setting their schedules. This can help them feel more invested in their work and more motivated to perform well. Another way is to provide opportunities for employees to develop their skills and abilities. This can give them a sense of growth and progress, which can be very motivating. Finally, the book suggests connecting employees' work to a larger purpose or cause. This can give them a sense of meaning and purpose, which can drive their motivation and performance.

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There are three elements needed to encourage Type I behavior: autonomy, mastery, and purpose.

Autonomy

The traditional idea of management is based on the assumption that people need to be pushed to take action or move forward, when in fact we are wired to be active and engaged. Autonomy—our desire to be self-directed—is a basic human need.

Autonomy is not the same as independence; it means acting with choice. Recent behavioral science research shows that autonomous motivation promotes greater conceptual understanding, higher productivity, more persistence at school and in sports, less burnout, and higher levels of psychological well-being.

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The concept of autonomous motivation can be implemented in real-world scenarios by providing individuals with a sense of choice and control over their tasks. This can be achieved by setting clear goals, providing feedback, and encouraging self-direction. In a work setting, this could mean allowing employees to have a say in their work processes, goals, and schedules. In an educational setting, it could mean allowing students to choose their own learning paths and methods. This autonomy fosters a sense of ownership and engagement, leading to greater conceptual understanding and higher productivity.

A startup can leverage the concept of autonomous motivation to promote higher productivity and less burnout among its employees by creating an environment that fosters autonomy. This means giving employees the freedom to make choices about their work, such as how they do it, when they do it, and who they do it with. This can be achieved through flexible work schedules, allowing remote work, and promoting a culture of trust and respect. Additionally, startups can encourage autonomous motivation by aligning tasks with employees' personal interests and values, and by providing opportunities for employees to develop and grow. This not only increases productivity but also reduces burnout as employees feel more engaged and satisfied with their work.

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People need autonomy over what they do (task); when they do it (time); who they do it with (team); and how they do it (technique). Far from discouraging accountability, Motivation 3.0 assumes that people want to be accountable, and that giving them autonomy will encourage this.

Organizations that have found inventive, even radical, ways to boost autonomy are outperforming their competitors. At Best Buy's corporate headquarters, most of the employees have abandoned a regular work schedule and instead operate in a ROWE—Results Oriented Work Environment. Salaried people put in as much time as it takes to do their work; hourly employees get to choose when they work. Productivity has increased by 35% and turnover is significantly lower. Similarly, the call-center employees at online shoe retailer Zappos don't follow scripts, and their calls are not monitored or timed. Their job is to serve the customer, whether it takes a minute or an hour. Unlike most call centers, which have high annual turnover rates, turnover at Zappos is minimal.

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The theme of autonomy in Daniel Pink's 'Drive' is highly relevant to contemporary issues in the workplace. Pink suggests that autonomy, or the ability for employees to have control over their work, can lead to increased productivity and lower turnover rates. This is exemplified in companies like Best Buy and Zappos, where employees are given the freedom to choose their work schedules or how they handle customer service calls. This approach has resulted in increased productivity and lower turnover rates, addressing common issues in the modern workplace.

Some organizations have boosted autonomy by implementing innovative work models. For instance, Best Buy's corporate headquarters operates in a Results Oriented Work Environment (ROWE), where employees work as much as it takes to complete their tasks. This has led to a 35% increase in productivity and significantly lower turnover. Similarly, Zappos' call-center employees are not bound by scripts or call timings, their primary job is to serve the customer, regardless of the time it takes. This has resulted in minimal turnover, unlike most call centers which have high annual turnover rates.

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Mastery

Mastery is our urge to make progress and get better at what we do; it is essential to making one's way in today's economy. The modern workplace, however, tends to disregard mastery. It emphasizes compliance—a Motivation 2.0 behavior that may be essential for physical survival but is a lousy way to attain personal fulfillment. Motivation 3.0 requires engagement, which is the only way to produce mastery.

