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The Carrot Principle by Chester Elton |Book Brief

In the Carrot Principle, author Chester Elton draws on one of the most in-depth management studies ever conducted to definitively show that the key to getting the most out of your employees is frequent and effective recognition. Good managers become great, Elton argues, when they use power of positive recognition and reward to accelerate goal setting, communication, trust and accountability within their organization. Elton’s book is a practical guide that shows you how to increase productivity, engagement, retention and profitability by leading with the carrot instead of the stick.

Speaker: Chester Elton, Co-author of "The Carrot Principle"

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Tags: Recognition, Elton |Book, Operational Planning, Financial Accounting, Business Operations, Finance, Chester Elton, The Carrot Principle, Reward, Leadership, Management, Carrot Culture, Business Book Brief

 

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The Carrot Principle by Chester Elton |Book Brief

In the Carrot Principle, author Chester Elton draws on one of the most in-depth management studies ever conducted to definitively show that the key to getting the most out of your employees is frequent and effective recognition. Good managers become great, Elton argues, when they use power of positive recognition and reward to accelerate goal setting, communication, trust and accountability within their organization. Elton’s book is a practical guide that shows you how to increase productivity, engagement, retention and profitability by leading with the carrot instead of the stick.

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>> The book, the Carrot Principle, extols the transformative power of praise and recognition. Author, Chester Elton, is here to show you how to use this secret ingredient to motivate your team and maximize profit.

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>> Chester Elton: Want your employees to work harder, achieve more and stay with the company longer? Well the key to that is the carrot. We call it building a carrot culture at work; 65% of North Americans report they weren't recognized at all last year, and 79% of top performers who changed organizations report lack of recognition as a key reason. An extensive 10-year study on work place productivity conducted by Health Stream Research reveals that organizations that effectively recognize their employees are three times more profitable than those that don't. 6

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>> Chester: You've got to start out with a solid foundation--what I call the basic four traits of good leadership. They're goal setting, communication, trust and accountability. These four characteristics are the fundamentals of good management. Good managers become great when they add recognition to the next. That's because recognition acts as a powerful accelerator dramatically increasing their manager's effectiveness in each of the basic four leaderships. Goal setting is accelerated by rewarding activities that move employees closer to the goal. If a company wants speed, it rewards employees who provide quick responses. If the goal is accuracy, it recognizes those who perform with a minimal margin of error. And what more effective way to communicate company values and desired behavior than to recognize and reward it preferably in public. Recognition also accelerates trust; because when you publicly recognize an employee that employee and everyone else instantly see that you can be trusted to share the credit. And by recognizing accomplishments and milestones toward larger goals, you're letting employees know in a very positive way that they're being held accountable for the overall success of the project.

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>> Chester: How can you make recognition an integral part of your company? There are at least four occasions for recognition that commonly occur in a healthy carrot culture. There's above and beyond performance--something like an outstanding sales achievement; there are career recognitions, say the employee's date of hire, their anniversary. There are celebration events--maybe the company Christmas party; and then there's day to day recognition. That's the pat on the back, the team lunches, the small gifts of thanks you offer on a regular basis that praise and express gratitude to employees. This recognition is often low cost but always high touched and that's something you can do right away. Let's take a closer look. Day to day recognition must be frequent, specific and timely. For employees to feel valued and committed to the workplace, they need to receive some form of recognition every seven days. I recommend keeping a recognition frequency log like this one for my book, so you can be sure you're keeping up with everyone. Next, you should always make praise specific. General praises like thanks everyone for your hard work or you rock are useless. Thanks relating specifically to what the employee did and how it was helpful has tremendous impact. It shows we know and value what the employee is doing. And make sure your praise is timely. Immediate recognition shows you are paying attention; and value the contribution. It's frustrating to do something great and then wonder if anyone ever noticed. Just think of how your spouse feels when you miss a birthday or an anniversary by just one day. It's important to remember that recognition always has more impact if the reward is something meaningful to the recipient. So take the time to learn what each employee values. What are their hobbies, interests, career goals? That way, the reward will be treasured. Developing a carrot culture takes time and effort. And your first attempts may feel a little awkward but don't let that hold you back. My best advice is to just get started and stick with it. Before long your abilities as a manager will soar as you use the power of recognition to lead your team to new levels of achievement. Remember, effective recognition is frequent, specific and timely. Enjoy the book and good luck in building your own carrot culture.

==== Transcribed by Automatic Sync Technologies ====