Motivation & Decision Making for Entrepreneurial Product Development- Part 3 of 3

In my experience, people within large organizations are more likely to become distracted by misplaced motivations than are those within smaller, more entrepreneurial ones. The compensation and equity models (stock options, profit sharing, etc.) common within smaller entrepreneurial companies often result in motivations that are more aligned with that of the shareholders than within large organizations where the incentives and rewards may not be as directly and clearly linked to the profitability of the company has a whole. To the extent possible, large companies should try to create an entrepreneurial culture where every member of the team is continually and consciously considering how their actions and decisions will affect profitability. It is easy to lose sight of the overall picture if one is playing a small part in a large organization. Managers can help their employees see how they fit into the whole. One small way that managers can help to maintain this focus by their subordinates is to incorporate the following questions into their periodic performance reviews: “In your estimation, what decision have you made since the last review that has had the most positive effect on the profitability of the company?”

Unless one is in a position of authority they may not have much power to explicitly influence the motivations of others. Nevertheless, I have found that an awareness of those motivations and an ability to anticipate how they affect the decisions of others is often useful. At one time or another any of us may become distracted or redirected in ways that may cause us to lose sight of the goal, particularly at times of stress and anxiety. By being aware of those potential distractions and recognizing them when they arise within ourselves we may choose to modify our own behavior and thereby better serve our company, its shareholders and society as a whole. In this way we can subtly influence and lead those around us by our example.

Motivation & Decision Making for Entrepreneurial Product Development- Part 1 of 3

Motivation & Decision Making for Entrepreneurial Product Development- Part 2 of 3