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The concept of mastery challenges traditional practices in the modern workplace by shifting the focus from compliance to engagement. Traditional practices often emphasize compliance, which may be essential for physical survival but is not conducive to personal fulfillment. Mastery, on the other hand, is about making progress and improving in what we do. It requires engagement, which is the only way to produce mastery. This shift in focus can transform the workplace, making it more fulfilling and productive.

The concept of 'Mastery' as explained in 'Drive' contributes to personal fulfillment and progress in today's economy by emphasizing the importance of continuous learning and improvement. Mastery is our inherent desire to get better at what we do, which is crucial in the modern economy that values skills and expertise. It encourages individuals to engage deeply with their work, leading to higher productivity and satisfaction. However, the traditional workplace often overlooks this aspect, focusing more on compliance. To achieve personal fulfillment and progress, it's important to foster an environment that promotes Mastery, where individuals are motivated by their desire for autonomy and purpose.

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Mastery begins with "flow"—that moment of optimal experience when the challenge you face is perfectly matched with your abilities. Type I behavior prizes learning goals over performance goals and welcomes effort as a way to improve at something that matters.

There are three rules of mastery. First, recognize that mastery is a mindset that requires seeing your abilities as infinitely improvable. Second, realize that mastery is a pain; it demands effort, grit, and practice over a long period of time. Finally, acknowledge that mastery is an asymptote: this is a concept from algebra, meaning something that can be approached but never quite reached. Mastery is impossible to fully realize, making it both frustrating and alluring—the joy is in the pursuit.

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The concept of mastery as an asymptote implies that there is always room for improvement and growth. This can be a powerful motivator for employees as it encourages continuous learning and development. It can boost productivity as employees strive to get closer to mastery, knowing that it is an ongoing journey rather than a finite destination. This concept also fosters resilience, as employees understand that challenges and setbacks are part of the process of striving for mastery.

Small businesses can apply the three rules of mastery in the following ways:

1. Mastery as a mindset: Small businesses can foster a culture of continuous learning and improvement. This can be done by encouraging employees to develop their skills and by investing in training and development programs.

2. Mastery as a pain: Recognizing that growth and improvement require effort and persistence, small businesses should be prepared to face challenges and setbacks. They should also be patient and not expect immediate results.

3. Mastery as an asymptote: Small businesses should understand that there is always room for improvement. They should continually strive for better performance and growth, even if perfection is unattainable.

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Purpose

Humans seek purpose; it's part of our very nature. We yearn to contribute and be part of something bigger than ourselves. Motivation 2.0 doesn't recognize purpose as a motivator; traditional businesses see purpose as ornamental and something that should not get in the way of more important pursuits. Motivation 3.0 realizes that purpose is an essential part of the human condition.

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The book 'Drive' by Daniel Pink provides insights into the transformation of motivation in the contemporary economy by highlighting the shift from Motivation 2.0 to Motivation 3.0. Motivation 2.0, prevalent in traditional businesses, does not recognize purpose as a motivator and sees it as something that should not interfere with more important pursuits. On the other hand, Motivation 3.0, relevant in the contemporary economy, acknowledges that purpose is an essential part of the human condition. It taps into the human desire for autonomy and purpose, which are key to transforming how we live and work.

In 'Drive', Daniel Pink emphasizes the importance of purpose in human motivation. He argues that humans inherently seek purpose and desire to contribute to something larger than themselves. Traditional businesses, operating under what Pink calls 'Motivation 2.0', often overlook purpose as a motivator, viewing it as ornamental and not as important as other pursuits. However, Pink introduces 'Motivation 3.0', which recognizes purpose as an essential part of the human condition and a key driver of motivation.

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Attitudes toward the importance of purpose are changing, thanks in part to the tide of aging baby boomers—the largest demographic cohort in most western societies—who are becoming aware of their own mortality. As they reach the age of 60 and beyond, they are asking the big questions: What will I do in the last 25 years of my life? Am I going to do something that matters, that makes a difference in the world?

