High performance companies have well-developed recognition programs and provide employees with genuine appreciation. Recognition and appreciation continually show up near the top of lists of motivational factors. They create an atmosphere of fun and excitement, a will and passion to win, which are so vital to continuous improvement.

Money, surprisingly, always shows up as fourth or fifth on any list of motivational factors. While lack of money can be a de-motivator, the chance to earn more is not a motivator. Pay gets people to turn up at work, it doesn't get many to excel. It can't create that sense of energy and excitement.

High performance organizations are filled with high performers who are highly paid. Pay people well, and get on with life. Focus attention on building a culture of success, providing lots of recognition and appreciation for everyone's contribution.

Genuine appreciation is not flattery or any attempt to be manipulative. People's BS meters go into alert when managers attempt to use flattery or "atta boy's" to get a task completed. It actually does more harm than good and acts as a de-motivator.

Steps to effective reward and recognition include:

• Make the program simple and direct. It should be easily understood. People should see a directly link to customers/partners and compensation.
• Levels of rewards might be personal, team, and corporate. Use them to motivate, not manipulate.
• Never tie rewards to budgets. Make rewards a function of earnings to avoid budget game playing.
• Be clear about what is rewarded and recognized, and by whom.
• Make sure there is balance between performance and improvement. People who are performing, but not improving, will be a liability in the future.
• Don't set up competitions for limited rewards - unless teamwork isn't important. Use of plateau-based rewards creates energy as many people win, avoiding the fear of failure and losing that competitions create.
• Don't use suggestion programs. They reward people for lobbing ideas to others to implement.
• Traditional performance appraisals don't work. To help improve performance, use 360 degree feedback combined with frequent performance discussions and coaching.
• Recognize both individuals and teams. Use a wide variety of methods as different things excite different people. Involving employees, not just managers, in setting up recognition and reward programs, helps ensure that people will be turned on, not off.
• Keep measurement, improvement progress, and recognition highly visible.

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