There are two things people want more than sex and money.
It's recognition and praise.
- Mary Kay Ash
Here's how we used validation to scale our business past $30M:
It's recognition and praise.
- Mary Kay Ash
Here's how we used validation to scale our business past $30M:
At the end of the day, most people just want to feel seenβ
And know they're doing well.
Because we as humans, love outside validation.
This applies to every area of life...
And know they're doing well.
Because we as humans, love outside validation.
This applies to every area of life...
People want fame because it's mass validation.
People want wealth because it's a value validation.
People want love because it's personal validation.
People want wealth because it's a value validation.
People want love because it's personal validation.
Validation = recognition.
And recognition reinforces behavior.
Which is why:
Systemizing recognition can be a massive competitive advantage.
And recognition reinforces behavior.
Which is why:
Systemizing recognition can be a massive competitive advantage.
For instance, before having a recognition system, we had:
- More demands for higher pay
- More requests for time off
- More employee turnover
- Lower customer retention
- Lower customer conversion
- And lower profitability
- More demands for higher pay
- More requests for time off
- More employee turnover
- Lower customer retention
- Lower customer conversion
- And lower profitability
After implementing one, we had:
- Decreased employee churn by 18%
- Increased morale by 66%
- Increased productivity by 14%
- Increased profitability by 17%
- And increased referrals by 56%
Which is absolutely insane.
- Decreased employee churn by 18%
- Increased morale by 66%
- Increased productivity by 14%
- Increased profitability by 17%
- And increased referrals by 56%
Which is absolutely insane.
When building our recognition systemβ
We realized there were four main components:
WHEN
WHO
HOW
WHAT
We realized there were four main components:
WHEN
WHO
HOW
WHAT
WHEN are we going to recognize people?
We found four ways to do this:
Outcome based β Hitting KPIs
Effort based β Putting in the work
Milestone based β Time at biz/progress made
Value based β When they exemplify the biz's core values
We found four ways to do this:
Outcome based β Hitting KPIs
Effort based β Putting in the work
Milestone based β Time at biz/progress made
Value based β When they exemplify the biz's core values
WHO is going to recognize them?
To get the most out of this, we used these three methods:
1. Manager β Employee (standard)
2. Company β Employee (great impact)
3. Peer β Peer (less used, but profound results)
To get the most out of this, we used these three methods:
1. Manager β Employee (standard)
2. Company β Employee (great impact)
3. Peer β Peer (less used, but profound results)
HOW are we going to do to praise them?
1. Formally
This is predictable and easy to roll out.
But it delays gratification.
Which makes reinforcing desired behaviors hard.
2. Spontaneously
This is more spur of the moment.
And immediately reinforces positive behaviors.
1. Formally
This is predictable and easy to roll out.
But it delays gratification.
Which makes reinforcing desired behaviors hard.
2. Spontaneously
This is more spur of the moment.
And immediately reinforces positive behaviors.
WHAT are you going to praise them with?
We found three ways to do this:
1. Written = Message, social post, handwritten card, etc.
2. Verbal = Shouting them out on calls/team meetings
3. Rewards = Giving them gifts (swag, activities, awards, etc.)
We found three ways to do this:
1. Written = Message, social post, handwritten card, etc.
2. Verbal = Shouting them out on calls/team meetings
3. Rewards = Giving them gifts (swag, activities, awards, etc.)
The thing is, when you're smallβ
Recognition happens naturally.
But it's much harder to do at scale.
To make it easier there are a ton of great tools, but here are some I'd recommend:
- Nectar
- Credly
- Assembly
Recognition happens naturally.
But it's much harder to do at scale.
To make it easier there are a ton of great tools, but here are some I'd recommend:
- Nectar
- Credly
- Assembly
TLDR: Why recognition is important, and how to systemize it.
1. It radically improves your margins & retention
2. Standardize WHEN to recognize people
3. Delegate WHO should validate them
4. Determine HOW you're going to praise them
5. Establish WHAT you'll recognize them with
1. It radically improves your margins & retention
2. Standardize WHEN to recognize people
3. Delegate WHO should validate them
4. Determine HOW you're going to praise them
5. Establish WHAT you'll recognize them with
That's all for this thread.
I hope it's proven insightful.
If you're scaling your bizβ
I highly recommend you implement this system. ASAP.
Not sure what KPIs to base rewards on?
Check out this thread here:
I hope it's proven insightful.
If you're scaling your bizβ
I highly recommend you implement this system. ASAP.
Not sure what KPIs to base rewards on?
Check out this thread here:
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