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The significance of purpose for aging baby boomers is profound. As they become aware of their own mortality, they start to question the meaning and purpose of their lives. This introspection often leads to a desire to make a difference in the world, to leave a legacy. This can impact their life decisions in various ways, such as choosing to volunteer, starting a new career, or focusing on personal growth and development. It's a shift from a focus on earning and accumulating to contributing and making a difference.

The concept of human desire for autonomy and purpose can be applied in a startup environment to foster growth by creating a culture that values these aspects. Autonomy can be fostered by giving employees the freedom to make decisions and take ownership of their work. This can lead to increased job satisfaction and productivity. Similarly, instilling a sense of purpose in employees can motivate them to work harder and be more committed to the company's goals. This can be achieved by clearly communicating the company's mission and how each employee's work contributes to it.

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Motivation 3.0 sees purpose maximization alongside profit maximization as an aspiration and guiding principle. Forward-thinking organizations and corporations recognize the importance of the "purpose motive," expressing it as goals that use profit to reach a purpose. For example, every time TOMS Shoes sells a pair of shoes to anyone, they give away a new pair of shoes to a child in a developing country. TOMS is both a charity that finances its operations with sales and a business that sacrifices its earnings to do good—and it's also neither of these things. It's a company with a new business model, one that "transforms our customers into benefactors." TOMS exemplifies the new breed of businessperson that seeks purpose with a fervor that traditional economic theory reserves for entrepreneurs seeking profit. They use profit as the catalyst, rather than the objective.

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The concept of 'purpose motive' challenges traditional economic theories and practices by shifting the focus from profit maximization to purpose maximization. Traditional economic theories often view profit as the primary objective of businesses. However, the 'purpose motive' suggests that businesses can also be driven by a desire to achieve a certain purpose, which can be anything from social good to environmental sustainability. This approach is exemplified by companies like TOMS Shoes, which uses its profits to provide shoes to children in developing countries. Such companies are not solely driven by profit, but use profit as a means to achieve their purpose. This challenges traditional economic models by introducing a new business model that values purpose alongside profit.

Yes, there are several companies that have used profit as a catalyst rather than the objective, similar to TOMS Shoes. One such example is Patagonia, an outdoor clothing company that donates 1% of its sales to the preservation and restoration of the natural environment. Another example is Warby Parker, an eyewear company that operates on a "buy one, give one" model, similar to TOMS, providing glasses to people in need for every pair sold. Lastly, The Body Shop, a cosmetics company, is known for its commitment to social and environmental causes, using its profits to drive these initiatives.

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The purpose-driven organization uses words that emphasize more than self-interest—words like greater good and sustainable—and they embrace policies that allow people to pursue purpose on their own terms.

In 2009 students in Harvard Business School's MBA program created the "MBA Oath," a code of conduct in which students pledge fealty to causes above and beyond the bottom line. Today, more than 300 educational institutions around the globe have embraced the MBA Oath. They recognize that purpose maximization has the potential to reinvigorate our businesses and remake our world.

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Purpose maximization can transform businesses by driving them to focus on more than just profit. It encourages businesses to consider their impact on society, the environment, and other global issues. This shift in focus can lead to innovative solutions that not only benefit the business but also contribute to global change. For example, a business with a purpose to reduce environmental impact might develop new, sustainable technologies. These technologies could then be adopted by other businesses, leading to widespread change.

The MBA Oath is significant in today's business environment as it represents a commitment by MBA students and graduates to uphold ethical standards in their professional conduct. It emphasizes the importance of considering not just the bottom line, but also the broader impact of business decisions on society and the environment. This shift towards purpose maximization is seen as a way to revitalize businesses and contribute positively to the world.

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Encouraging type I behavior

There are a number of ways to create the setting in which Type I behavior can flourish, both in yourself and in an organization.

Awaken your motivation

Start by giving yourself a "flow" test—at random times during the week take note of what you are doing, how you feel, and whether you are in the flow. Look for patterns and ask yourself, "What are the tasks that produce feelings of flow?" Can you restructure your day to increase these activities? What did this exercise tell you about your career and your true source of intrinsic motivation?

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The concept of 'flow' has significant implications for the contemporary economy, particularly in sectors where creativity and conceptual work are highly valued. Flow refers to a state of complete immersion in a task, where an individual is fully engaged and loses track of time. This state is often associated with heightened creativity and productivity, which are crucial in today's knowledge-based economy. By fostering environments that promote flow, businesses can enhance innovation, improve job satisfaction, and ultimately drive economic growth.

Daniel Pink's book 'Drive' suggests using the concept of 'flow' to enhance creativity and motivation at work by encouraging individuals to identify tasks that produce feelings of flow. These are tasks that fully engage an individual, creating a sense of focus and enjoyment. Once these tasks are identified, individuals can restructure their day to increase these activities, thereby enhancing their intrinsic motivation and creativity.

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To keep yourself motivated, at the end of every day ask yourself whether you were better today than yesterday. Did you do more of what motivates you?

Make a list of the tasks and behaviors you want to avoid—management guru Tom Peters calls this the "to don't" list, the unnecessary obligations and time-wasting distractions that stand in your way.

Improving your company, office, or group

Carve out time for non-commissioned work. Encourage employees to spend 20% of their hours working on any project they want. If these seem like too daunting of a cultural shift, start with 10% for a set period, say 3-6 months. See what people come up with when they are encouraged to spend one afternoon a week on non-commissioned work.

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Non-commissioned work challenges traditional business practices and paradigms by shifting the focus from a purely results-driven approach to one that values creativity and autonomy. Traditional business models often prioritize efficiency and productivity, measured by specific outputs or sales. Non-commissioned work, on the other hand, encourages employees to explore their own projects, fostering innovation and engagement. This can lead to unexpected breakthroughs and solutions, but it also requires a level of trust and flexibility that can be a significant shift from traditional hierarchical structures.

Implementing non-commissioned work can present several challenges for companies. Firstly, there might be resistance from employees who are used to structured tasks and clear directives. Secondly, there could be concerns about productivity, as non-commissioned work requires time that could be spent on regular tasks. Lastly, there might be difficulty in measuring the success of non-commissioned projects. To address these challenges, companies can start by implementing non-commissioned work gradually, allowing employees to adjust to the new system. They can also establish clear guidelines for non-commissioned work and develop metrics to measure its success. Regular feedback and open communication can also help address concerns and resistance.

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Make the next one-day offsite a day for non-commissioned work, where employees can work on anything they choose, however they want—just make sure they have the tools and resources they need. Impose one rule: people must deliver something the following day, a new idea, product prototype, or process.

Conduct do-it-yourself performance reviews, individually or with the aid of a small group of colleagues, where you self-evaluate every month based on a set of goals you set for yourself.

As a boss, encourage Type I behavior by relinquishing control. Involve people in goal-setting; use non-controlling language ("think about" instead of "must"); and hold regular office hours when any employee can come talk to you about anything. Create diverse teams focused on collaboration, not competition. Animate with purpose, not with rewards. Encourage self-organizing teams. Build projects around motivated individuals.

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The concept of self-organizing teams challenges traditional business practices by shifting the focus from top-down management to a more collaborative and autonomous approach. In traditional settings, decisions are often made by managers and passed down to employees. However, in self-organizing teams, decisions are made collectively, with each member having a say. This encourages a sense of ownership and responsibility among team members, fostering innovation and productivity. It also promotes a culture of trust and respect, as team members are trusted to manage their own work and make decisions. This can be a significant shift from traditional hierarchical structures and may require a change in mindset for both managers and employees.

The principles of autonomy and purpose from Daniel Pink's 'Drive' can be applied in today's business environment by creating a work culture that values self-direction and meaningful work. Autonomy can be fostered by giving employees the freedom to set their own goals and choose their own tasks, rather than being micromanaged. Purpose can be instilled by aligning the company's mission with the personal values and goals of the employees, making them feel that their work is contributing to something larger than themselves. Regular communication and feedback can also help in reinforcing these principles.

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Get compensation right: ensure internal and external fairness; pay people a little more than the market average; and make sure any performance metrics are varied, relevant to the company as a whole, and hard to cheat.

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